A survey by global consultancy Kearney and Luxasia reveals that the Indian beauty industry is poised to break all records by becoming the most lucrative growth market for luxury beauty. South East Asia and India are on the rising graph of luxury beauty growth as per the survey. Here are more details on the matter.
Kearney and Luxasia recently released a whitepaper titled “Unlocking hyper-growth in Asia’s luxury beauty landscape“. The report suggests that Southeast Asia and India are poised to witness a significant rise in luxury beauty. They call it the gold rush as the market shows the potential of USD 7.6 billion by 2026. The numbers have almost tripled in the decade with a projected 11% CAGR between 2021 and 2031.
THE GOLD RUSH BEGINS
International brands are already rushing to establish their stronghold in the Indian beauty industry. Shiseido and NARS also recently announced standalone stores in India. The Indian beauty industry is welcoming beauty brands across the world, inviting them not just to sell but also make in India.
GLOBAL COMPETITION
China is a large market with great competition between international and domestic brands. Domestic brands invest in in-house R&D, reaping the benefits. Similarly, the Japanese market, the second largest luxury beauty market, is facing challenges in hosting international brands, as the domestic brands gain homeland advantage. Japanese consumers are inherently loyal to homegrown brands. The Indian beauty industry is growing and ready to leap, making it a perfect market for international brands.
GROWING ECONOMY
Growing economies in Southeast Asian countries, including India, are projected to surpass 1 billion people in 2026, comprising upper- and middle-class individuals. Under these conditions, experts anticipate that more consumers will transition from mass production to luxury. These are also the ideal conditions for the luxury beauty to grow.
According to the report, there are multi-ethical challenges that may hinder the process. However, in the long run, this is the golden window of opportunity for the luxury brand to enter and establish their bases in the Indian beauty industry.
