A new report jointly conducted by consulting firm Kearney and brand distributor Luxasia delves into the burgeoning landscape of India’s luxury beauty market.
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Currently valued at a robust billion dollars, this sector is projected to soar to USD1.6 billion by 2028 and quadruple to USD4.0 billion by 2035, boasting an anticipated compound annual growth rate (CAGR) of 14 percent.
India is emerging as one of the swiftest expanding markets not only in Asia but globally, fuelled by economic advancement, a burgeoning middle-class, and a growing taste for luxury.
Despite its relative modesty in terms of population size, India’s luxury beauty market today appears poised to mirror the rapid growth trajectory witnessed in China in the last 15 years.
According to Kearney and Luxasia’s new report, brands must plan to make inroads promptly and capture the incoming surge in demand.
“As we witness increasing consumer sophistication and a robust economic landscape, it’s evident that the time to invest in India’s luxury beauty market is now,” said Shashank Goel, principal at Kearney.
But navigating India’s diverse market is not without its challenges.
The nation’s mosaic fabric comprising diverse geographies and ethnicities engenders a labyrinth of consumer preferences across regions, demanding tailored strategies at a granular level.
Brands must pivot towards region-specific, and at times city-specific, approaches rather than relying on broad-stroke strategies.
Strategic pillars can include bespoke product offerings, targeted regional marketing campaigns, and seamless omnichannel strategies.
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“Success will hinge on a nuanced understanding of local preferences and the ability to customize offerings to meet diverse regional demands. Ultimately, brands that understand the pulse of Indian consumers will be the ones to thrive in this dynamic environment,” said Goel.