With its evergrowing aspirational consumer base and high awareness of Brands, India is a very lucrative market for the business of beauty and wellness. As Market Entry Consultants for beauty brands, we ensure that you make informed decisions and optimize your investments in this challenging market. We also extend online and offline brand building marketing services through digital presence and activations. Call us now to know more.

2. • Country Overview
• Beauty Market Overview
• Beauty & Personal Care Market Segmentation
• Compliances / Operations
• Pricing
• Investments / Go-to-Market Overview
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Content

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•Sub-continental in area 3.3 M km2
•5,653 km of coastline
•3214 km N-S, 2944 km E-W
•Desert,plain,tropic,mountain,ice
Geographica
l size :
•1.3 Billion (2nd)
•65 % <35
Population :
•8 major religions
•29 States & 7 Union Territories
•22 official languages
•800+ major dialects
Diversity &
complexity
•Secular & plurality
•Active Outspoken press >35k
publications
• > 800 M registered voters
• 75% of population, mobile users
Largest
democracy:
•Growth Expected to grow at 7.6% in
2015 & 7.7% in 2016 surpassingChin
•Service >50% ; Private =75% of GDP
•Increasinglyinvestment friendly
Economic
Emerging
Superpower:
India – Some Key Facts

5.  1.2 Billion people
 1.5% growth p.a.
 65 years life expectancy
 46 cities > 1 million
 65% (793m) of population < 35 year
 81% (988m) of population < 45 years
 Median age 25 years
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504M 42% 312M 26% 264 M 22% 144 M 12%
0-19 years
Techno Babies
20-34 years
Impatient
Aspirers
35-54 years
Balance
Seekers
55+ years
Arrived
Veterans
 350 M Middle Class
 17 M earn > $ 90,000 p.a.
 Urban population : 32%
 Gender ratio: 1:1
 80% Hindu; 14% Muslim
 Literacy 82% Male; 65% Females
 Per capita income 2014 $ 1627 compared
to $ 1508 in 2013
India – Demographics

6. North
• Delhi
• Political seat &
capital
• Agrarian
• Cult of landed
gentry
• Flamboyant &
flashy
• Strong in cosmetics
• 28% of Retail sales
• Greatest mall
density
East
• Kolkatta
• Culturally rich
• Marxist/communist
• Subdued
consumerism
• Discreet wealth
• Strong in skincare
• 8% of Retail sales
• Largely untapped
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South
• Bangalore
• Lush & tropical
• Heart of IT India
• Service industries
• Gulf money a driver
• Colourful
• Highest level of
literacy
• Matriarchal family
structure
• Strong in skincare
West
• Mumbai
• Commercial hub
• Cosmopolitan
(Mumbai)
• Better
infrastructure
• Strong in
fragrances &
cosmetics
• 40% of Retail sales
India is more than the sum of its parts –
“it is the sum of its contradictions”

7. Classification of Indian Cities
Tier I
(> 1m Popn)
Tier II
(= 1m Popn)
Tier III
(< 1m Popn)
Delhi, Mumbai Kolkatta, Bangalore, Chennai
Congested realty sector, High property prices
Major international brands present, Self indulgence on the rise, High
brand awareness, High media consumption, Saturated markets.
Pune, Hyderabad, Jaipur, Lucknow, Ludhiana, Chandigarh, Noida…
Available properties. However, prices on a rise.
Govt. of respective states focusing on infrastructural facilities and SEZ’s.
Aspirant consumers, high disposable income, Lack of competition.
Nasik, Trichy, Amravati, Raipur, Kanpur, Guwahati, Bhubhaneshwar…
Real estate markets yet to establish. Substantial potential demand
Consumers are exposed to brands thru sachet marketing.
Early mover advantage in terms of market entry.

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Currently…
smaller than
we can think
But….
Future…
probably
larger
than we
can
imagine
India – Beauty Market

10. Total Retail Market: $ 600.0 Billion (2015 est.)
Organized Retail: $ 48.0 Billion 8.0% of Total Retail
E Commerce : $ 6 Billion 1.0% of Total Retail
Personal Care market : $ 8 Billion 1.3% of Total
Retail & 17%of Org. Retail
Beauty & Cosmetics : $ 1.8 Billion 22.5% of
Personal Care
10/1/2015 10Source : BCG, RAI, Industry Estimates & Industry News
India – Estimated Beauty Market Size

11. Products supplied
on consignment in
most cases
BAs, Fittings &
Marketing on
distributors’
account
Strong wholesale &
grey market
Dept store type &
high street retail is
limited.
Large net work of
small multi product
retailer, local
tertiary city stores
Little opportunity
for large visual
space; all of it on
hire
Price sensitive. Low
switching costs for
consumers
Distinction
between mass,
masstige & prestige
is hazy
The unorganized
market size is 3-4
times of organized
retail market.
Heavy launch costs on
new products (in
terms of advtg, launch
promotions, free
samples)
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Characteristics of Indian Beauty Market

12. Wellness
Cosmetic
Beauty
Technology
Growth Drivers of Indian Beauty Market
Focus on Natural &
Organic products.
Growth in demand
of essential oils.
Increased
awareness about
Cosmetic centers ,
Cosmetic products
Upsurge in
services at Spas &
Wellness centers
Urban population
is more focused
on Health &
Fitness
Growth in skincare
awareness .
Increase in demand
of treatment prods.
Aspirational
consumers willing
to experiment with
hair colors &
treatment
90% of population
are mobile users of
which > 70% are
smart phone users
Digitally connected
consumers. Social
Media very popular
Videos, Virtual
demos, bloggers
very popular in the
Beauty segment

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14. Skin Care, $1.28 , 16%
Cosmetics, $0.48 , 6%
Fragrances, $0.08 ,
1%
Bath, $3.68 , 46%
HairCare, $2.48 , 31%
Indian PersonalCare Market
~ $ 8.0 Bn The skincare
market is still
small but
growing at a high
rate and away
from basic
creams &
moisturizers to
specialized
products such
anti-wrinkle, eye
defence
Speciality
products,
cosmetics &
deodorants are
growing at
20%+ per
annum,
propelling the
total personal
care market in
India to double
by 2016-18
Personal Care Market Segmentation in India
based on category

15. Super
Prestige
(above $100)
Prestige
($60- $100)
Premium
( $30-$60)
Mass Premium
($10 - $30)
Mass
(Below $10)
Source: Market Segmentation is on the basis of avg. price of a beauty product or service (Survey by Argus CMPO)
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15
Beauty Market Segmentation in India
based on pricing

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1. Mandatory Registration.
2. Time taken : 90 to 180 days depending upon documents clearance by the
FDA authorities.
3. General documents required are as follows :
• Power of Attorney in the name of the Importer / Distributor
• Original or copy of the labels bearing the name & address of the
manufacturer.
• Free Sale Certificate (FSC)/Marketing Authorization
letter/Manufacturing License, if any
• Product specification and testing protocol.
• List of countries where Market Authorization or import permission
or registration was granted.
• Pack insert, if any
• Soft copies of the information about the brands, products and
manufacturer.
• Composition for Lab Analysis of the products
• Declaration that the products are not animal tested.
Registration of Beauty Brands in India

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Cosmetic products which are imported into India as bulk for repackaging for 100%
export to other countries will not require registration certificate. In such cases the
importer has to obtain the necessary permission from CDSCO HQ. Importer must
give written undertaking that these products are not released for domestic sale.
FDI for Beauty Retail :
100% on single brand
51% on multibrand retail
Operations in India
Brands can also set up their operations in India through :
• Liaison /Representative Office
• Project Office
• Branch Office
• Pvt. Ltd. Co.
Opportunities for Salon brands could be :
• Franchising
• JV Partners
Other Operation Opportunities in India

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Summary of Coefficients in Pricing
Note : Pricing coefficients will vary depending upon various factors like margin
terms with distributors & marketing investments. Above chart is indicative.

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22. • Product Registration
• Product Trainings
• Technical Trainer (Important for
professional products)
• Trade Offers
• On Counter Promotions
• Sales Incentives
• Brand Building (online / offline )
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Areas of Investment

23. Brand
Regional
Distributor
Wholesaler SuperStockist
Consumer Small
Retailers
Sub -
DistributorRetailer
Exclusive Distributor/
Importer
Channels of Distribution

24. BRAND
Price
Positioning
Market Roll
Out
Distributor
Assessment
Brand
Building
Competition
Price
Retail Price
Export Price
Brand
Portfolio
Financial
Stability
Sales
Distribution
Network
Establish Tier 2
& Tier 3 cities
Invest in
Trainings
Invest in
counter
promotions
Leverage
technology
Online/Offline
integration
PR and Media
Spend
Smooth Entry to Indian Beauty Market

25. Phone:
+91 224 264 9627
+91 8080856256
Email:
info@arguscmpo.com
CONTACT US:
WELCOME TO INDIA

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