India is growing exponentially with a typically young population that is becoming increasingly urban, upwardly mobile and willing to put their money where their mouth is to look and feel beautiful. The Indian Beauty and Wellness industry, which according to one estimate is about INR 50,000 crores, is expected to maintain its scorching growth (20 percent plus annual compounded – and that is only the organised sector) which makes it way ahead of the so-called matured markets in Europe and America. Yes, we are talking a hundred thousand crores by the year 2020, on a conservative basis!
Quality beauty treatment calls for specialized knowledge which in turn, have created a huge demand for academies churning out such specialised care givers with almost all salon chains for example, having integrated backward into beauty education. The knowledge at these academies comes at a price – a huge one at that – and the number of aspirants queuing up to access such knowledge is another pointer – of the potential of the industry. The requirement for trained beauty professionals is widely expected to grow by at least three times from the current levels over the next couple of years, such is the optimism.
Among the various segments within the industry the demand for skin whitening products –for both men and women
– is virtually going through the roof. The number of me-too’s, and the sheer amount of noise that is being generated is one indicator of the state of affairs. While the MNC’s who have traditionally been at the forefront of the business since time immemorial still hold on to their edges, the real punch is being delivered by the home grown, natural labeled competition who have not only created vibrant niches but have also helped in providing a depth and spread in the market that was hitherto unknown.
It is not about creams, moisturizers, cleaners and cleansers only – cosmetic treatment, hair & beauty care, spa & body treatment … the industry is growing in all directions. And that is only one dimension. Add to it the fact that considering India’s population, the per capita consumption of beauty and wellness products is woefully low which from another dimension points at a colossal potential. Besides, as the industry penetrates into the rural and semi urban areas, new markets are opening up almost overnight with equally large potential user bases which too are churning out numbers that are too tempting to resist. Finally, over time and the inevitable maturity of the market, the investment in branding is beginning to pay off with the generic being replaced by the name brands. Consumers too are becoming more discerning, leading to a greater acceptance and penetration of brands. The unorganized sector – a scourge of all MNC’s in India is gradually taking steps backwards – though industry watchers opine that it will still be ages before the scourge is even contained, leave aside vanquished.
Another unique feature of this emerging trend is the fact that this growth is being driven by a market that is too prime to be taken for granted. Gone are the days of dumping excess products from markets far away – products have to be specifically created with the idiosyncrasies of specific market segments in mind. This explains the niches that home grown players have created and are seen to be defending so well.
The slimming and fitness market too is as big and the way chains have proliferated across the nation is testimony of the growing desire not only to look and feel good but also the willingness to pay for it. Body sculpting and cosmetic surgeries too have caught on in a in a big way and Indians are expected to embrace these services in bigger and greater numbers in the years to come.
Beauty still lies in the eyes of the beholder and there are big bucks to ensure that one attracts the eyeballs!