Cosmetic products play an essential role in everyone's life. They range from make-up, skincare and perfumes, to personal hygiene such as shampoos and soaps. The cosmetic market is driven by innovation as they constantly add new features to their existing products and it is a highly competitive market where more choice, greater efficacy and better results are expected by customers. In the current globalised world where the demographics of Western countries change, ethnic groups are gaining an increasing recognition in the marketing and business scene and responding to their needs and wants appear to be the key factor to success. It is particularly true in the cosmetic industry. The Global Cosmetic Industry and India. The market size of the cosmetics industry in India is estimated to be worth US$1.5 billion. It is projected to reach almost US$3 billion by 2014 The industry has been growing at an annual rate of almost 20%. A market surge of 19% Compound Annual Growth Rate (CAGR) is anticipated by 2014. The Indian cosmetic industry growth is twice as fast as that of the United States or Europe. In this fast growing industry it is essential to know about the customer perception and buying behavior. The customers perception about cosmetics has been changed from the traditional perspective. People are more aware of the brands of cosmetics.they started spending more on cosmetics. They consider cosmetics as a basic need in recent days. This project is a study about the females’ perception and buying behavior towards cosmetics in recent days.
BACK GROUND OF THE STUDY
The Indian cosmetic Industry has witnessed rapid growth over the last couple of decades. In that time the range of cosmetic and beauty products in India has widened tremendously. Beauty products manufacturers in India mostly cater to the great demand for cosmetics and toiletries that fall into the low or medium-price categories as the greatest demand in India has always been for these economically priced products. However, in recent years in the cosmetics market India competitors have begun to manufacture products to cater to an International need. For instance, herbal cosmetics from India have a great demand in the overseas market and many cosmetic products that are manufactured in India today are supplied to international suppliers of branded cosmetics products like The Body Shop for example. New facts that have been unveiled by a series of cosmetics business market analysis India reveal that many International companies are now outsourcing cosmetics to India and that the industry of cosmetic products India is growing at an average rate of almost twenty percent annually. This increase is attributed to two main factors. The first being the increase for the demand in Indian cost-effective products and the second being the increased purchasing power of the average Indian. Indian cosmetic industry
Fig.1. Indian cosmetic industry facts
There are also many reasons for the increased demand for cosmetic 10 Products in particular. With the introduction of satellite television and a wide array of television channels as well as the Internet, the average Indian consumer is constantly bombarded with advertisements and information on new cosmetic products which often translates into the desire to purchase them. A boom in the Indian fashion industry has also been linked to the increased awareness of Indian people about their appearances and consequently contributed to an increase in the demand for cosmetic products. However, even with the massive surge in the popularity of cosmetic products, statistics have shown that the average Indian consumer spends much less on cosmetic products than consumers from every other part of the world. This means that the Indian Cosmetic industry has an even greater potential for growth than it is presently experiencing.
Indian market for personal care products
Fig.2 Indian market for personal...