This project examines how the Indian cosmetics market offers a promising prospect to the international brands like Lakme and Revlon, and how these can benefit from developing a better understanding of the consumer buying behavior of the Indian Women as regards skin care products.
The cosmetics market in India is characterized by a very high volume sale of low-end skin care products. Similarly the rising middle class has generally been adding to the demand for cosmetics and upper- end toiletries. There are various products that are yet to boom in the Indian market like hand care products, bath and shower products and toners and it is assumed that only the richer consumers can afford these products where as the average consumers are not even aware of their existence.
This study tries to identify the various problems that existed and still exist in the Indian cosmetic market. It is therefore an exploratory research and quantitative techniques were used in the research. A response survey was conducted with a planned questionnaire so as to understand the impact of factors affecting consumer behavior and purchase characteristics shown by Indian women consumers while buying cosmetic brands available in the Indian market.
India was certainly an attractive goal for most of the multinational cosmetics companies. Since it was a free and fast growing economy with a large market and it did not have many competitors. It could be seen that there was a huge potential growth which was untapped. The growth rate of the industry will take time to level out as more of the Indian cosmetics companies had a larger growth. Whereas the foreign cosmetics companies even though they had a superior quality and was attractive remained as the smaller element.
A divergent growth trend has been maintained by skin care products. With the increase of disposable income most of the consumers have become brand conscious and there has been a rise in demand for these products. In the past years we have seen that the number of working women is on the increase this has led to high disposable income. This has attracted consumer spending. Since consumers are being quality conscious and their offices and institutions demand better use of clothing and cosmetics. There has been a major change in the consumer psychographics. We see that the consumers today do not perceive personal care products as luxury items or symbol of status. This has been the reason to the global brands have penetrated in the Indian consumer market.
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Findings n observations
Rising beauty concerns, improving purchasing power, and increasing influence of media are propelling the Indian skin care market that has grown exceptionally in the last few years. In the Indian beauty industry, skin care has been one of the fastest growing segments. As per the estimations the market will register more than 18% CAGR during 2011-2015 as the demand for skincare products will continue to increase across India.
People in India, now give more importance to branded products. They are increasingly shifting towards more customized skin care solutions. This report shall also discuss how the markets for face creams/lotions, talcum powder and face wash are performing in the country, and in which direction they are likely to proceed in the coming years. It also forecasts the share of skin care products in overall skin care market. Additionally, it also talks about the emerging trends like growing usage of anti-aging creams and nutria-cosmetics. Companies nowadays offer customer-centric products.
In 2012, whitening continued to be the key trend; however, it was no longer restricted to females. In addition, manufacturers started to focus on...