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A wave of foreign beauty brands is making a splash in the Indian market. Among the latest to join is Kylie Cosmetics, which recently debuted at Sephora India. Kylie Jenner’s beauty line follows in the footsteps of previous entrants like Rihanna's Fenty Beauty and Selena Gomez's Rare Beauty.
Rising disposable incomes among the middle-class and the growing influence of celebrity-endorsed products have created an ideal environment for international beauty brands in India. However, homegrown brands still hold a distinct advantage amidst this influx.
In March, Rihanna introduced Fenty Beauty to India, and Selena Gomez's Rare Beauty launched last year. Through partnerships with e-commerce platforms like Nykaa and Sephora, these global giants are quickly establishing a presence in the Indian beauty market.
At Nykaa, which features over 250 premium brands, premium category constitutes one-third of its beauty and personal care (BPC) revenue. The platform facilitates access for global brands such as Fenty Beauty, Charlotte Tilbury, and e.l.f Cosmetics to Indian consumers.
Similarly, Tata CLiQ Palette, which offers over 1,000 global luxury brands, sees strong demand for names like Estée Lauder, MAC, Moroccanoil, and Bvlgari. “We’ve observed a significant demand for global brands among aspirational customers looking to upgrade their products,” said Gopal Asthana, CEO of Tata CLiQ.
Sephora India did not respond to queries by press time.
Tanya Rajani, principal analyst for beauty and personal care at market research firm Mintel India, noted that the growing consumer base with higher spending capacity is a key driver for the entry and growth of international brands in India.
Additionally, beauty retailers have created direct channels between global brands and Indian consumers, offering them a low-risk entry strategy to test the market before opening physical stores. “This has significantly reduced entry barriers for international brands seeking to establish a foothold in the Indian market,” said Pallavi Arora, a research associate at Euromonitor International, a London-based market research firm.
As consumers of mass brands aspire for more, they tend to shift to ‘masstige’ brands — those positioned between mass and premium segments. These consumers might start with mini or sample-sized products before fully embracing premium offerings, Arora added.
“With the entry of global brands into the luxury segment, both international and homegrown brands like ours expect an increase in the number of products adopted per consumer, mirroring trends in developed markets,” said Kaushik Mukherjee, co-founder and chief operating officer, SUGAR Cosmetics.
Within the colour cosmetics category, new entrants have the opportunity to tap into specific trends and preferences, allowing them to carve out their niche, he added.
The India edge
While Indian consumers often equate international brands with premium quality, these brands must adapt their offerings to suit Indian preferences. According to Mintel, 38 per cent of users believe imported brands should cater to local needs, and 39 per cent feel that local brands best match their skin tone.
A spokesperson for the Good Glamm Group highlighted that Indian brands are producing globally competitive products tailored to Indian skin tones and weather conditions. Competitive pricing by domestic brands also limits global brands to the smaller premium segment of the BPC market in India, which is projected to generate a revenue of $31.51 billion in 2024, according to Statista.
Asthana said homegrown brands, known for their use of natural ingredients and clean formulations, perform well in skincare and haircare, with high demand for brands like Forest Essentials and Kama Ayurveda.
To assist Indian consumers in finding the right beauty products, Tata CLiQ Palette is integrating Beauty ID technology on its platform.
Indian celebrities like Katrina Kaif, Priyanka Chopra, Kriti Sanon, Masaba Gupta, and Deepika Padukone are also leveraging their understanding of consumer preferences through their brands Kay Beauty, Anomaly, Hyphen, Lovechild, and 82°E, respectively.
On its website, Kay Beauty says it focuses on products for brown and olive complexions, and those with yellow and orange undertones, while Masaba Gupta’s Lovechild offers an extensive range for all ages and skin colours.
Arora is of the view that Indian celebrity brands might pose challenges to international brands due to their local expertise and loyal fan bases, which can significantly influence consumer choices.
India is transitioning from a price-conscious to a value-conscious economy, said Samir K Modi, founder and managing director, Colorbar Cosmetics. International brands, he added, are driving competition and awareness, pushing local brands to emerge as global players.
Eyeing larger share
- Rising disposable incomes among the middle-class have created an ideal environment for international beauty brands
in India
- Competitive pricing by domestic brands is limiting global brands to smaller premium segment
- Indian celebrities like Katrina Kaif, Priyanka Chopra, and Deepika Padukone are also leveraging their understanding of consumer preferences through their beauty brands
