Lotus Herbals expands its line into Pakistan due to similarities of the skin care market

By Michelle Yeomans

- Last updated on GMT

Related tags: Skin care, Skin

The company believes that Pakistani women will want the same type of skin care products as Indian women
The company believes that Pakistani women will want the same type of skin care products as Indian women
The India herbal skin and hair care products manufacturer is expanding into Pakistan, with a belief that the demand for skin care will be akin to that of the Indian market due to consumer similarities.

The company, already widely received in the U.S, UK, Japan, South Africa, Dubai and Bangladesh is now aiming its Ayurveda inspired skin and hair care products at its neighbouring country as it says it has experience catering to skin types similar to the Pakistani consumer.

Cosmetics Design-Asia.com caught up with company director Dipin Passi who explained why Lotus Herbals is now focused on further expanding its product line in the Asia Pacific region rather than the West.

We would like to be the top three players in the Asia Pacific region, we feel it would be a better move than continuously focusing on the very competitive EU and US markets​.”

As well the competitiveness, Passi notes investment as a key issue as to why the company is purely focusing on APAC; “In the West, it is a case where you will be spending ten dollars and getting back one rather than spending one and getting back ten​.”

Experience in Asia Pacific…

Although we are in the color cosmetics and hair care sectors, we are known for our skin care products, and we feel that our experience catering to category three and four skin types in India will be widely received on the Pakistani market,” ​Passi told this publication.

He further pointed out that the skin care segment in Pakistan is second only to hair care and expects market consumption to grow at a higher rate than India, despite consumer demand similarities.

In terms of challenges, Passi tells told us that entering the Pakistani market will "stillbe a big investment despite knowing how to cater to the market’​, and that the country is also still “an area of conflict, but like entering any new market there will always be hindrances​.”

On the topic of the company's sales growth in the current financial year, Passi says that; "We have been growing at 35 per cent year on year and would like to maintain this rate in the current year", ​before concluding that although he has high hopes for the brand's success in Pakistan, he acknowledges that it will be five years before the company sees any real profits - even if the market is predicted to grow considerably.

Status of the Pakistani skin care market

According to Euromonitor, the skin care market in Pakistan reached US $107.2 billion in 2011.

For decades it has been dominated by companies like Proctor & Gamble, Reckitt Benckiser and UnileverPakistan which catered to all manner of products from shampoos to oral care products to fairness creams.

Now, the market researcher says the presence of smaller skin care brands is increasing as demand for more developed skin care products increases, giving more market share to multinational companies less likely to have stood a chance a decade ago.  















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