Cosmetics major Estée Lauder has recorded a growth of 50% in India over the past year thanks to the success of The Ordinary launch.
The growth in India helped to drive the organic sales growth momentum in the firm’s emerging markets.
“Indeed, in fiscal year 2023, our emerging markets delivered organic sales growth of 20%, led by India, Brazil, Turkey, and Thailand. India grew nearly 50% for the year, driven by excellent performance by our long-standing brands in the market and the very successful launch of The Ordinary,” said Fabrizio Freda, president, CEO and director, the Estée Lauder Companies.
L’Oréal Professional has launched Redken in India to fulfil the growing demand for specialised solutions across colour, styling, and care in the hair care market.
The French beauty conglomerate launched the American salon brand in India this August after observing a major demand for new hair care brands in India.
This is being driven by the growth of young affluent consumers.
“The young consumer of India, with a high propensity to spend on self-care, is now looking for brands that aren’t mainstream and bring something new on the table,” said DP Sharma, director, professional products division, L’Oréal India.
Indian skin care brand Dot & Key has grown five times over the past couple of years after repositioning it to attract mass market audiences.
Dot & Key was founded in 2018 by husband-and-wife team Suyash Saraf and Anisha Saraf. It was acquired by Nykaa in 2021 for an undisclosed amount.
Since 2021, the company has grown five times, co-founder Suyash Saraf told investors during Nykaa’s first-quarter earnings conference.
An extensive network of brick-and-mortar stores will be crucial in attracting global brands to India, says Nykaa’s beauty chief.
The Indian omnichannel retailer, which has worked with beauty multinationals like L’Oréal, Estée Lauder and Amorepacific, is anticipating an increase in the expansion of global beauty brands into India.
During an earnings call with investors, Anchit Nayar, CEO of beauty e-commerce, revealed that the firm was in close talks with global brand partners in the Americas, Europe and Asia.
India-based SUGAR Cosmetics is optimistic of significant growth opportunities in smaller cities due to factors such as a burgeoning consumer base, rising disposable incomes, and demand for accessibility to beauty products.
The brand recently opened its 200th standalone store and is currently available at retail outlets across more than 550 cities.
While opportunities abound in metropolitan cities, it is the “untapped potential” in the smaller developing cities, where interest in makeup is growing rapidly, that could fuel the firm’s next phase of expansion.