Indian cosmetic market could zoom in the next couple of years, manufacturers are hoping.
Cosmetic manufacturers too are hoping to dig deeper into the growing Indian economic pie.
The country’s premier industry body, The Associated Chambers of Commerce and Industry of India (ASSOCHAM) says India’s India's cosmetics market will rise by almost a half to 1.4 billion dollars in the next two-three years as people get fashion conscious and more brands are launched.With increased awakening about cosmetics brands, which is evident even in rural India, the industry size will zoom from the current level of 950 million, ASSOCHAM said in a press release.
However, it noted that despite high penetration of cosmetic items and the entry of new foreign brands, India's consumption of cosmetic and toiletries was far less than what was the case in other Asian countries. The per capita consumption in Hong Kong was 50 times that of India’s and Japan's 18 times.
Domestic cosmetics and toiletries industry has been growing at 15-20 per cent over the last few years, but India is a price sensitive market. Companies need to work out innovative strategies to establish a foothold here, it said.
"India's per capita consumption of cosmetics and toiletries for well-known branded products stands at 0.68 dollars as against 40 dollars in Hong Kong, 10 dollars in Malaysia and Taiwan, 12 dollars in Japan and 1.5 dollars of China," ASSOCHAM President Venugopal Dhoot said.
Hong Kong had the highest per capita consumption for cosmetics and toiletries products since it was the launching pad for such products for most Asian countries, he said.
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Unless foreign players changed their pricing strategies, they would find it difficult to penetrate the Indian market, Dhoot added. At the moment they constituted hardly 20 per cent of the products sold.
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