Devangshu Dutta
June 30, 2025
In every strategy meeting today, one metric is invariably mentioned: Customer Acquisition Cost (CAC). Whether you’re a well-funded corporate retailer, or raising your first angel round, or a well-established digital duopolist brand scaling Series C, CAC is one of the key performance metrics. “Real” spend that is neatly broken down by channel, optimised by funnel tweaks, scrutinised to the last rupee or dollar.
But there’s a metric we almost never hear about that could be costing brands far more in the long run.
Let’s call it Customer Forfeiture Cost (CFC), the residual lifetime value that is lost when a customer walks away from your business not because of price, competition, or even shifting needs, but because of a “burn”: a delivery missed or messed up, a refund that took weeks, an arrogant customer service call, or a product that failed spectacularly against the promise. In other words, when your brand hurts someone enough to make them walk away. Probably for ever.
It’s a paradox: brands are pumping thousands of crores into acquiring users, but they’re bleeding value at the other end. Yet, while CAC is a line item in every financial statement, CFC is invisible in management dashboards. CEOs don’t announce, “We’ve cut our forfeiture cost by 20% this quarter.”
Yet. every CXO knows it exists. The NPS scores, the social media complaints, the “never again” comments in reviews, the sinking feeling when repeat purchase rates fall.
Why CFC Matters More Than Ever
In every business, during the early stages each sale is a victory. Whether it was the retail chains that grew in the 1990s and early-2000s or the digital upstarts that came up through 2010s and 2020s, scale has been the mantra, and investors have poured money into scaling through the growing consumption of India 1 and India 2 customers.
Today customer acquisition isn’t cheap. The same person who clicked impulsively in 2020 now thinks twice before confirming payment. In this landscape, retention isn’t optional, it’s existential.
Every lost customer isn’t just a refund processed, or a cart abandoned. It’s the long tail of future repeat purchases that will never happen, negative word of mouth and brand distrust in the customer’s circle of influence, and increased future CAC due to declining organic reach.
Way back in 1967, management consultant Peter Drucker wrote in his book “The Effective Executive”: “What gets measured, gets managed”.
Today your CAC may be Rs. 500-1,000. If the average customer life time value (LTV) is Rs. 10,000, and a single burn causes churn after just one order worth Rs. 2,000, your CFC is Rs. 8,000, and that doesn’t even include reputational spillover.
Why We Don’t Measure It
Yes, CFC is hard to quantify. It’s not as easily attributable as ad spends. There’s usually no neat model telling you why someone never returned, because tech stacks aren’t typically designed to track emotional exits. And let’s face it, introspection about broken relationships is uncomfortable, even for management teams.
But that doesn’t mean it’s not real. If a customer leaves because your delivery executive messed up, or because your app crashed during checkout twice in a row, that’s on you, not the market. And in a business climate where sustainable growth is the mantra, LTV is king.
Ignoring CFC is like watching your roof leak and blaming the rain.
Toward a New Discipline
Brands and retailers must start measuring CFC, the value lost when customers disengage due to friction, mistrust, or neglect, and then start working on reducing it. This can be done by:
The Competitive Edge We’re Not Using
In a crowded space where everyone’s vying for eyeballs, trust is the true moat. Customers don’t expect perfection – they do expect accountability, authenticity, and recovery when things go wrong.
Brands that understand and act on Customer Forfeiture Costs will quietly start building a powerful edge: deeper brand loyalty, lower CAC over time thanks to referrals and repeats and greater lifetime value per user.
In other words, real, compounding value.
As the Indian brand ecosystem matures, Customer Forfeiture Cost needs to be as visible and valued as CAC. Acquisition is the invitation; experience is the relationship. Relationships, once broken, are expensive to rebuild; if they can be rebuilt at all.
In the end, growth isn’t just about who comes in. It’s about who stays, and why.
(Written by Devangshu Dutta, Founder of Third Eyesight, this was published in Financial Express on 2 July 2025)
admin
June 7, 2025
Pooja Yadav, Inc42
7 Jun 2025
SUMMARY: Nearly two decades after its founding, Myntra has made its first international foray with the launch of‘Myntra Global’ in Singapore. Armed with 100+ Indian brands and over 35,000 styles, it is betting big on the 6.5 Lakh-strong Indian diaspora. Shipping directly from India without local warehousing helps avoid upfront costs but could lead to expensive shipping, long delivery times, and tough return logistics.
Nearly two decades after its incorporation in 2007, Myntra announced last month that it marked its first international foray under the new ‘Myntra Global’ banner. The fashion ecommerce marketplace has launched its operations in Singapore.
The Flipkart-owned platform aims to leverage brand loyalty to drive cross-border commerce by tapping into the Indian diaspora of around 6.5 Lakh people in the island nation.
However, while the brand’s intent is clear, the timing and choice of market raise some concerns. For starters, Singapore isn’t going to be an easy market, especially for a newbie like Myntra. This is because the region is filled to the brim with players like Shopee, Shein, Lazada, and Zalora that enjoy a strong brand recognition and stickiness.
Then, experts believe, Singapore-based shoppers are highly selective, constantly seeking great deals and ahead of the rapidly evolving fashion trends. This, among other factors, could make Myntra’s Singapore entry arduous.
So, what makes industry observers say so? Why isn’t Singapore a promising market for Myntra to begin with? What are the stakes at play here — the hits and the misses? Let’s get right into these questions to make sense of Myntra’s Singapore foray.
A Strategic Experiment?
Myntra’s entry into Singapore isn’t just about going global, it’s a strategic experiment to understand how Indian fashion resonates beyond borders.
According to CEO Nandita Sinha, the core of this launch is Myntra’s attempt to test the waters and understand the product-market fit for Indian fashion in an overseas setting.
But why Singapore? Well, the choice was driven by data. Myntra has found that about 10–15% of its web traffic comes from international markets, and Singapore stands out as a concentrated and engaged segment.
According to Statista (2024), approximately 6.5 Lakh Indians reside in Singapore, with around 3 Lakh Persons of Indian Origin (PIOs). Sinha pointed out, “While analysing our data and exploring potential market opportunities, we discovered that nearly 30,000 of these users are visiting our platform every month.”
This organic interest gave the company confidence to make Singapore its first stop under the Myntra Global banner. The platform has gone live in Singapore with 35,000+ styles, which it now plans to scale up to 1 Lakh in the near future.
However, what’s interesting is that Myntra is betting big on desi styles and brands to cater to the Indian diaspora in Singapore. The platform has launched a curated lineup of over 100 Indian brands, including popular names like Aurelia, Global Desi, AND, Libas, Rustorange, Mochi, W, The Label Life, House of Pataudi, Chumbak, Anouk, Bombay Dyeing, and Rare Rabbit.
Whether it’s ethnic wear, fusion fashion, or home décor, the idea is to spotlight Indian design and craftsmanship. Not to mention, Myntra sees significant potential for cultural occasions such as festivals, weddings and special celebrations.
As per Devangshu Dutta, the founder and chief executive of Third Eyesight, Singapore is an ideal market for Myntra’s international test run due to several reasons. For one, it is a digitally advanced, high-income market with a significant Indian diaspora that is familiar with the brands Myntra offers.
“This makes it a natural nucleus for testing an out-of-India offering,” Dutta said, adding that Singapore’s relatively small size makes it easier to manage the complexities of merchandising across different segments, potentially making it a more efficient testing ground.
Moreover, if the business succeeds, Singapore could serve as a strategic launchpad for Myntra to expand into other Southeast Asian markets. However, for now, Myntra’s Singapore launch is less about scale and more about learning.
Ankur Bisen, senior partner and head at Technopak Advisors, said that Myntra’s recent expansion makes strong strategic sense. This is because it is no longer an Indian company, and expanding to Singapore and Southeast Asia offers significant scale and growth opportunities.
“Unlike a purely Indian company, Myntra can explore multiple markets simultaneously and is not restricted to focussing solely on India,” Bisen said.
However, not everything is rainbows and sunshine, as Myntra’s success will only hinge on pricing, local adaptation, and understanding the distinct preferences of the Indian diaspora in Singapore that may be different from Indian buyers. In simple terms, one size may not fit all.
Then, shipping delays and high logistics costs could dilute the value proposition, especially in a market like Singapore where consumers are used to fast and affordable service.
Imperative to mention that Myntra currently has no plans to set up a warehouse in Singapore. Myntra CEO Sinha mentioned that products would be shipped directly from India, where the inventory will be maintained by the brands themselves.
“Myntra Global was not intended to be a localised service tailored to the Singapore market or any other international location. Instead, the focus would remain on serving global consumers from India, with no immediate plans for physical expansion or local warehousing.”
What Could Go Wrong?
Expanding into a new market is always a risky affair. Some potential pitfalls for Myntra could be logistics complexities, return management, and supply chain localisation.
Yash Dholakia, partner, Sauce.vc, too, pointed out that execution risks extend beyond pricing and scale to include logistics, returns, and supply chain.
Dholakia added that Singapore is a different ballgame altogether, as its distinct retail landscape is not an easy feat. “The fashion industry’s fast-changing nature calls for a sharp understanding of Singapore’s diverse, millennial consumers, who have unique cultural preferences and social media-driven buying habits.”
Moreover, many second- or third-generation PIOs see themselves mainly as Singaporean and have different cultural and fashion preferences.
Therefore, assumptions that what works in India will work for this class of consumers may lead to failure.
To hedge this, Myntra will have to take a fully local approach, which will include setting up independent teams on the ground to understand and address these local differences, rather than just copying and pasting its India playbook.
Moreover, from a branding and market reach perspective, targeting just the 10–15% Indian diaspora in Singapore restricts Myntra’s audience significantly. The fashion market in the city-state is already competitive, with several efficient players offering fast and affordable options.
“Myntra’s edge would primarily be Indian ethnic wear, which restricts its ability to emerge as a broad-market contender,” Dholakia said.
Per Dutta, relying heavily on the Indian diaspora may provide a strong initial boost, but this may not sustain for too long.
A Launchpad For D2C Brands
This is not the first time Myntra has tried to enter an international market. In 2020, Myntra partnered with UAE-based platforms, noon and Namshi, to enter the Middle East with a few Indian brands.
However, its current expansion into Singapore looks more ambitious with a cavalry of over 100+ Indian brands.
To strengthen its footprint in Singapore, Myntra is offering free shipping across a wide range of categories, including women’s fashion, kidswear, and home essentials.
Myntra is offering products across a wide range of price buckets. In the women’s tops category, prices start as low as INR 350 with brands like Tokyo Talkies, and go up to INR 4,800 with brands like Berrylush, DressBerry, and Vishudh. Western dresses also extend up to INR 7,100. In ethnic wear, kurtas range from INR 833 to over INR 3,800, while sarees are priced between INR 1,200 and INR 18,000.
“In terms of pricing, it’s ultimately the brands themselves that determine their price positioning on the platform. As they begin listing and transacting with consumers, they will decide how they want to price their products,” said Sinha.
In addition, what could work in its favour is the opportunity to give the global audience a taste of fast-growing Indian D2C brands.
Many Indian internet-first brands haven’t had the chance to engage with global consumers before, but this expansion lets them showcase their products directly to the Indian diaspora in Singapore.
Besides, the expansion will allow Indian brands to understand new consumer preferences, optimise their product mix for cross-border demand, and grow their presence beyond India.
This pilot could indeed spark broader cross-border opportunities for Indian D2C brands. But it demands localised marketing, deep consumer understanding, and a willingness to adapt to regional preferences.
For brands used to making for Indian buyers, this could be a steep but rewarding learning curve. If executed well, it offers them not just an entry into Singapore but a scalable template for global expansion.
The Cross-Border Gamble
Myntra’s global play comes at a time when the ecommerce platform posted a net profit of INR 30.9 Cr in FY24 versus a loss of INR 782.4 Cr in FY23. This turnaround came on the back of a 15% increase in its operational revenue and tighter cost control.
The platform generates revenue through a mix of transaction fees from sellers, logistics services, advertising, and its private labels. To move towards profitability, Myntra brought down its total expenses to INR 5,123 Cr in FY24 from INR 5,290.1 Cr in FY23.
However, its recent entry into Singapore may bring new financial challenges, even as Myntra has opted not to set up a warehouse in Singapore. It would rather ship products from India through third-party logistics providers.
So, is the fashion major being penny-wise and pound-foolish?
Probably. While this asset-light model avoids upfront capital expenditure, it introduces risks such as longer delivery times, higher logistics costs, customs delays and complicated return processes that could sour customer sentiment. For a platform that just turned profitable, these are crucial levers that could strain margins.
Further, even though Myntra is not offering exchange and returns currently, once it does, it could complicate things further.
This is because shipping a 2 Kg fashion parcel from India to Singapore costs an estimated INR 2,800 to INR 3,500, inclusive of air freight, GST, and last-mile delivery. Reverse logistics could add another INR 1,200 to INR 2,000 per item, pushing the total cost per cross-border order significantly higher.
According to Dibyanshu Tripathi, cofounder and CEO of Hexalog, a logistics company, cross-border logistics could significantly impact Myntra’s profitability as it expands into Southeast Asia.
“Sustaining margins will be challenging with high per-order shipping costs, return expenses, and longer delivery timelines that may affect customer satisfaction. Without localised infrastructure or cost efficiencies, profitability in new markets may be hard to maintain despite revenue growth,” Tripathi said.
In contrast, players such as Lenskart and Nike have structured their global expansions with supply chain control at the core.
All in all, Myntra’s Singapore foray is a bold experiment aimed at testing global appetite for Indian fashion, especially among the diaspora.
While the move offers promising opportunities for Indian D2C brands and cross-border growth, it’s also fraught with challenges. For one, with a lack of local infrastructure, high shipping costs and a diaspora divided between two cultures, sustaining this expansion may prove tough. Can Myntra turn its Singapore pitch into a lasting global success story?
(Published on Inc42)
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May 7, 2025
Shalinee Mishra, Exchange4Media
May 7, 2025
Bollywood’s biggest stars, Katrina Kaif and Deepika Padukone, have reputed beauty businesses to their names — Kay Beauty and 82°East, respectively.
Kay Beauty, launched in late 2019 in partnership with Nykaa, has crossed the ₹200 crore revenue mark in 2024. In contrast, 82°E, launched by Deepika in November 2022, has managed around ₹25 crore, according to industry estimates.
Both actors have massive social media pull, strong brand equity, and sizable fan followings. They are matched in popularity, but the same cannot be said about their respective brands. One clearly has an edge over the other. In this case, it is Kay Beauty.
What went wrong with 82°E?
A core difference between the two brands is pricing.
Kay Beauty’s average product is priced affordably at around ₹299, making it accessible to a large portion of Indian beauty consumers. It hits the sweet spot of mass affordability and aspirational branding.
Katrina seems to have built the line keeping in mind India’s price-sensitive but beauty-conscious audience, especially women who look for functional, everyday products without shelling out a fortune.
On the other hand, 82°E positions itself as a luxury skincare brand, with products starting at ₹2,500 and going up to nearly ₹4,000. While targeting the premium market is a valid strategy, it demands either a very clear value proposition or a unique, standout offering that sets it apart from both domestic and global competitors.
According to multiple marketing and retail experts, 82°E currently lacks such a defining “hero” product. In contrast, top-tier global brands like Estée Lauder (Advanced Night Repair) and L’Occitane (Immortelle Divine Cream) have built their entire portfolio identity around one or two iconic products.
Devangshu Dutta, CEO of retail consultancy Third Eyesight, cautions against overestimating the power of celebrity equity alone. “Celebrity involvement, even with an equity stake, doesn’t automatically ensure brand success,” he says. “What matters is how well the product and brand resonate with the end consumer. Many factors—category selection, pricing, accessibility, and retail strategy—determine scalability.”
He adds, “A high-priced D2C brand with limited-use products will always scale slower than a more affordably priced, high-rotation brand with widespread retail availability.”
Missing the emotional connect
Another crucial area where 82°E falters is brand recall without Deepika. Experts argue that if Deepika’s face were to be removed from the branding, very little would remain to emotionally anchor consumers.
While celebrity-founded brands enjoy the initial boost of recognition, long-term consumer connection demands storytelling, product efficacy, and relevance.
For a product priced between ₹2700–₹3900, the experience and results need to justify the cost. But user feedback suggests the perceived benefits don’t dramatically exceed what one might get from a ₹999 serum in the market.
Katrina’s Kay Beauty, in contrast, positioned itself as a homegrown solution for Indian skin types, with products that worked well for deeper skin tones and humidity-prone weather.
The brand tapped into inclusivity and practicality—two emotional hooks that resonate deeply with Indian consumers. Additionally, it responded to functional needs by launching waterproof and sweat-resistant products, which especially make sense during monsoons.
On Instagram, Katrina actively promotes her products, collaborates with influencers, and shares content that resonates with her target audience. In contrast, Deepika’s brand presence on social media lacks the same level of relatability and consistent engagement, suggesting a need for a more tailored and active digital strategy.
Link: https://www.instagram.com/reel/DI_wjSRoZTM/? utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==
https://www.instagram.com/reel/DIWHG1DSR5f/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==
Retail footprint and distribution strategy
Skincare, particularly in the premium category, remains an experiential purchase. Consumers often want to try and test products before committing, especially at a higher price point. 82°E launched as a D2C-only brand, relying heavily on its website and social media advertising for discovery and sales with no store opening.
The strategy meant substantial upfront investment in paid media and influencer partnerships to generate traction, but lacked the physical visibility or tactile experience needed to convert high-end skincare buyers.
In contrast, Kay Beauty quickly became visible across Nykaa’s extensive online and offline retail network, giving shoppers a chance to explore products across price tiers in-store and online. The Nykaa tie-up served not only as a strong distribution engine but also as a brand endorsement in itself, given the platform’s dominant position in Indian beauty retail.
As Kushal Sanghvi, a media and marketing strategist, puts it, “Kay Beauty got its pricing, packaging, promotion, and place—basically the key P’s of marketing—spot on. Deepika’s brand, though elegant, is caught in a niche premium wellness space with limited scale.”
Kay Beauty was developed with a clear understanding of what works in India: colour cosmetics tailored for Indian skin tones and seasonal weather. The brand focused on frequently-used products like lipsticks, kajal, and foundation sticks that had both a functional and emotional appeal, allowing it to drive repeat purchases.
In contrast, 82°E focused on skincare rooted in self-care and holistic wellness, a space that is already crowded with local and international competitors, and where product effectiveness needs to be proven over time. Moreover, Indian consumers still tend to see skincare as utilitarian, rather than indulgent, which makes higher pricing even more of a challenge.
Short-Term Results vs. Long-Term Vision
It’s important to contextualise these figures within brand age. Luxury brands, globally, have often taken decades to establish loyalty. From Estée Lauder to Chanel, brand equity is built slowly through repeated use, reliable results, and consistent positioning.
But time alone won’t change the equation unless the core approach is recalibrated. If Deepika’s brand intends to build a long-lasting business, it will need to think beyond elite appeal and D2C strategy. Offline presence, a wider retail network, and possibly a reimagining of its product portfolio to include lower price points or trial-sized options could open the door to a broader consumer base.
India’s beauty and wellness market is growing at over 15% year-on-year, and opportunities abound at both the premium and affordable ends of the spectrum. But clarity of positioning and accessibility remain critical to long-term success.
(Published in Exchange4Media)
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May 5, 2025
Mint, 5 May 2026
Priyamvada C., Sneha Shah
Urban India’s pet parents are driving a wave of investor interest in the pet care space. A clutch of startups such as Heads Up For Tails, Supertails, and Vetic are now in fundraising talks amid rising demand for premium products and services
While Supertails looks to raise about ₹200 crore by the end of this year, Heads Up For Tails is eyeing an investment from domestic investment firm 360 One Asset over the next few months, according to mul tiple people familiar with the matter.
Vetic, a tech-enabled chain of pet clinics, is looking to raise a sizeable round and has begun discussions with investors, they said, adding that some of these transactions may see existing investors part exit their stake.
Supertails and Vetic did not immediately respond to Mint’s requests for a comment. While 360 One declined to comment, Heads Up For Tails’ founder Rashi Narang denied the development.
Investor interest in pet care surged in the years following the pandemic, driven by a wave of new pet adoptions and rising disposable incomes. In 2023, pet care startups raised a record $66.3 million across 16 rounds, led by one major transaction ― Drool’s $60 million fundraise.
While 2023 saw a funding spike driven by Drool’s large deal, overall funding activity in 2024 was more broad-based, with fundraising at $17.9 million spanning 13 rounds, as per Tracxn.
“Pet ownership in India is estimated to be less than 10% of overall households, but growing at a rapid pace with rising incomes, especially among urban consumers. In developed economies, pet ownership can exceed three in four households, and that headroom for growth is reflected among the upper income segments in India,” said Devangshu Dutta, chief executive of Third Eyesight, a management consulting firm.
He added that urban couples and singles in many cases are even opting to become “pet parents” instead of having children.
Platforms such as Supertails, Drools and Heads Up For Tails have been the big beneficiaries of this shift. Drools raised $60 million from LVMH-backed private equity firm L Catterton in 2023, while Supertails raised $15 million led by RPSG Capital Ventures in February last year.
Similarly, Supertails, which is in talks to acquire Blue 7 Vets, a multi speciality veterinary clinic, as part of its strategy to expand offline, will also raise capital to fund the acquisition of new customers, investments in technology, and the expansion of healthcare services, including Super-tails Pharmacy and build an omni-channel experience for consumers.
The company raised about $15 million in its series B funding round last year led by RPSG Capital Ventures and existing investors Fireside Ventures, Saama Capital, DSG Consumer Partners and Sauce VC.
(Published in Mint)
admin
March 20, 2025
Sagar Malviya, Economic Times
Mumbai, 20 March 2025
Established beauty product makers such as Forest Essentials, Colorbar, Kama Ayurveda, Body Shop, VLCC Personal Care and Lotus Herbals saw a slowdown in sales growth in FY24, according to the latest Registrar of Companies filings. Consumers favoured new-age rivals such as Minimalist and Pilgrim, specialised derma brands, as well as global labels Shiseido, Innisfree and Eucerin.
Sales growth of established brands mostly in the natural skincare segment, more than halved to single digits during the previous financial year amid a broader economic slump.
In contrast, companies such as L’Oreal, Nykaa and Sephora continued to grow at 12-34% on a significantly bigger base, even as they lost pace.
Direct-to-consumer brand Pilgrim more than doubled its sales, Minimalist’s revenue increased 80% and Foxtale’s sales surged 500% on a lower base.
“With most consumers tightening their budget on discretionary spends in FY24, they seem to have opted for brands that give instant benefits compared to natural products, which take time to be effective,” said Devangshu Dutta, founder of retail consulting firm Third Eyesight.
Over the past few years, there has been a flurry of beauty product launches, which have depended on platforms such as Nykaa and Tira for sales.
In the past two years, Nykaa has launched more than 350 brands, or In the past two years, or nearly one new label every alternate day on average.
This includes international brands such as CeraVe, Uriage and Versed, as well as home-grown brands such as Foxtale and Hyphen.
Reliance Retail, which entered beauty retailing with Tira two years ago, now sells nearly 1,000 brands, including exclusive labels such as Akind, Augustinus Badee, Allies of Skin, Kundal and Patchology.
“10 years ago we were only competing against big guys,” Vincent Karney, global chief executive of Beiersdorf, maker of Eucerin, Nivea and La Prakrit, told ET last month. “Now we have those local brands, and we have to become a bit more agile.”
On Nykaa, Fenty Beauty by Rihanna is the highest-selling brand in lipcare while Eucerin has become its biggest premium dermo-cosmetic serum. South Korean beauty brands Axis-Y, Tirtir and Numbuzin grew over 60% in 2024, with sales of toners increasing 104%, serums 45%, moisturisers 52% and sunscreens 154% on the platform.
VLCC and Colorbar did not respond to ET queries, while Forest Essentials was not reachable.
In January, Mike Jatania, cofounder and executive chairman of The Body Shop and Aurea Group, told ET, “There would be continuation of new entrants. Inflation is still a global issue and we will see the pressure. Competitive environment will be a challenge… 70% of our stores are showing decent growth. We have closed some stores and opened a few also, that’s the nature of the business.”
Ingredients Matter
Warnery of Beiersdorf emphasised the need to stay focused on “big innovation, by being able to talk to GenZ, (a position) which might be filled in by those local brands coming with basic ingredients.”
The likes of Minimalist, Ordinary and Pilgrim disclose active ingredients at a granular level, specifying the exact percentage of acid used in the product to appeal to GenZ users (those born between 1997 and early 2010s), who are said to be far more conscious of what they use on their skin compared to millennials (those born during 1980s to mid-1990s) and Gen X (those born from about 1965 to 1980).
Shoppers Stop, which manages brands such as Estee Lauder, Shiseido, Bobbi Brown, Mac and Clinique in India, sees the overall beauty market driven by companies focusing on consumers across age groups, and not just younger ones. Both natural and dermatological products are expected to find takers.
“While most new age brands tap younger cohorts, their pocket size allows them to mostly buy affordable products and the more affluent consumers opt for established global brands that have proven themselves since decades,” said Biju Kassim, chief executive, beauty, at Shoppers Stop. “Beauty is still not a habit in India and with hundreds of brands being launched, the focus is to grow penetration. There is also a shift from care to cure, driven by derma-recommended products and brands disclosing active ingredients, but it is still a niche sub-segment.”
Dutta of Third Eyesight sees the current trend as temporary. “We expect growth of (established) companies to bounce back in the current fiscal, driven by a strong demand for beauty,” he said, pointing especially to online platforms. India’s beauty and personal care market is expected to reach $34 billion by 2028, up from $21 billion now, driven by an online surge and a growing preference for high quality, premium beauty products according to a report by Nykaa and consulting firm Redseer.
Nicolas Hieronimus, chief executive of cosmetics giant L’Oreal, last year said consumers in India are more demanding and are not just settling for very basic things like putting an ingredient in a product such as salicylic acid or collagen. “That’s where L’Oreal has the best cards to play, and that’s where we really thrive,” he had told ET.
Beiersdorf, Unilever, L’Oreal and Shiseido, among the world’s largest cosmetics companies, have all identified India as a key growth driver, citing the burgeoning population and growing affinity for beauty products.
(Published in Economic Times)
