The beauty and wellness industry in India is booming, with a tremendous potential for growth. In fact, it is said to be growing twice as fast as markets of the United States and Europe. India is also the second largest consumer market in the world. According to a KPMG report, the size of India’s beauty and wellness market would be around Rs. 80,370 crores by 2017-2018. This includes the beauty products, beauty salon and spa businesses.
The Spa Association of India estimates that the Spa Industry is around Rs. 11,000 crores and continues to grow. It is estimated that the salon and spa business together account for 31% of the total size of the beauty and wellness market. The compounded annual growth rate of the Beauty & Wellness business in India has been around 18%.
Indeed, the beauty business in India is not only booming, but is expected to treble in the next five years. The herbal beauty business will continue to drive the growth of the beauty industry in India in 2018. Today awareness of beauty products and treatments is at an all time high in India. There is greater awareness of the ingredients in products and customers make choices based on their increased awareness. This is attributed to exposure to global trends, rising disposable incomes, changing lifestyles, increasing number of women in the work force and so on.
The retail sector is also booming. No wonder foreign companies are targeting the Indian market. Over the last few years, the beauty business in India has also moved to organized retail sectors, with the growth of shopping malls in the metro cities and even Tier 2 cities. Branding is becoming more and more important. So is brand identity. Beauty companies have to strive for better quality and also keep up with the demand for different products.
An important feature is the tremendous growth of e-commerce, with online stores also becoming popular shopping destinations, especially for cosmetic products. Actually, the Internet has changed the way we do business. It is estimated that India will be the fastest growing e-commerce market. Scientific techniques and modern beauty concepts are influencing the beauty business, giving rise to vast varieties of beauty products. Men’s personal care and anti-ageing products are slated for growth.
An important challenge in the Beauty Industry is the need for professionally qualified personnel. Beauty care as a service sector offers great scope for employment and entrepreneurship for women. This is one area where Government direction, assistance and encouragement are needed. It is necessary to learn about the market and make use of changing conditions, like the internet, commercial advertising methods, e-commerce, different business models, etc. Products and services are needed for the global market and this requires effort at various levels. Markets need to be explored. Presenting the products in a globally attractive manner is also essential, along with knowledge of the demands of the global market. Government can provide support in identifying markets, trade and promotions.
Skill development and vocational training in beauty and wellness need to be geared, not only for the international market, but also to compete with international brands in the Indian market. Our traditional knowledge of herbal healing is a real boon, but it needs to be related to modern demands and techniques. That is why a great deal of attention has to be directed towards research and development, product innovation, improvement in quality, in keeping with international standards and also combining traditional knowledge with advanced scientific techniques.
The current outlook is very encouraging, because the beauty industry in India has a great future.