News: Retail India gets a major cosmetic touch-up

(DNA 25/06/2006) Kolkata - With the retail revolution going big bang, India seems to have undergone some major cosmetic changes. A host of mid-line global cosmetic brands like Body Shop, Max Factor, Chambor and so on have entered the country. And it is the large departmental stores like Shopper’s Stop, Pantaloons and Lifestyle that have become their key sales channels.

It seems these brands are here to stay. And why not? If the cosmetics market is growing at around 25% per annum in India, colour cosmetics alone have grown at a whopping 387% from 1997 to 2004, according to Euromonitor.

And, by the look of things, the tempo has sustained. In organised retail, the share of mid-market cosmetic brands like Max Factor, Bourjois, Pupa, Chambor, L’Oreal, Arcanil, etc. have recorded a growth of approximately 40% since 2004 and this has been helped by the recent entry of newer brands.

The cosmetics and toiletries market in India is estimated at Rs 1,500 crore and has grown 62.6% from 1997 to 2004.

The brands have been quick to move in for the kill too. Most of them have very accessible and visible counters with trained beauty consultants with tester stands to offer high-quality service to customers.

Promotional activities include in-store makeover sessions, associations with women-oriented events, mall promotions to introduce the look of the season and new products. Bridal makeover sessions are also becoming common. On-counter promotions to offer value-additions to customers are available during the festive seasons.