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Unorganized Color Cosmetics Market Losing Share to Organized Retail
Dec 26, 2018
Indian color cosmetics market is one of Asia’s biggest cosmetics market and growing at a faster pace. The Indian color cosmetics market is led by few players, which together accounted for the major share of the organized market. Rest of the market share is distributed among domestic and small-cap international brands. The market leaders include Unilever, L’Oreal and Revlon, Inc, and Unilever.
The dominance of organized players in the Indian market is an outcome of brand awareness, marketing, and reliability. Further, the rising disposable income in the Indian population allows spending on premium products. Lakme is the most popular brand among consumers. However, the market competition is expected to intensify in the coming years due to the invasion of foreign brands and the establishment of domestic players.
The dominance of organized players in the Indian market is an outcome of brand awareness, marketing, and reliability. Further, the rising disposable income in the Indian population allows spending on premium products. Lakme is the most popular brand among consumers. However, the market competition is expected to intensify in the coming years due to the invasion of foreign brands and the establishment of domestic players.
India - Color Cosmetics Market by Organized/Unorganized Sector (2017)
The players operating in the Indian color cosmetics market are taking strategic initiatives to hold the market dominance. For instance, players are establishing more retail stores to enhance the distribution to rural as well as urban areas, for instance, Kryolan Professional Makeup opened its new Kryolan City store in Chennai, India in the Citi Centre. Further, some of the players are introducing new products in the market depending on consumer demand. For instance, Avon launched Avon Life Colour, L'Oréal Paris introduced its new Extraordinary Clay Range and Kérastase launched The ‘Aura Botanica’ Range in the Indian market. Other key players are looking to invest in the market to create consumer awareness.
However, lack of advertising capacity, nominal awareness of the brands and inefficient marketing strategies limits the growth of unorganized players in the Indian market. The unorganized players are growing in the market but at a sluggish rate. Their products are majorly sold in the rural region which has less disposable income. So, the unorganized players are not capable to capture the market share of organized players in the Indian color cosmetics market.
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