Can the advent of international beauty brands in India propel homegrown ones in the right direction?

Every other month, a new international beauty brand’s launch in India is announced. How do blossoming homegrown ones then fare?

India is the fourth largest beauty market in the world today. From a market that credulously resorted to a handful of local or international drugstore brands like Lakmé, Lotus Herbals, Himalaya, and Maybelline New York, and then gradually progressed to M.A.C Cosmetics, Estée Lauder, and Clinique much after their advent in India in 2005, to housing over 2,000 international as well as homegrown brands, the Indian beauty industry has come a long way. While the Indian consumer’s forthcoming attitude towards beauty seems like a recent development, “natural” and “Ayurvedic” beauty products failed to create the kind of impact they should have over the years.  Perhaps inauthentic-appearing brands, inferior quality products, or uncouth positioning simply became roadblocks in establishing a connection with shoppers. Additionally, the Indian consumer has been coaxed into believing that international products always bear unmatched quality. These notions explain why every cult international beauty brand’s launch in India is still celebrated.

However, in the last few years, the scope has evidently widened; India isn’t simply a stockist of international brands but has also witnessed the emergence of several homegrown ones. While players like Kama Ayurveda and Forest Essentials, which launched before 2010, and have successfully acquired funding from giants like Puig and Estée Lauder Companies respectively, have elaborate plans of transforming into a global sensation, there are brands like d’you, Aminu, Juicy Chemistry, Daughter Earth, Purearth, RAS Luxury Oils, Dearist, Pahadi Local, Ruby’s Organics and many others that have created a name for themselves by operating on a smaller scale, tightly holding on to quality. Slowly and steadily, the Indian consumer is taking notice of the offerings by such credible homegrown beauty ventures, and selectively investing in their products, if not entirely switching to them at once.

Having said that, we can’t turn a blind eye to Rare Beauty’s sell-out within a week of launching in India, or the all-prevalent joy when NARS came to Sephora India and Shoppers Stop last year. While the “made internationally” stamp still comes with a belief of quality, how, in that case, do these consecutive international brand launches fare for the homegrown beauty space? We ask key opinion leaders to find out more. 

An influx of international brands

With a population of over 1.4 billion, India’s beauty and personal care market was worth ₹1.98 trillion in 2022 and is set to grow year over year at an estimated compound annual growth rate (CAGR) of 11 per cent. The disposable income of the population has expanded exponentially too. “The per capita spend on beauty and personal care per annum in India is at $10 to $14, depending on the report you read. Compared to that, the number in the US, with one-third of India’s population, is $300. This just goes to show the room for growth in this industry,” shares Jigar Shah, co-founder, along with Deepika Padukone, of 82°E. International beauty brands are tapping into exactly that. 

In 2023, cult beauty brands like NARS, Laura Mercier, Urban Decay, Kylie Cosmetics, Rare Beauty, Farmacy, and Dr Dennis Gross launched in India through giants like Nykaa, Tira Beauty, and Sephora. Previously, in 2022, brands like The Ordinary, Byredo, and Caudalie also bet on India. In fact, just two months into 2024, we already have a line-up of exciting launches like Allies of Skin and Maison Margiela.

“Ever since we launched in 2016, we have had a lot of DMs and emails from Indian customers who wanted to try our products, asking us to bring them to India. So India was always on our wishlist,” shares Nicolas Travis, founder of Allies of Skin, which has exclusively launched with Tira Beauty. Along the same lines, Kadambari Lakhani, director, Baccarose Perfumes & Beauty Products, the distributor who brought Laura Mercier to India, says, “The Indian market has seen substantial growth, evident with an increased disposable income, dynamic lifestyle, and an ever-increasing awareness of personal grooming. There is a growing emphasis on beauty and wellness, and consumers are becoming more conscious about the ingredients in beauty products, looking for high-quality, innovative solutions. This then provides an opening for global brands that are known for their research and development. Laura Mercier as a brand has strong clinical and consumer claims to drive instant and overtime performance​ for their products. Having noticed ‘natural beauty’ as a trend on the rise​ and a growing desire for luxury products and advanced techniques, we felt this was the right time to bring the brand to the Indian market.”

Is international always better?

For Shamika Haldipurkar, founder of d’you, the growing tendency towards international brands made it an opportune time to launch a skincare line— one that’s at par with international brands. “Indian consumers didn’t have access to a lot of international skincare and make-up brands. So, whenever we travel abroad, or have someone travelling abroad, we would get our stash from Sephora or Cult Beauty. This became the seed to launch d’you. If there is consumer appetite in India for global quality brands, then why do we not have one in India?” asks Haldipurkar. Similarly, Shah talks about the learning he came across over the six-month course research period before launching 82°E. “There was always a choice consumers had to make between international brands with more science-based ingredients versus Indian brands which were Ayurvedic and more Indian ingredients-focused. Thus, we decided to combine them both in a bottle, using the purest ingredients,” he says.

For the Indian consumer, internationally-fabricated products may always not be the best. While the skin’s chemistry differs from region to region  in India itself, pertaining to the domain of skincare, even in the case of make-up, the requirement of colours, skin tones, textures and even application techniques are different from that in the West. “One area where homegrown brands will always have an edge is the focus on creating products that work perfectly for our tropical climate while using cutting-edge science to target specific concerns, unique to Indian skin. At Aminu, we blend the best of botanicals with high-grade biotech molecules, offering a harmonious fusion of ancient remedies and modern science. Our formulations are crafted for Indian skin moods, addressing concerns unique to our climate, lifestyle, and genetics,” says Prachi Bhandari, co-founder and head of research & development at Aminu. 

How do homegrown-brand founders feel about this?

“I think the arrival of international skincare players and healthy competition is a good thing for the industry. Not only do they bring a different perspective to the Indian market but also share with homegrown brands the role of educating customers about the importance of a good skincare routine and next-gen ingredients,” opines Bhandari. “As a consumer, I am ecstatic,” begins Haldipurkar, “This is an amazing time to be in India because the brands we’ve loved from afar are finally looking at India as a market. And it’s not a finite market; in the West, for example, there is a saturation from not only from a consumption but also a business perspective. In that sense, India is booming. And, Tier-2 and Tier-3 regions haven’t even been tapped fully.”

However, Haldipurkar is also cognisant that success is difficult to seize. “If you are launching in this industry thinking beauty is really hot right now, so let me make a quick buck, you won’t survive. There has to be a strong ‘why’ to your brand, there has to be storytelling for the consumer to connect with you. You can’t just survive on a one-time sale—it’s not just acquisition, it’s also retention. And thus, the advent of international brands is going to push homegrown brands to just put their best foot forward, which is a great thing.”

Bhakti Modi, co-founder of Tira Beauty, shares, “When we started Tira, we had a very simple mission statement—to have the most curated assortment of global and homegrown brands in the country. I think having international brands in India has given the homegrown beauty market the perspective that people want quality at every price point. This has increased the pressure on homegrown brands to deliver quality and not just have products rolling out based on a trend. To match quality to packaging to authenticity is a great outcome of the arrival of international brands.”

The homegrown beauty industry must buckle up

The consumption, and therefore demand, for beauty is ubiquitous in India, making it fertile ground to nurture both homegrown and international beauty brands. “In India, awareness has increased and people want quality; so if quality can be given by a homegrown brand, they go there. If the quality is given by a global brand they go there. While credibility is still on the spectrum of global brands because they’re made in Italy or France, and as we’re a follower market, I think India is catching up,” shares Modi. “I see competition a little bit differently; there’s enough room for all of us to achieve our dreams. But I also always take a step back and start with the ‘why’—why should people care, why should people spend their hard-earned money on my product. I will never create or launch everything or anything without first needing it in my routine,” says Travis.

“I think Innovation is key,” explains Shah. “That’s exactly why we set up our own R&D if you are not adding value to your consumers, they will read through the lines and you’re no longer going to be relevant. Just going to a third-party manufacturer to pick something from the catalogue is no longer going to work; you will have to get involved, understand your consumers, and build a solution that is formidable and adds true value to your consumers,” he cites. A big indicator for Travis to launch Allies of Skin in India now was the increased consumer awareness. “I think that people are so savvy these days. We have a lot of customers who are DMing us, wanting to know the molecular weight of the hyaluronic acid, to know what percentages it is, whether vitamin C is water-soluble or fat-soluble. This [engagement] is great as it allows all of us to create cooler stuff that delivers results,” says the founder. However, this also spotlights the need to push the boundaries of innovation, user-friendliness and customer satisfaction. And, this must trickle down to each channel of distribution.

Lakhani talks about how Laura Mercier’s first-ever boutique store, which is set to launch soon in Mumbai, aligns with what the customers wish for today. “Currently, consumers are looking for products that have high efficacy value and that are endorsed by known and reputable experts. Consumers want to see visible results and want to see them instantly. The willingness to pay a premium for such products has plenty of potential. The future of beauty would be more personalised experiences, which could become even more sophisticated.” This is precisely why Modi also invested a considerable amount of time and money into training the beauty advisors for Tira Beauty’s physical stores. “It’s all about authenticity right now. Going beyond the transactional model and connecting with the consumer is key as beauty is not a necessity but a want-based industry. If you can really connect with the audience from that perspective, and get your employees to think about it that way, and focus on micro needs versus the larger picture, I think it will help cohorting different types of consumer groups,” concludes Modi.

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