COSMETICS INDUSTRY Industry Analysis

Presented by:

RAJPUROHIT RAMESHRAHUL GULAGANJI

Cosmetics: Cosmetics known as make-up, are care substances used to enhance the

appearance or order of the human body.

cosmetics as "intended to be applied to the human body for cleansing, beautifying, promoting attractiveness, or altering the appearance without affecting the body's structure or functions."

NAME: The word cosmetics derives from the “Greek κοσμητικὴτέχνη

(kosmetikētekhnē)”, meaning "Technique of dress and Ornament", from κοσμητικός (kosmētikos), "Skilled in ordering or Arranging" and that from κόσμος (kosmos), meaning amongst others "Order" &"Ornament”

INTRODUCTION

The manufacture of cosmetics is dominated by a small number of

multinational corporations

The India’s largest cosmetic companies are L’Oreal Paris, Procter &

Gamble, Hindustan Unilever ltd.

The worldwide cosmetics industry currently generates an estimated annual

turnover of US$380 billion (according to Eurostaf – May 2013).

INDUSTRY:

INTRODUCTION:

The market size of the cosmetics industry in India is estimated to be worth US$1.5 billion

It is projected to reach almost US$3.5 billion by 2016.

The industry has been growing at an annual rate of almost 20%

The Indian cosmetic industry's growth is twice as fast as that of the United States or

Europe

65% teenagers in India, their expenditure on branded cosmetics has increased 75% in the

past 10 years

India imports cosmetics, beauty products worth $400 US$ million per year

INDIAN COSMETIC INDUSTRY

INDIAN COSMETIC MARKET:

•Industry is growing at around 20%.•Rapid growth over last 2 decades.

Current growth Rate

•US$ 2.2billions in India

Market size

•Western India 28% share•Fastest growing region:- East & Northeast India

Largest market in

india

LAKME:

Introduced by Hindustan Unilever Limited in 1952.

Leading cosmetic brand in India.

Lakme products are Lipsticks, Nail Paints, Eye Liners, Face Wash,

Creams etc.

2014 Turnover touches Rs 160 crore.

MAJOR PLAYERS

PONDS: Brand of beauty and health care products.

owned by the multinational company Unilever

India’s TRA Study 2011, included Pond's in the most trusted brand

in India.

products are Lipsticks, Nail Paints, Eye Liners, Face Wash, Creams,

etc

2014 Turnover touches Rs 145 crore

PROCTER & GAMBLE: Procter & Gamble Hygiene and Health Care Ltd was incorporated in the

year 1964

Procter & Gamble products are Ariel detergent, fusion blade, Gillette

razors, Olay beauty care, head & shoulders shampoo, Oral-b dental

products, pampers disposable diapers, Vicks cough & cold products.

2014 Revenue is 8 billion dollar.

L’OREAL:

L’Oreal is a French Cosmetics Giant started in the year 1909

Leading brand in the cosmetic segment in India.

L’Oreal stands for quality, reliability and innovation.

L’Oreal makes a high quality cosmetic products like, Lip Sticks, Eye Liner,

Nail Colour, Creams, etc.

Emami: Emami Ltd.is an Indian producer of (FMCG),

The company is a Rs 1100 crore business entity

Their main product

• Hair Care

• Skin Creams , soaps and lotions

• Talcum Powder

• Ayurvedic Health Care Products.

2014-15 Turnover is 135 crore.

According to ASSOCHAM, India’s cosmetics market has been growing at

an annual pace of 20% and is expected to reach Rs.25, 000 crore by 2017.

According to ASSOCHAM Indian cosmetic market size will grow in next

2-3 years to around US$ 1400 million from current level of US$ 950

million.

"The market and customers are becoming very brand conscious with the

readiness to try new brands and products,“

MILESTONE & DEVELOPMENTS OF COSMETIC INDUSTRY

US-based Revlon was the first international cosmetics brand to hit Indian

stores in 1995.

"The current wellness market stands at approximately Rs.70,000 crore .

This number attracting a lot of international players to the Indian market,“

"India's cosmetics market is reportedly growing annually, twice as fast as

that of the US and European markets

According to RNCOS “Indian Skin Care Market Forecast to 2015”, people

in India gives more importance to branded products.

The cosmetic companies shifted their focus to the mass market, particularly in

the fragrance category which is dominated by mass brands in this region

The market share of the non-store retailing channel increasing in India in last 2-3

year.

Companies relying on direct sale managed to create a powerful sales network

the online channel’s share in the global cosmetics sales reached 15-20% in 2014,

while in the top three online sales markets - south Korea, France and united

states - it reached a level of, respectively, 22% to 25%.

21st CENTURY OF TRENDS

In the recent years a systematic change in the pattern of distribution channels was observed. These changes, which took place between 2000 and 2010, are presented in following table

Non Store Retailing

Drug stores Deparments Store

Beauty Specialist

Super Hyper market

All Others0

5

10

15

20

25

30

201220132014

The largest segment was haircare – it accounted for more than 20% of

global sales

In the period from 2000 to 2013 total cosmetics sales (beauty and personal

care products) more than doubled: from 25 billion USD to 82 to 90 billion

USD. In 2000,

The distribution structure is changing as well, as supermarkets and

hypermarkets as well as online sales channels increase their shares in the

overall market.