The Indian economy is resilient, consumers are ready for int’l brands: Shiseido
Shiseido, a global beauty brand, has set its sights on the Indian market, recognizing the nation’s resilient economy and the growing appetite for international beauty brands. Nicole Tan, President and CEO of Shiseido APAC, has expressed her confidence in India’s potential as an important market for the company.
Shiseido has recently introduced its makeup brand, NARS Cosmetics, in India. Tan’s optimism stems from her belief that the Indian beauty market is poised for substantial growth, with an expected double-digit Compound Annual Growth Rate (CAGR) over the next five to ten years. This growth is anticipated to result in a market worth $20 billion by 2025.
Shiseido’s journey in India dates back to 2001, and their continued expansion reflects their commitment to this burgeoning market. Nicole Tan shares, “We know that for the next five to ten years the Indian beauty market is going to grow at a double-digit CAGR, which is much more exciting and a much higher number than we’ve seen in many other markets in the world.”
Particularly encouraging for Shiseido is the upscale beauty segment, where they operate. In this segment, the CAGR is projected to be approximately 15%, making India a highly attractive prospect for many brands. The rising demand for prestigious beauty products is a testament to India’s growing affluence and its burgeoning middle class.
In recent years, young Indian women consumers have become increasingly exposed to international brands. This exposure is due to the internet, influencers, and increased travel opportunities. This exposure has fueled a desire for global beauty products.
Moreover, Shiseido recognizes the changing landscape of the Indian workforce and increasing income levels, making it an opportune time to introduce NARS Cosmetics. The Indian market now enjoys greater accessibility and reach through organized retail, aligning perfectly with Shiseido’s expansion strategy.
NARS Cosmetics will be available through various channels, including three shop-in-shop touchpoints at Shoppers Stop, ten Sephora outlets, and a free-standing store in Select Citywalk, New Delhi. Online shoppers can find the brand on Sephora’s e-commerce platform and Shopperstop.com. Shiseido plans to double its offline distribution reach next year.
The company is committed to keeping prices competitive, ensuring that NARS Cosmetics remains affordable for Indian consumers. To further enhance accessibility, they will introduce a range of mini-sized products with price points ranging from Rs 1,400 to Rs 1,800.
Nicole Tan also shed light on evolving consumer trends. The COVID-19 pandemic has prompted consumers to look for products that offer both skincare and makeup benefits, reflecting a growing demand for beauty solutions that cater to overall well-being.
Shiseido’s entry into the Indian market is a testament to the nation’s economic resilience and the willingness of Indian consumers to embrace international beauty brands. The company’s strategic approach and recognition of the changing market dynamics are likely to contribute to their success in India.
