High employment potential

The country’s cosmetic sector has emerged as one market holding immense growth potential whereby new product launches catering to consumers’ growing requirements are fueling growth of the industry and its future seems exceptionally bright.

According to the latest report, the cosmetics market registered impressive sales alongside rising purchasing power and growing fashion consciousness; the industry expanded at a 17 per cent annual growth rate during 2013-2015

In an increasingly professional world people are becoming very conscious about their looks and personality. Earlier, only a few women where concerned about their appearance and resorted to beautifying themselves, now, beauty has become a profession as the demand in the market is growing, be it cities, semi-urban and rural areas.

Notably, rising affluence which has led to many households upgrading to a higher consumption lifestyle, has resulted in an explosion in the Indian beauty space. According to the new socio-economic classification to gauge consumption patterns, Living Standard Measurement (LSM) there has been an 80-fold jump in growth in the consumption of beauty products and services from a low of LSM 1-4 to 8 plus.

Apart from mushrooming beauty salons employing many, there are consultants who work independently, namely hair stylists, grooming experts, bridal make-up artists, cosmetologists etc. Adding to this, there is an increase in the number of slimming centres frequented by women and young girls trying to shed their obesity and look slim.

Besides, there are others engaged in promoting innumerable products of major FMCG companies and lesser known ones at retail counters or through advertisement in the print and electronic media. Products on sale are for both males and females, which are selling well. Undeniably, people from even middle and lower income groups have become conscious of their looks, especially skin, hair etc.

Indeed, the wide array of products is finding acceptance in the market as the earlier notion about khubsoorati and the beauty business has changed completely. Consequently, girls are taking diploma or degree courses to equip them professionally.

In fact, the country’s cosmetic sector has emerged as one market holding immense growth potential whereby new product launches catering to consumers’ growing requirements are fueling growth of the industry and its future seems exceptionally bright. According to the latest report, the cosmetics market registered impressive sales alongside rising purchasing power and growing fashion consciousness; the industry expanded at a 17 per cent annual growth rate during 2013-2015.

Notably, the National Skill Development Council (NSDC) has pegged the beauty industry as worth over ` 34, 200 crores even as others maintain it is about ` 40, 000 crores and is slated to rise to over ` 80, 000 crores by 2022. Also, this sector would require an additional 10 million people between 2013-22.

One segment of this beauty business which is doing particularly well is specialised hair care. An AC Nielsen report estimates the Indian hair care market at ` 3, 630 crores with average annual growth of 20 per cent.
If truth be told, even the steeply priced L'Oreal's premium Kerastase treatment wherein a hair specialist examines a customer's scalp condition with a special camera before recommending appropriate hair care is becoming popular, with prices ranging from ` 1, 000 to ` 3, 500 while the anti-hair loss programme could cost between ` 1, 600-` 10, 500.

Another segment expanding rapidly is bridal make-up. Earlier, it was usually the bride alone who visited a salon prior to her wedding but now friends and relatives often join her with salons offering special packages for them. In big cities a bridal package costs around ` 50, 000 to ` 2 lakhs for 10 people, which includes head-to-toe grooming and make-up.

Further, quality beauty treatment calls for specialised knowledge, thus training schools are also proliferating. Most salon chains have their own academies. VLCC, for instance, runs 75 different courses, with fees ranging from ` 5, 000-` 26, 000 for learning basics to ` 30, 000 to ` 2.9 lakh for advanced training.

Specialised courses in cosmetology cost between ` 50, 000 and ` 3 lakh, depending on their length and nature. Even FMCG companies like HUL, whose Lakme brand has opened innumerable salons in recent months, is now tying up with a professional institute like Aptech to build training centers across the country that would train aspiring salon professionals.

This is not all. Some State Governments too run Beauty and Wellness Sector Skill Councils where various trainings in this business are imparted. Naturally, employment opportunities in the sector are increasing at a rapid pace. The KPMG Wellness Report estimates that the beauty and salon workforce requirements would grow from 3.4 million in 2013 to 12.1 million in 2022. Salaries of make-up and beauty professionals vary between ` 15, 000 and ` 65, 000 per month.

Regarding consumer behaviour analysis, it has been observed that consumers are increasingly shifting towards ‘natural’ and ‘herbal’ cosmetic products as they are associated with bio-active ingredients and safe for human skin. In addition to this, women are spending more on cosmetics to groom themselves.

Furthermore, rural India is also showing its willingness to look attractive. A study on the prospects of various segments, including hair and skin care, oral upkeep fragrance and colour cosmetics reveals the colour cosmetics market is growing at a rapid rate in comparison to other segments.

As for the international players already present in India , a slew of beauty product manufacturers have lined up to cash in on the beauty business boom in India. Although there has been some slowdown in the economy along with consumer spending on non-essential products and services, it has not stopped Indian women or men from putting on their best face.

Additionally, most of the international brands are trying to cash in on the huge appetite for foreign cosmetic brands in the country, thanks to increasing number of ladies entering the corporate workforce every year. On an average, working women tend to spend around 30-35 per cent of their income on themselves which is expected to increase steadily. Hail India’s riding beauties!