Events & Issues
New Delhi, 18 February 2016
India’s Beauty Business
HIGH EMPLOYMENT
POTENTIAL
By Oishee Mukherjee
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 a demand in the market is growing, be it cities,
semi-urban and rural areas.
Notably, rising affluence which has lead 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 artistes, cosmetologists etc. Add to this 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, specially 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 markets holding immense growth potential whereby new
products launches catering to consumers’ growing requirements is fueling growth
of the industry and its future seems exceptionally bright. According to a
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 Rs
34,200 crores even as others maintain it is about Rs 40,000 crores and is
slated to rise to over Rs 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 specialized hair care. An AC Nielsen report estimates the Indian
hair care market at Rs 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 Rs 1,000 to Rs 3,500 while the anti-hair loss programme could cost between
Rs 1,600-Rs 10,500.
Another segment expanding rapidly is bridal make-up.
Earlier, it was usually only the bride 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 the bridal package might cost around Rs 50,000
to Rs 2 lakhs for 10 people, which includes head-to-toe grooming and make-up.
Further, quality beauty treatment
calls for specialized 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 Rs 5,000-Rs 26,000 for learning basics
to Rs 30,000 to Rs 2.9 lakh for advanced training.
Specialized courses in cosmetology
cost between Rs 50,000 and Rs 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 academies 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 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 Rs 15,000 and Rs
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 products 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! ----- INFA
(Copyright,
India News and Feature Alliance)
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