Description
Documentation on retail market of cosmetic retailing covers Indian Cosmetic Sector Analysis, survey market research.
Retail Marketing Proposal Study of Cosmetic Retailing
Overview of the Industry: The Indian economy is on a high growth drive, which means that purchasing power and willingness to spend are on the rise. It also means big changes are coming to retail there. According to a recent Merrill Lynch and Capgemini’s Asia-Pacific Wealth Report, there are more millionaires coming from the emerging markets than from the developed nations. The country’s population of high-net-worth individuals (HNI) is increasing, and the report shows an increase of nearly 20% in 2005 over the previous year. India reportedly has the youngest HNI population in the Asia-Pacific region. In fact, more Indian women in age group 25 to 45 are also in the HNI category. With increasing globalization, the young Indian woman has realized the importance of always looking good. All this has translated into a demand for high-quality and high-end skin care and color cosmetics. This awareness has been developing throughout the past five to six years, and industry experts believe that 2006 was the year when the Indian skin care and cosmetics market attained a certain level of maturity. Both skin care and color cosmetics have seen steady growth throughout the past five years. Color cosmetics have been growing at a steady rate of more than 30% annually during this time. According to the latest Euromonitor report on the Indian cosmetics and toiletries market, the color cosmetics market stands at $113.4 million and skin care at $346.9 million. In India today, the increasing number of women in age group 22 to 45 are becoming independent, have disposable income and the decision-making power to buy what they want. This emerging category has caught the attention of leading global luxury brands, with most in the process of either setting up or expanding their presence in the market. The Indian cosmetic Industry has witnessed rapid growth in the last couple of years, growing at a CAGR of around 7.5% between 2006 and 2008. With improving purchasing power and increasing fashion consciousness, the industry is expected to maintain the growth momentum (with marginal slowdown due to economic slowdown) during forecast period (2009-2012). It is projected to grow at a CAGR of around 7% during the forecast period, says "Indian Cosmetic Sector Analysis (2009-2012)", a recent research report by RNCOS, Both electronic as well as print media are playing an important role in spreading awareness about cosmetic products and developing fashion consciousness among the Indian consumers. With the introduction of satellite television and a number of television channels as well as the Internet, the Indian consumers are constantly being updated about new cosmetic products, translating into the desire to purchase them. Additionally, the flourishing Indian fashion/film industry is fueling growth in the industry by making Indians to realize the importance of having good looks and appearances. Despite the massive surge in the popularity of cosmetic products, the report finds that the average consumer spending on cosmetic products in India is much lesser than any other part of the world. This implies that the Indian cosmetic industry has an even greater potential for growth in future than present. At present, most of cosmetics manufacturers in India cater to the domestic market but they are gradually establishing their footholds in overseas markets. In recent years, the Indian
cosmetic manufactures have received orders from overseas markets; for example - Indian herbal cosmetic products have a tremendous demand in the international market. However, manufactures should not forget that the Indian domestic market is price sensitive and they need to work out innovative strategies to establish a foothold here. Thus the Indian color cosmetics and skin care market throughout the past two years has seen increased activity, fueling a growth of 20% last year, according to a recent study by the Confederation of Indian Industry. The market saw the entry of several brands, including MAC Cosmetics, Chanel, Givenchy, Versace, Red Earth, Body Shop, Christian Breton, ArtDeco and MAX Factor. In the premium segment, Chanel was a prime mover, entering the market in 2005 directly through a subsidiary instead of a distributor. Similarly, Estée Lauder set up its India office and brought in MAC Cosmetics for the professional and serious makeup users. Brands such as Givenchy and Versace set their sights on the Indian market through distributors. L’Oréal Luxury Division was launched in the country in January 2006. The company has started marketing Ralph Lauren and Cacharel brands.
Objective of the Project: This Project is aimed to observe the cosmetics buying behavior in retail chains. It also analyses the various consumer profile and the variety of products they purchase. This project would also help in analyzing the various retail mix that cosmetic retailers implement to enhance their sales
Rationale ( How the study would help and to whom ?) Organized cosmetics retailing is on the growth phase in India. Though there are very few exclusive cosmetic store in India. Consumption is increasing and retailers are finding new ways to attract the consumers. This study, by analyzing the customer movements in a cosmetic retail shop would help in understanding their behavior and buying pattern. It will help the retailers to place their products in a better way which would complement the consumer’s buying behavior. By analyzing the current trends and visual displays that the retailers use it would also suggest a change in their approach.
Methodology:
• • •
This research would include both Primary data collection and secondary study. Primary data would be taken directly through observation. Secondary study would be carried out through various other research papers and previous studies.
• • •
A random sample would be taken where various customers would be observed during various times. This is an exploratory study with a data analysis of the primary data which would be collected by observing consumer movement pattern across the retail store. A comparison between a cosmetics section in a lifestyle mall and a specialty store would be done in terms of product displays and consumer buying pattern.
References:
www.gcimagazine.com/marketstrends www.goliath.ecnext.com www.euromonitor.com/Cosmetics_and_Toiletries_in_India www.newsonretail.com/Indian-Cosmetic
http://findarticles.com/p/articles/mi_m3374/is_9_21/ai_54944199/
http://findarticles.com/p/articles/mi_m3092/is_n3_v32/ai_13456809/pg_2/? tag=content;col1
doc_594158088.doc
Documentation on retail market of cosmetic retailing covers Indian Cosmetic Sector Analysis, survey market research.
Retail Marketing Proposal Study of Cosmetic Retailing
Overview of the Industry: The Indian economy is on a high growth drive, which means that purchasing power and willingness to spend are on the rise. It also means big changes are coming to retail there. According to a recent Merrill Lynch and Capgemini’s Asia-Pacific Wealth Report, there are more millionaires coming from the emerging markets than from the developed nations. The country’s population of high-net-worth individuals (HNI) is increasing, and the report shows an increase of nearly 20% in 2005 over the previous year. India reportedly has the youngest HNI population in the Asia-Pacific region. In fact, more Indian women in age group 25 to 45 are also in the HNI category. With increasing globalization, the young Indian woman has realized the importance of always looking good. All this has translated into a demand for high-quality and high-end skin care and color cosmetics. This awareness has been developing throughout the past five to six years, and industry experts believe that 2006 was the year when the Indian skin care and cosmetics market attained a certain level of maturity. Both skin care and color cosmetics have seen steady growth throughout the past five years. Color cosmetics have been growing at a steady rate of more than 30% annually during this time. According to the latest Euromonitor report on the Indian cosmetics and toiletries market, the color cosmetics market stands at $113.4 million and skin care at $346.9 million. In India today, the increasing number of women in age group 22 to 45 are becoming independent, have disposable income and the decision-making power to buy what they want. This emerging category has caught the attention of leading global luxury brands, with most in the process of either setting up or expanding their presence in the market. The Indian cosmetic Industry has witnessed rapid growth in the last couple of years, growing at a CAGR of around 7.5% between 2006 and 2008. With improving purchasing power and increasing fashion consciousness, the industry is expected to maintain the growth momentum (with marginal slowdown due to economic slowdown) during forecast period (2009-2012). It is projected to grow at a CAGR of around 7% during the forecast period, says "Indian Cosmetic Sector Analysis (2009-2012)", a recent research report by RNCOS, Both electronic as well as print media are playing an important role in spreading awareness about cosmetic products and developing fashion consciousness among the Indian consumers. With the introduction of satellite television and a number of television channels as well as the Internet, the Indian consumers are constantly being updated about new cosmetic products, translating into the desire to purchase them. Additionally, the flourishing Indian fashion/film industry is fueling growth in the industry by making Indians to realize the importance of having good looks and appearances. Despite the massive surge in the popularity of cosmetic products, the report finds that the average consumer spending on cosmetic products in India is much lesser than any other part of the world. This implies that the Indian cosmetic industry has an even greater potential for growth in future than present. At present, most of cosmetics manufacturers in India cater to the domestic market but they are gradually establishing their footholds in overseas markets. In recent years, the Indian
cosmetic manufactures have received orders from overseas markets; for example - Indian herbal cosmetic products have a tremendous demand in the international market. However, manufactures should not forget that the Indian domestic market is price sensitive and they need to work out innovative strategies to establish a foothold here. Thus the Indian color cosmetics and skin care market throughout the past two years has seen increased activity, fueling a growth of 20% last year, according to a recent study by the Confederation of Indian Industry. The market saw the entry of several brands, including MAC Cosmetics, Chanel, Givenchy, Versace, Red Earth, Body Shop, Christian Breton, ArtDeco and MAX Factor. In the premium segment, Chanel was a prime mover, entering the market in 2005 directly through a subsidiary instead of a distributor. Similarly, Estée Lauder set up its India office and brought in MAC Cosmetics for the professional and serious makeup users. Brands such as Givenchy and Versace set their sights on the Indian market through distributors. L’Oréal Luxury Division was launched in the country in January 2006. The company has started marketing Ralph Lauren and Cacharel brands.
Objective of the Project: This Project is aimed to observe the cosmetics buying behavior in retail chains. It also analyses the various consumer profile and the variety of products they purchase. This project would also help in analyzing the various retail mix that cosmetic retailers implement to enhance their sales
Rationale ( How the study would help and to whom ?) Organized cosmetics retailing is on the growth phase in India. Though there are very few exclusive cosmetic store in India. Consumption is increasing and retailers are finding new ways to attract the consumers. This study, by analyzing the customer movements in a cosmetic retail shop would help in understanding their behavior and buying pattern. It will help the retailers to place their products in a better way which would complement the consumer’s buying behavior. By analyzing the current trends and visual displays that the retailers use it would also suggest a change in their approach.
Methodology:
• • •
This research would include both Primary data collection and secondary study. Primary data would be taken directly through observation. Secondary study would be carried out through various other research papers and previous studies.
• • •
A random sample would be taken where various customers would be observed during various times. This is an exploratory study with a data analysis of the primary data which would be collected by observing consumer movement pattern across the retail store. A comparison between a cosmetics section in a lifestyle mall and a specialty store would be done in terms of product displays and consumer buying pattern.
References:
www.gcimagazine.com/marketstrends www.goliath.ecnext.com www.euromonitor.com/Cosmetics_and_Toiletries_in_India www.newsonretail.com/Indian-Cosmetic
http://findarticles.com/p/articles/mi_m3374/is_9_21/ai_54944199/
http://findarticles.com/p/articles/mi_m3092/is_n3_v32/ai_13456809/pg_2/? tag=content;col1
doc_594158088.doc