NEW DELHI — Marking its entry into the Indian beauty market, Danish brand Gosh Cosmetics opened its first point of sale at the DLF Emporio mall in New Delhi in February. The brand has an ambitious plan to open 200 more points of sale this year.
With more than 179 stockkeeping units launching, Gosh enters the beauty segment priced between 200 and 900 Indian rupees, $4.07 to $18.31 at current exchange, a space with most growth potential in the Indian beauty market. It will compete with brands like L’Oréal Paris, Revlon, Chambor and Colorbar cosmetics, among others.
According to analysts, this midmarket arena is far more open to experimentation than ever before. In addition, the Indian beauty consumer’s appetite for foreign brands is also strong, especially in the color cosmetics channel.
Related Articles
“Our research indicates that the Indian cosmetic industry is expected to remain on its growth track in coming years,” according to a report by research company RNCOS. “It is anticipated that the industry will grow at a CAGR [compound annual growth rate] of around 17 percent between 2010 and 2013. The future growth will depend on increasing disposable income of middle-class families. Besides improving literacy rate, advertising and promotion of cosmetic products, rising awareness about personal care and western culture influences will further fuel growth in the cosmetic market.”
Gosh cosmetics, which sell in more than 50 countries, is distributed by KPA Cosmetics Pvt. Ltd. in India, a new company, which plans to market the brand solely through gondola-style stand-alone areas in malls and department stores throughout the country.
“We plan to have a market capacity of $20 million in the next three years,” said Alok Dubey, director of KPA Cosmetics, who has spent several months training with the brand and is adept at both the business numbers as well as application of the products. “The Indian customer is looking for more variety. This year we are going to start with a variety of orange trendy shades, which are popular with Indian women.”
Dubey’s plans include offering various levels of customization for the Indian beauty customer. He also said that the first Gosh salon would be launched this year, bringing with it skin care, hair care and body care products. At this time, only Gosh color cosmetics are being introduced at retail. Another innovation for the Indian market comes in the form of a 5-ml. size for nail polish, priced at $2.50. The 15-ml. nail polish will retail for $4.10.
“Most of our products are approximately 5 percent less than L’Oréal Paris,” said Dubey.
Dubey also expressed his admiration for the way Lakme, a homegrown brand initiated by Hindustan Unilever, has progressed, and said he hopes to expand in a similar fashion, with the introduction of salons and by creating a strong positioning in the Indian customer’s psyche.
Euromonitor has forecast that the color cosmetics market in India will continue to grow in high double digits, giving brands such as Gosh hope that the Indian consumer can still be wooed away from Unilever-owned Lakme and Revlon, which have a stronghold in the market.