SKIN CARE PRODUCTSThese are products designed to improve the appearance and feel

SKIN CARE PRODUCTSThese are products designed to improve the appearance and feel of skin. India skin care market is segmented into five categories such as facial care, body care, sun care, and hand care and other makeup removal & depilatory products. The skin care market makes up about 30% of all cosmetics sold which is the largest share of any category. Skin care products can be classified further by how they work and what they do. First, there are products that are left behind on the skin.

These include moisturizing products designed to improve the look and feel of skin. There are also anti-aging products that promise to get rid of the sign of aging skin (e.g. wrinkles). There are sunless tanners which change the color of skin. And there are over-the-counter drug products that protect from the sun, treat skin medical conditions, treat acne, and really reduce wrinkles. The other types of skin products are those designed to remove things from skin.

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This include cleansers like body washes, hand soaps, facial washes, toners, bubble baths and more. It also includes scrubs, masks, and exfoliation products. Shaving creams and depilatories can also be added to this group since they are designed to remove hair from the skinHAIR CARE PRODUCTSProducts for the hair are the second most popular type of cosmetic making up approximately 25% of sales. Like the skin care category, hair products can be further classified by how they work and what they do. The most frequently purchased hair products are those designed to remove things from the hair.

These are liquid shampoos which clean hair. There are specialty shampoos which qualify as over-the-counter drugs and include anti-dandruff shampoos, anti-lice products, and hair restoration shampoos. Hair conditioners are another type of product designed to be rinsed off but they also leave material behind to improve the look and feel of hair. There are also intensive conditioners, protein packs, hot oil treatments, and a wide variety of other specialty products that are supposed to improve the hair look and feel.A third type of hair product are those meant to be left in the hair. These products can help change the feel of hair but are primarily meant to help with the look of hair. The largest segment of these products are styling products including hair sprays, mousses, styling gels, putties, and more. There are also leave-in conditioners. A final category would be reactive hair products that chemically change the make-up of hair to change the way it looks. For straightening hair there are relaxer products. For making hair curly there are perms. And for changing the color of hair there are permanent, semi-permanent, and temporary hair colors.COLOR COSMETICSFor most people these are the types of products that they think of when you say the word cosmetic. Color cosmetics make up about 20% of the cosmetic market. This group includes products that remain on the skin and change the color and appearance. It includes products for the face like foundations, lip sticks, blushes, eye shadow, eye liner, and mascara. You could also include products for the nails such as nail polish, gloss, and all the product related to nail care. Color cosmetics are the most regulated of all cosmetics because governments around the world restrict the types of ingredients that can be used for colors. Some coloring ingredients that were used prior to the creation of the modern cosmetic industry were quite poisonous.FRAGRANCESFragrances and perfumes have been part of the cosmetic industry since before the 1600's. These types of products are meant to be put on to change natural body odor. They make up about 10% of the cosmetic market. They include perfumes, colognes and body splashes. And this group also includes body sprays which are aerosol versions of colognes.PERSONAL CARE PRODUCTSThe last category of cosmetic product are the other personal care products. This group makes up approximately 15% of sales in the market (depending on what products you include). These include oral care products like tooth paste, mouthwash and whitening products. It also includes deodorants and anti-perspirants although I suppose you could make a case that these could be classified as either skin care products or fragrance products.OVERVIEW OF GLOBAL COSMETIC INDUSTRYThe global cosmetic products market was valued at USD 532.43 billion in 2017, and is expected to reach a market value of USD 805.61 billion by 2023, registering a CAGR of 7.14% during 2018-2023.MARKET SIZE SPLIT BY TYPE Personal Care Color Cosmetics Perfumes Other MARKET SIZE SPLIT BY APPLICATION Hair Care Skin Care Make-up Fragrance OtherOVERVIEW OF INDIAN COSMETIC INDUSTRYIndians have had a long heritage of using cosmetics and beauty products. Past generations used home/backyard products like turmeric, sandalwood paste, lemon and aloevera gel for beautification and personal care Aesthetic makeup products, used since the olden days, have helped India fast-track its race to the position of the largest cosmetics consuming country in the world.The Indian cosmetics industry is majorly categorised into skin care, hair care, oral care, fragrances, and colour cosmetics segments. It currently has an overall market standing of USD 6.5 billion and is expected to grow to ~ USD 20bn by 2025 with a CAGR of 25%. In comparison, the global cosmetics market is growing steadily at 4.3% CAGR and will reach ~USD 450 billion 2025. This means that by 2025, India will constitute 5% of the total global cosmetics market and become one of the top 5 global markets by revenue.MAJOR PLAYERS LAKMEThe number one cosmetic brand in India is Lakme, belonging to Unilever, started by Tata on the request of the first Indian Prime Minister, Jawaharlal Nehru. Lakm© was started in 1952 and borrows its name from a French opera. It's the most preferred and widely used brand in this country and also loved by makeup artists. Lakme provides a wide range of products, maintaining quality and quantity. Their range begins from those affordably priced to the professional level range. Their range includes skin care products, makeup products, nail products etc. HIMALAYAHimalaya Herbals is also a very well-known Indian herbal cosmetic brand. Their wide range of products has almost everything from beauty to health care. The beauty range has skin and hair care products and also kajals in the makeup range. ELLE 18Elle 18 is a popular brand among young girls " college girls and teens. Their products come at very affordable prices and are high quality products, offered in various funky colors that attract young girls a lot. Their range like color pops, color bombs have the funkiest colors ever. Their range includes nail colors, eye colors, lipsticks etc.MARKET GROWTHThe country's cosmetics and cosmeceutical market is expected to register annual growth of 25 per cent touching USD 20 billion by 2025, according to industry experts here. The rising awareness of beauty products, increasing premium on personal grooming, changes in consumption patterns and lifestyles and improved purchasing power among women are expected to boost the industry. The Indian industry is growing rapidly at a rate of 13-18 percent, more than that of US of European markets. GST IMPACTThe government of India implemented the Goods and Services Tax (GST) on 1 July 2017. Impact on beauty and personal care products following GST implementation.Bath and shower: Bar soap to register comeback, premium end to be hitThe Indian market is dominated by bar soap, which made up 89% of all bath and shower value in 2016. However, growth rates for bar soap have steadily dropped over the past three years. Alternatives such as body wash/shower gel had started gaining popularity with leading brands Dove, Lifebuoy and Nivea focusing on these products to tap into the premiumisation trend.The premiumisation trend within bath and shower may be set to change with the implementation of GST. Categorising bar soap as a necessity product, tax for bar soap under GST was brought down to 18% from prevailing rate of 24%. Bar soap has low price elasticity, hence represent one of the least price-sensitive beauty products in India. Bar soap already has a significant price advantage on body wash/shower gel. GST rates are going to further increase this price gap between the two categories and lower-income consumers are expected to switch back to bar soap. This is expected to boost volume consumption of bar soap by an additional 4,000 tonnes in 2018 as average unit prices are expected to be reduced by leading players.Colour cosmetics: Cheapest brands have the most to loseThe safety and quality of the products are important to Indian colour cosmetics consumers, however more often than not, affordability and access is a barrier to choice. As a result, the market is highly fragmented, with 50% made up of local and sometimes illegal other brands, sold largely via grocery stores and local independent retailers.GST raises the tax on colour cosmetics from 24% to 28%, making even the cheapest of products more unaffordable. Since local players sit at the very bottom of the price spectrum and are not desirable but simply attainable, this could benefit international players in the mass/masstige segments, notably Unilever's Lakm© brand.Greater market consolidation could occur as a result and bolster loyalty to those established brands with a notable but not leading market share (eg ranked 6-10), including Colorbar, as consumers appreciate their relative value.Hair care: Cue for international players to innovate in hair oilsThe majority of hair care products in India have been burdened with a higher tax rate, from around 24% to 28%, whereas hair oils (under conditioners), the largest contributor to hair care sales in India, will benefit from a decrease to 18% as it has been classified as a necessity product. Euromonitor's forecast model predicts that the drop in tax rates on hair oils is expected to drive up consumption to the tune of 2.3 million litres in 2018.In fact, many international players could suffer on the back of GST because they lack presence in the lucrative and now cheaper, hair oils category, where local companies reign. Unilever, for example, is the market leader of the overall hair care market in India but solely because of its 50% market share in shampoos, whereas it has just 3% of the conditioners (oils) category.In order to capitalise on the lower tax for hair oils and their increased affordability for the everyday consumer, international players could tap into the premium end of this market by targeting urban consumers with oils formulated with more sophisticated ingredients such as argan, jojoba, camelia and almond among others.SKIN CARE FROM THE EARTHThe skin category continues to explode with more natural, clean and even food-standard products. There is a perception that skin and mind are linked and there's a connection between skin care and wellness. It's the opposite direction from where makeup is going.Customization and Personalization: Using data and customer input to create products for a universe of one is a new form of luxury. TYPES OF PROMOTIONCosmetics are used to enhance the natural beauty of a variety of individuals, so it's no wonder cosmetic companies have to come up with creative promotional ideas to entice different types of consumers to try their product lines. One important aspect of a makeup promotion is that it offers potential customers an opportunity to experience the brand on their skin through sampling. OFFER MAKEOVERSSet up a stall at a mall or at department store where you can provide free consultations to customers. Have plenty of products available for purchase. Another option is to have a weekly free makeover contest. PACKAGINGBy placing your product in pretty packages, you can attract more customers to it. Highlight the aspects of your line that make it different from other products; for example, list the different colors that your makeup line consists of on the packaging or the sun protection aspects of the product. Consider packaging some products together in a set to increase sales. USE SOCIAL MEDIA AND THE INTERNETWhile many companies can benefit from the use of social media to connect to potential customers, social media is ideal for the makeup industry because of the visual aspect of the products. Make a series of how-to videos and post them to the web. Write a blog about makeup and feature people wearing your products. Post pictures to your other social media accounts. Send a weekly or monthly newsletter to inform customers about new products or discounts. DEALSPeople are ecstatic when they think they are getting a good deal. You can offer deals to customers to motivate them to buy, including buy one, get one free deals; buy one, get one half off deals; AND a free gift with purchase option. WORKSHOPSHost workshops in which you educate potential customers about skin care and makeup application. Explain how to dress up a day look to an evening look with a few quick changes. Discuss how a person's wardrobe and makeup correspond. Demonstrate how makeup products work and proper application techniques by having a model on hand. As an alternative, ask a member of the audience to volunteer for the task. GIVEAWAYSSend potential customers free samples of your product. Also, host a monthly giveaway for a basket of free cosmetic products that you advertise on your website or social media accounts. Give customers a certain number of entries based on the number of purchases they make.CELEBRITY ENDORSEMENTSOrganizations seek to create the concept of brand loyalty in their customers' mentality. Companies seek to protect their existence as well as maximize their profitability. Various marketing techniques are being used to enhance this concept. In recent years the idea of using celebrities in a brand advertisement is being more and more applied in the purpose of strengthening the brand image, creating a psychological attachment with the customer and thus creating a long term brand loyalty. Celebrities are being presented in all kinds of advertisements from primary goods to luxury ones. These ads are highly accessible whether in magazines, billboards, newspapers, TV channels or even social media ads.The choice of the celebrities is not only based on their popularity rate but also on how much they contribute in transferring what they represent. They are involved in creating an intended image by presenting an aspect of their personality thus shaping the perception of the customer towards the brand. In order for the endorsement to be successful, there are three different attributes the celebrity needs to communicate to the consumers. These are; 1. Credibility 2. Attractiveness and 3. Powerwhere Credibility is represented by knowledge, skills and expertise concerning the products,Attractiveness includes likeability, familiarity and similarity, and Power enables the endorser to affect the consumerCelebrity endorsement is highly used in cosmetics ads where the company intends to transfer to the customers the perfection, beauty and elegance the celebrity presents. Marketers seek to urge their clients to buy their brands in order to reach the satisfaction of sharing the same product that a certain celebrity presents. Customers' attitudes regarding brands and products are well enhanced by celebrities, but whether it generates repeat purchase intention and brand loyalty is not so clearProducts associated with celebrities appear to have a greater impact on consumers than products that have never previously been associated with a celebrity. However, using testimonials by famous people simply because of the power the technique offers, without concerning oneself with the appropriateness of the message leads to a loss of credibility by breaking contact with realityThe personality chosen to make the endorsement must have specific characteristics, which will vary depending on the company's business sector and, in addition o these, must actually consume the product they advertise because otherwise the celebrity's seal of approval will end up selling the product, but will not contribute to building brand identity due to a lack of consistency. Therefore, successful campaigns are the result of correctly matching the celebrity and the message to the brand, because, when both celebrity and brand have values and followers in common, the benefits are multiplied, both for the brand and the celebrityPROS BUILDS CREDIBILITYPeople are attached to their favorite celebrity, and they are generally well-trusted by their fans. If they use your product, it shows their fans that it is a product worth using and builds trust in your brand. Seeing a celebrity attach their name to a product also reassures consumers of the quality of your product. The celebrity would be at risk for damaging their reputation if they endorsed a product that's quality was lacking. MAKES YOUR BRAND STAND OUTUsing a celebrity to represent you helps to differentiate your brand from competitors. It also can improve ad recall, making consumers remember your ad and that your brand is connected to their favorite celebrity. OPENS UP NEW MARKETSChoosing the right celebrity can open up your brand to new markets. For example, when Nike wanted to expand from primarily sponsoring tennis and track, they partnered with Michael Jordan " and this partnership has been so successful it has expanded into its own subsidiary company.CONS CELEBRITY IMAGES CHANGEWhen you sign on a celebrity to endorse your brand, you sign on to everything that comes with them. While this usually means bringing in some of their fan base as customers, it can lead to disaster if a scandal occurs. A prominent example of this was Tiger Woods in 2009, when rumors of his infidelity surfaced and brands began to drop him as a sponsor to avoid the backlash from consumers. Nike didn't immediately release him as a sponsor and lost customers as a result. THEY MAY OVERSHADOW YOUR BRANDIf a celebrity is too big, their popularity might instantly overshadow your brand. If the ad focuses too much on the celebrity, it can cut out brand recognition in the minds of consumers.[3] This can also become a problem if a celebrity is endorsing multiple products at the same time, as they might see the celebrity and associate it with another brand. ENDORSEMENTS ARE EXPENSIVEThis may seem obvious, but getting a celebrity endorsement typically requires shelling out a pretty substantial chunk of money. Pepsi decided it was worth the price when they signed on with Beyonce for a whopping $50 million 10-year endorsement contract, but if you aren't a multi-billion dollar company, it's important to assess if the increase in consumer interest and revenue is worth the cost of the endorsement.BRAND LOYALTY