East India Owns It: Leading the Beauty Boom

East India's allure lies in its profound history, lively culture, and unparalleled natural beauty, making it one of the subcontinent's most enchanting regions. Despite accounting for less than a quarter of India's households, East India is fast becoming a focal point for cosmetic companies eager to launch and innovate (Economic Times). Commanding over a third of India's cosmetics sales, East India is swiftly rising as a powerhouse in the beauty industry. This remarkable statistic highlights East India's outsized influence and its immense potential as a prime hub for product launches and dynamic consumer engagement.

In the past year, over 186 million cosmetic items, including lipsticks, nail polish, and eyeliners, were sold across India's top 10 cities. Intriguingly, East India leads the country in makeup usage per person, with women in the region showing a strong preference for a wide range of shades, including darker tones that are less popular elsewhere (ET). While the southern region also shows a strong inclination, East India stands out with the highest penetration rates across these beauty categories.


The digital boom, & Youth demand

It’s the era of digital supremacy and with smartphone and internet penetration made easy, the dynamics of shopping have changed. According to the Brand Xcel 2024 Report, Online shopping emerges as the #1 retail therapy in urban India, resonating across both genders and all generations. More than a quarter of customers buy cosmetics online, with 28% making purchases through e-commerce platforms (ET).

Flipkart has discovered its strong presence in the East, where the per capita consumption of cosmetics surpasses the national average and this trend shows great potential for further growth, as rising income levels and a growing working population continue to fuel demand.

Furthermore, social media influence has overpowered the domain broadly. Platforms like Instagram, TikTok, and YouTube are shaping beauty trends and consumer preferences, making them vital channels for cosmetic companies targeting the region.

East India’s youth demographic is particularly noteworthy. Millennials and Gen Z consumers are driving the demand for cosmetics and personal grooming, characterized by their preference for experimentation, global beauty trends, social media influence, and a willingness to spend on premium products. (Brand Xcel 2024 Report).


Economic Uplift, Urbanization and Cultural forces

Encompassing states like West Bengal, Odisha, Bihar, and Jharkhand, East India has shown a significant leap in disposable income. According to a report by the National Statistical Office, the per capita income in West Bengal grew by 7.3% in FY2024, reflecting a burgeoning middle class with higher spending power. This economic uplift has spurred demand for personal care and cosmetic products (apart from many other aspirations), encouraging brands to tap into this lucrative market.

The expansion of retail infra in East India has also facilitated the growth of the cosmetic market. The sprouting of shopping malls and cosmetic stores is making beauty products a breeze to access. This wave of modern retail hubs is not just about convenience; it's crafting a buzzing shopping scene that lures beauty aficionados and everyday buyers alike. Thanks to this retail surge and savvy marketing, the latest beauty crazes and products are now just around the corner for everyone in the region.


Uniqueness, Local Ingredients & Cultural Influences

The regional beauty standards and preferences are unique everywhere, thereby necessitating tailored products. In East India, companies are leveraging local ingredients and traditional beauty practices, which resonate well with consumers. For instance, brands like Forest Essentials and Kama Ayurveda have successfully introduced products incorporating East Indian natural ingredients such as turmeric, sandalwood, and neem, aligning with the region's preference for herbal and organic beauty solutions.

Talking about cultural influences, the region's festivals and traditional ceremonies, such as Durga Puja, create a significant demand for a vast range of products leading to an overall economic uplift. Primarily, there is a profound emphasis on appearance; looking good and feeling good, which further drives sales of beauty products. Retailers and brands often launch special promotions and new products to capitalize on this festive period, further driving sales.


Strategic Marketing and Distribution

To capture the markets, strategic marketing and robust distribution efforts are crucial. Consequently, cosmetic brands are investing in extensive market research and strong distribution networks to ensure their products are accessible across both urban and rural areas. E-commerce platforms like Nykaa, Amazon and Purplle have made significant inroads in East India, providing a seamless shopping experience and reaching a wider audience, thereby aiding the cosmetic space to prosper there.

With its unique cultural heritage, growing economic power, and enthusiastic consumer base, the region is a buzzing hub for beauty innovation. Cosmetic brands, both local and international, are taking notice, launching products that cater to the specific preferences and trends of East Indian consumers. It's safe to say that the future of the cosmetics market in East India looks as bright and colourful as the palettes of its most ardent makeup enthusiasts.


Coffee Table Book 2024

Coffee Table Book 2024

Golden guide book for marketers

Golden guide book for marketers

Golden guide book for marketers

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USA

Market Xcel Data Matrix

5741 Cleveland street, Suite 120, VA beach, VA 23462

SINGAPORE

Market Xcel Data Matrix Pvt. Ltd.

190 Middle Road, # 14-10 Fortune Centre, Singapore - 188979

NEW DELHI

17, Okhla Industrial Estate Phase 3 Rd, Okhla Phase III, Okhla Industrial Estate, New Delhi,

Delhi 110020

Market Xcel Data Matrix © 2023 (v1.1.3)

USA

Market Xcel Data Matrix

5741 Cleveland street, Suite 120, VA beach, VA 23462

SINGAPORE

Market Xcel Data Matrix Pvt. Ltd.

190 Middle Road, # 14-10 Fortune Centre, Singapore - 188979

NEW DELHI

17, Okhla Industrial Estate Phase 3 Rd, Okhla Phase III, Okhla Industrial Estate, New Delhi,

Delhi 110020

Market Xcel Data Matrix © 2023 (v1.1.3)