Estée Lauder, one of the biggest names in the beauty industry, is set to begin local manufacturing in India. In an exclusive interview with Stéphane de La Faverie, the executive group president of The Estée Lauder Companies Inc, he shared insights into the company’s plans for the Indian market.
The beauty giant has been operating in India for nearly two decades, introducing popular brands like MAC, Clinique, Estee Lauder, and The Ordinary. Faverie highlighted the company’s focus on creating smaller sizes of makeup to make products more affordable for Indian consumers. This strategy includes launching mini versions of products exclusively for the Indian market.
Faverie credited beauty e-commerce retailer Nykaa for revolutionizing the beauty and skincare industry in India by expanding distribution channels across the country. He noted that the pandemic led to increased interest in beauty and wellness products as consumers conducted in-depth research on these categories.
The Estée Lauder Companies are now gearing up to start local manufacturing in India in collaboration with a local partner. Faverie emphasized the importance of offering products at different price points to cater to a diverse consumer base. The company’s decision to produce locally aligns with its goal of reaching more consumers and providing affordable beauty solutions.
India’s beauty market has witnessed significant growth over the years, with the rise of the middle class and increased spending on prestige beauty products. Faverie highlighted the vast potential of the Indian market due to factors like population size, growing workforce participation among women, and the rapid expansion of beauty retail platforms.
The Estée Lauder Companies’ strategic investments in Indian beauty brands like Forest Essentials reflect its commitment to tapping into the country’s burgeoning beauty industry. Faverie mentioned that the company supports early-stage beauty startups through initiatives like New Incubation Ventures, in partnership with Nykaa.
Despite global challenges impacting sales, The Estée Lauder Companies remain optimistic about the growth prospects in India. Faverie emphasized the unique preferences of Indian consumers, particularly their interest in international brands with a local touch. The company’s omnichannel approach, combining physical stores and online platforms, aims to reach a wider audience across different regions in India.
As the beauty market in India continues to expand, industry experts predict a significant increase in market size by 2028. With a focus on innovation, affordability, and local relevance, The Estée Lauder Companies are poised to make a lasting impact on the Indian beauty landscape.