As one million young adults enter the job market every month, India’s growing thirst for luxury products is unrivalled, according to a report in the Hindu Business Line, offering enormous potential for prestige cosmetics brands looking to reach new consumers.
With a compound annual growth rate of 18 percent, the Indian luxury market is expected to reach a value of US$15 million by 2016, fuelled by a rapidly growing urban middle class and an explosion of media and information contributing to greater exposure to luxury brands.
Prestige cosmetics companies are now stepping off the beaten track in search of new consumers. “The larger the city, larger the potential. So the metros, especially Dehli NCR, Mumbai and Bangalore do have the highest contribution. But there is another big market in Tier 1 and 2 cities that seeks luxury,” explained Salman Z Bukhari, Marketing Director at Shiseido India.