Posted on : 2023-07-02 20:42:16
Article : Good morning, Monday Management solution for TASK 248- The booming Indian cosmetics market is stormed by home-grown brands that promise to pamper Indian skin with the goodness of local, natural and organic products.
The fact that Indian beauty brands big and small have flourished in the last five years and the entrepreneurial spirit is alive and kicking, this bodes well for the Indian economy too. Indian beauty brands continue to harness the power of natural blends and organic ingredients, to create products that look good, and more importantly, feel great. Not only can they rival their foreign counterparts on quality and beauty benefits, but they’re also much more affordable, accessible and at the end of the day, beneficial for our economy.
This concept of home-grown small time natural ingredient-based cosmetics has come from tiny stall at Mumbai’s Lil Flea Market in April 2018, Desiree Pereira, Shivangi Shah and Lakshay Mohendroo hoped that their matte lipsticks would find a few takers at least. That weekend, they sold over 300 pieces and instantly knew their decision to give up their jobs as researchers in the cosmetic industry and bootstrap their own beauty venture had been the right one. Today, their company, the Mumbai-based Disguise Cosmetics, has through word-of-mouth snagged a faithful clientele that swears by the ‘vegan and cruelty-free’ beauty products.
The seven-year-old Gurugram-based beauty products manufacturer SoulTree, for instance, wanted to create a sustainable demand for organic herbs grown by small farmers, especially women, in Uttarakhand. “This led them to develop a beauty and personal care line made from these herbs. They also saw a complete absence in the Indian market of a genuine certified natural and organic beauty brand and felt that this would be pioneering a trend in the right direction.
Leading cosmetologists and dermatologists have also ventured into the manufacturing of skincare products suited to Indian skin types and without harmful chemicals. Mumbai-based cosmetic scientist founded Dr Sheth’s in 2016 to manufacture a line of products that are vegan, and sulphate-, paraben- and phthalate-free.
When we come to investments in such enterprises it reveals very interesting aspects. Begun on their own steam and starting out small, many of the home-grown beauty product companies relied on their own funds in the initial years. Daughter Earth of Hyderabad in 2018 have invested their personal savings of Rs 15 lacs, while the founders of Disguise Cosmetics invested their savings of about ₹10 lakh to get going. Neemli Naturals was started in 2015 with an investment of just ₹2 lakh, but relaunched in May 2018 with an investment of ₹1 crore. But investors have quickly latched on, sensing the inherent potential in this segment. Launched in 2014, Coimbatore-based Juicy Chemistry was entirely bootstrapped and notched up sales of ₹17 lakh in the first year. Five years down the line, a senior director and board member of Chennai-based Raj Petro Specialities, infused ₹4.5 crore and the company is projected to register a ₹15 crore turnover this year.
Nearly all the companies advertise their use of natural ingredients sourced from across the country and even the world as a differentiating factor. Their other claim is their use of tests, trials and research and development to improve existing products and launch newer and better ones. But who exactly is in charge of certifying these products as natural, organic, vegan, and so on? There is no one certifying agency in India and the manufacturers usually approach various international accreditation bodies. PETA [People for the Ethical Treatment of Animals] issues the Cruelty Free Certification, while Brussels-based COSMOS, an international and independent association, issues certificates for natural and organic products that meet its standards. BDIH (the German Association of Industrial Companies and Trading Firms for pharmaceuticals, healthcare products, food supplements and personal hygiene products) is another popular accreditation body.
Endpoint- It is the necessity that opens an opportunity for a business variant, one such thing is Natural cosmetics business with vegan- natural- cruelty free cosmetic products. Though not custom made for individuals these chemical free cosmetic products business makes a volume for itself with the large customer base and their proven purchases.
Log on to www.wingsofmanagement.com to know more about our “Strategy Management consultancy’s” versatile capabilities, global clients and to read our weekly posts and our project