International cosmetics brands set up their own boutiques in India
Despite the size of the country and its potential, India is one of the most challenging markets for the major international luxury cosmetics brands. According to L’Oreal India over 3 quarters of purchases of fragrances and beauty products by Indians are made abroad. The 40 percent tax on beauty products is another major deterrant for luxury cosmetics brands in India, where, for instance L’Oreal’s luxury division accounts for only 5% of its turnover, compared to 40% in the rest of Asia.
In the absence of department stores and specialized retail chains (none of the major international players such as Sephora or Marionnaud are present in India), international cosmetics brands are pursuing a strategy to open stand alone boutiques for their brands. LOreal has recent’t inaugurated a boutique for its Lancome brand at the Palladium Mall in Mumbai, joining other mono-brand boutiques of Chanel and Estee Lauder.
adapted from Le Figaro