Japanese skincare brand Shiseido optimistic about market

Cosmetics maker Shiseido, the 143-year-old Japanese skincare brand, which had turned its attention to India’s middle class with its premium offering, is enthusiastic about the potential the market holds. The firm’s Za brand was launched in India by the Japanese firm’s wholly owned subsidiary in 2014.

With India’s luxury market growing faster than the BRICS’ average, several companies are seeing the immense potential here. Shiseido has witnessed an unprecedented arrival of major luxury products and services from all around the world in India over the past few years.

“India is a very promising market for most of the companies that wish to see growth and expansion. The young demographic, explosion of media and information, rising exposure to luxe brands, increasing middle-income group and the propensity to adopt global trends is much faster in this country than other emerging economies,” said Salman Bukhari, Marketing Director, Shiseido India Pvt Ltd.

Though traditionally international players have found India a great opportunity, it is also a daunting task considering the diversity and complications of operations, says Bukhari. He, however, insists the mindset is changing.

“The country, by itself, has also opened up a lot more in the past 20 years. Newer policies make international companies operate more efficiently in this favourable environment,” he added.

A report by the Confederation of Indian Industries had pegged the total Indian beauty and cosmetic market size at $950 million (₹6,072 crore) last year, growing at a healthy 20 per cent per annum.

High tax Bukhari insists luxury consumption is directly proportionate to the country’s economic outlook and inversely related to the taxation policies. “Taxes may have stabilised, but are still on the higher side,” he said.

Despite the high tax, Bukhari insists consumers are more willing to adapt to luxury brands. “There is increased awareness among the people here, helped by the penetration of media, which has enabled a willingness to modify one’s lifestyle to a more globalised pattern,” he said.

Age factor Commenting on the age group, Bukhari said, “Traditionally, luxury consumers come from the mid 30s age group. We are talking about mid-level and senior professionals.” Stating that the need for status and refinement is universal in consumers, young or old, Bukhari said there has been a tremendous shift in the consumer profile, as younger people in their mid-20s seek luxury. “The younger age groups seek to experiment a lot more with brands, and research more, as they have access to multiple sources,” he said.

The same holds true for India, where “there is no hesitation to spend, but there is a reluctance to be taken for granted. India now boasts of home grown brands and brands from international majors at multiple price-points. The Indian consumer wants the same or better luxury experience than their foreign counterparts,” he added.

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