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India Quarterly: Guerlain Enters the Indian Market

By: Priyanka Bhattacharya
Posted: April 2, 2008, from the April 2008 issue of GCI Magazine.

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According to the company, its strong channel network and push strategy has worked in its favor. It has also spent substantially on advertising. Unlike the average spend of 12% of sales on advertising in the fast-moving consumer goods sector in India, L’Oréal spends slightly more than 30% of its sales on global advertising. The company has adopted a six-pronged approach for growth—technological innovation, creation of blockbusters, product value enhancement, brand power, globalization and acquisition.

Although L’Oréal’s share of the Indian market is relatively small, with $15.8 billion in sales, it is growing. And, along with other emerging economies, India’s contribution to the growth of the global cosmetics market amounts to 60%, according to the company.

Expos: The Indian Success
The fact that the Indian beauty market is booming is evident by the number of beauty expos that are being held in the country. Major events such as in-cosmetics India, Professional Beauty India, and Asia Spa and Wellness Expo saw successful participation, both in terms of exhibitors and visitors.

Held in Mumbai, in-cosmetics hosted 1,659 unique visitors, an increase of 6% over 2006. Out of the 91 exhibitors present at the show, 61% were international companies—including Clariant, Cognis, Croda, Dow Corning, Gatefossé, Jos H Lowenstein & Sons and Solabia.

“With its abundance of raw materials and the local industry’s thirst for scientific knowledge and practical know-how, India is the ideal platform for in-cosmetics,” said Elisa Seminari, exhibition manager, in-cosmetics India. “And on the evidence of our research, we are in the driving seat to capitalise on this multifaceted and fast-developing market.”