Business The Indian women cosmetic market

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The Indian women cosmetic market is one of the emerging markets that is deemed to have high growth potential (Aaker & McLoughlin, 2010). Several factors can be attributed to the high growth of the cosmetic market in India that includes the continuous improvements of the cosmetic products as well as the introduction of new products as well as the raising cosmetic awareness among the women. Besides, the rising western influence, as well as the product promotional activities that feature female celebrities, have played a significant role in the increasing market of cosmetics in India. The cosmetic products are no longer restricted to use during special occasions, and therefore they have gained prominence as part of the women daily regimen. The women cosmetic products have been highly adopted in India, and this has contributed to the product to emerge as a high utility product within the past few years. The demand for the cosmetics among the women has dramatically increased mainly among the women who spend most of their time outdoors. The rise can be attributed to the increasing desire for the women to look more physically appealing as well as the rising number of women who are working in the Indian nation. Mary Kay being a potential investor in India and specializing in cosmetics is required to consider several factors to which are core to the success of her business.

Cultural Environment

The Indians are incredibly interested in personal care and beauty that can be attributed to the combination of the Indian culture and the influence of Bollywood in the making of the Indian cosmetic market both exciting and unique (Majumdar, 2010). The fact that the Indian culture allows for the women to use cosmetics to make themselves appealing gives a higher advantage to Mary Kay in her venture to the cosmetic business in India. Bollywood has played a significant role in exposing the women to the use of cosmetics due to the constant use of the females in the advertisement of products and therefore has contributed to the increased awareness of the use of the beauty products.

Economic Environment

There is a higher growth of the middle class women in India who possesses a higher purchasing power and as well who have developed a strong sense of fashion. The purchase of the beauty products in India has become more universal and not limited to the upper class alone , and this has seen the sales of the cosmetic products rise 4.75 billion US dollars in the year 2011 and expected to have a double-digit percentage growth in the next decade. The inflation rate of the country is not high and therefore the value of the Indian rupee against the US dollar that 71.85 Rupees is equivalent to 1 dollar. The value of the rupee indicates that the country’s economy is not expected to fall as the value has remained constant over time and this gives a Mary Kay a reason to set her investment into the region.

Technological Environment

The Indian technology has been on the rise making the country a potential techno hub in the future. The presence of technology companies in India have led to the growth, creation of jobs, increase in the access to resources, healthcare, and education (Barringer, 2015). The rise in technology has resulted in the decrease of poverty levels and as well led to the improvement of the people’s lifestyle. The presence of technology has led to the increased connectivity as well as the purchasing power of the potential customers leading to higher sales of products and services. Mary Kay, therefore, is favored by the technology to do her business as a majority of the prospective consumers of the cosmetic products are connected through technology, and this may lead to more sales.

Political and Legal Environment

The Indian government has been at the forefront of encouraging business investments within their country. The Indian government undertakes various political and legal reforms to make sure that the foreign investors are attracted to put their investments in the promising nation (Perry-Kessaris, 2016). The political environment of India has also improved post-liberalization, and therefore the inflow of foreign direct investments and political environment is expected to have a positive relationship.

The population of women who uses cosmetics is on the rise considering that the increased awareness across the media and the advertising agencies such as the Bollywood. Women between the ages of 15 to 45 are among those recognized as the largest consumer of the cosmetic products, and they contribute a significant proportion of the population. Religion, on the other hand, does not hinder the women from using cosmetics and the overall attitude of women on the use of cosmetics is on the rise as the usage of beauty products are becoming widely accepted globally and in the Indian cation.

Considering the favorable factors that favor the growth in the cosmetic industry in India, there is a need for choosing the right marketing approach for Mary Kay. In my opinion, the right strategy would be the adaptation of promotional messages as India’s technology has been amongst the fast growing and this has enabled the connection of thousands of potential consumers of beauty products to get connected. With a higher technological connection, the purchasing power of the consumers is increased making the demand of the cosmetic product be on the rise.

References

Aaker, D. A., & McLoughlin, D. (2010). Strategic market management: global perspectives. John Wiley & Sons.

Barringer, B. R. (2015). Entrepreneurship: Successfully launching new ventures. Pearson Education India.

Majumdar, R. (2010). Consumer behaviour: Insights from Indian market. PHI Learning Pvt. Ltd.Perry-Kessaris, A. (2016). Global Business, Local Law: the Indian legal system as a communal resource in foreign investment relations. Routledge.