DECODING THE INDIAN BEAUTY LANDSCAPE JUNE 7, 2023 1
“The future of beauty rests with a generation of creative entrepreneurs who see and experience it differently. My grandmother, Mrs. Estée Lauder, was a visionary businesswoman who pushed the boundaries of possibility as a female entrepreneur in the 1940s. Her challenger spirit and courage to challenge and change are what inspire us today. The most successful new founders will challenge today’s standards to build innovative, coveted new business models and products. India is at the forefront of this changing environment – a deeply-rooted heritage of beauty and wellness is being pushed forward with modern thinking, anchoring exciting new brands and companies. We are excited to see the future of beauty through the lens of India.” William P. Lauder, Executive Chairman, The Estée Lauder Companies 2
ABOUT BEAUTY&YOU Created by The Estée Lauder Companies’ New Incubation Ventures (ELC NIV) and launched in partnership with Nykaa, BEAUTY&YOU India is a first- of-its-kind program to find and support the next 2022 SNAPSHOT generation of beauty entrepreneurs in India. • Over 300 entries from across 50 Indian cities, the With one of the world’s most vibrant economies and a application pool included a multitude of beauty brands across categories – skin care, hair care, cutting-edge startup community, India represents an fragrance and color cosmetics. Some interesting exciting opportunity for the beauty industry. ELC NIV insights from the application phase: created BEAUTY&YOU India as a platform to support • Almost 50% of the applicants were skin care brands aspiring entrepreneurs with capital, mentorship, • 95% of the applicants had a sustainability mission in resources and key partners. place • 80% of applicants had a female founder as part of the founding team Our goal? To help accelerate and amplify the amazing • 25% of applicants were in the pre-launch category creativity of Indian founders who are approaching the market with a fresh take on what it means to be beautiful. www.beautyandyouawards.com @beautyandyouawards 3
CONTRIBUTORS THE ESTÉE LAUDER IDEX CAPITAL COMPANIES CINDY PALUSAMY NEW INCUBATION VENTURES (NIV) IS THE STRATEGIC EARLY-STAGE INVESTING AND INCUBATION ARM FOR THE ESTÉE LAUDER COMPANIES. NIV PARTNERS WITH FORWARD-THINKING FOUNDERS AND ENTREPRENEURS TO CREATE, FUND AND SUPPORT THE BEST EMERGING BEAUTY BRANDS AND BUSINESS MODELS THAT WILL SHAPE THE FUTURE OF BEAUTY. THROUGH THIS, IT ALSO BUILDS AN SHANA RANDHAVA CONTENT EDITOR ACTIONABLE PIPELINE OF DIVERSIFIED BRANDS AND NEW ENGINES OF GROWTH FOR THE ESTÉE SENIOR VICE PRESIDENT LAUDER COMPANIES PORTFOLIO. THE ESTÉE LAUDER COMPANIES INC. IS ONE OF THE WORLD’S SOHA JOSHI LEADING MANUFACTURERS AND MARKETERS OF QUALITY SKIN CARE, MAKEUP, FRAGRANCE AND HAIR ELC NEW INCUBATION VENTURES CARE PRODUCTS. THE COMPANY’S PRODUCTS ARE SOLD IN APPROXIMATELY 150 COUNTRIES AND TERRITORIES UNDER BRAND NAMES INCLUDING: ESTÉE LAUDER, ARAMIS, CLINIQUE, LAB SERIES, PHOTOGRAPHY ORIGINS, M·A·C, LA MER, BOBBI BROWN, AVEDA, JO MALONE LONDON, BUMBLE AND BUMBLE, DARPHIN PARIS, TOM FORD BEAUTY, SMASHBOX, AERIN BEAUTY, LE LABO, EDITIONS DE PARFUMS FRÉDÉRIC RYAN PIELA DOLLY DEVI MALLE, GLAMGLOW, KILIAN PARIS, TOO FACED, DR.JART+, AND THE DECIEM FAMILY OF BRANDS, EXECUTIVE DIRECTOR INCLUDING THE ORDINARY AND NIOD. @DOBLIST ELC NEW INCUBATION VENTURES LINKEDIN: @ NIV-ELC . INSTAGRAM: @ NIV_ELC FOR NEW INCUBATION LAUREN WISNIEWSKI VENTURES, PLEASE CONTACT: MANAGER NIV@ESTEE.COM ELC NEW INCUBATION VENTURES 1LATTICE IS A TECHNOLOGY-ENABLED DECISION SUPPORT ORGANIZATION. OUR MISSION IS TO DISRUPT BUSINESS DECISIONS THROUGH AI/ML AND PRODUCE MEANINGFUL INSIGHTS WHICH CAN BE TRUSTED BY DECISION-MAKERS. WITH A HOLISTIC APPROACH FOCUSING ON THE ‘WHAT AND WHY’, 1LATTICE STANDS FOR THE ‘ONE-NESS’ OF DATA AND THE PEOPLE NETWORK. 1LATTICE IS 1LATTICE YOUR 360-DEGREE BUSINESS DECISION SUPPORT PARTNER WITH A TECH-ENABLED SERVICE STACK ROMA DIXIT OF CONSULTING, ADVISORY, AND RESEARCH. POWERED BY ADVANCED TECH TOOLS AND UNIQUE DATA-GATHERING APPROACHES, IT’S YOUR ONE-STOP SHOP FOR STREAMLINING ALL YOUR KEY DIRECTOR BUSINESS PRACTICES. WWW.1LATTICE.COM NIDHI GUPTA SENIOR ASSOCIATE IDEX INVESTS, INCUBATES AND ACCELERATES FAST GROWING, EMERGING BUSINESSES AND ABHISHEK SHARMA TECHNOLOGY PLATFORMS WITH A FOCUS ON PRESTIGE CONSUMER BRANDS ACROSS MULTIPLE SENIOR ASSOCIATE PLATFORMS. IDEX LEVERAGES A SIGNIFICANT PROPRIETARY DEAL FLOW ALONGSIDE A UNIQUE SCREENING PROCESS AND DEEP TECHNOLOGICAL DILIGENCE TO SPOT THE RIGHT OPPORTUNITIES. ALONGSIDE OUR INVESTMENT, OUR TEAMS CREATE, BUILD AND SCALE. WWW.IDEXCAP.COM Any views and opinions expressed by interviewees in this report are those of the authors and do not necessarily reflect or represent those of The Estée Lauder Companies. 4
EXECUTIVE SUMMARY 5
With a higher degree of consumer awareness than ever and an influx of options unlike anything that the market has seen, India represents an exciting opportunity for the global beauty ecosystem. We set out to spotlight the biggest trends and most interesting insights to help entrepreneurs innovate for the future. Shana Randhava, Senior Vice President, Estée Lauder Companies New Incubation Ventures 6
EXECUTIVE SUMMARY Created by the Estée Lauder Companies' New result-driven products for acne and breakouts and Incubation Ventures, BEAUTY&YOU is a first-of- customers over the age of 40 preferring simpler, its-kind program to discover, support and nurture less experimental products for age-related the next generation of Indian beauty entrepreneurs concerns such as wrinkles and fine lines. DECODING and creatives. Developed in partnership with 1Lattice, a Gurgaon-based, technology-powered The recent surge of discussion around sunscreens business insights organization, this report explores has prompted it to emerge as one of the fastest the factors impacting India’s BPC market which is growing subcategories along with serums under the THE INDIAN currently valued at over $16.8B. Skincare category, which in itself is the top-used product category, closely followed by Cosmetics A higher degree of consumer awareness and an and Nutraceuticals. Haircare has also seen a influx of options unlike anything the industry has paradigm shift post-Covid, largely due to the hair BEAUTY seen before has prompted a deeper shift into what issues that impacted many BPC shoppers in this was once a relatively straightforward business of period. helping customers look beautiful. In the next five years, India’s Beauty & Personal Care (BPC) market With over $1.3B dollars share in the Indian BPC LANDSCAPE is set to grow at a CAGR of 11%, with Cosmetics market by distribution channel, E-Commerce and Perfumes poised to be one of the fastest- remains as the top channel for product discovery “It is exciting to see emerging markets like India growing segments due to the dynamic presence of and is expected to grow at a CAGR of 30% beauty influencers on social media, an influx of between FY 2022 and FY 2027, followed by Health demonstrate such strong growth and present new cutting-edge, new-age brands and the rapid and Beauty Specialists and the Modern Grocery opportunities. With a growing middle class, an incredible expansion of the e-commerce industry that will give Retailer. This rapid growth of online distribution start-up ecosystem, and a digitally-savvy population, customers easy access to brands. A focus on channels is primarily due to the surge in digital India is pushing the future of beauty forward in new and personal care and hygiene is also a major adoption, as well as the convenience that online exciting ways.” contributor to the surge in perfume brands. platforms offer. Both Modern Grocery Retailers and Health and Beauty Specialists are expected to grow India’s BPC shoppers are driven by their functional at a CAGR of 15%. Tracey T. Travis, Executive Vice President and Chief needs, a willingness to try new beauty trends and Financial Officer, The Estée Lauder Companies products and the goal to treat existing skin With a constantly evolving definition of beauty and conditions. While recommendations from friends a sophisticated consumer with growing disposable and family and personal research are top sources of income, the Indian BPC market represents an BPC product discovery, influencers have emerged exciting opportunity for founders and creatives to as a go-to resource in recent years. Driven by a enter the market with a fresh take on what it means combination of complex lifestyle issues, acne, dark to be beautiful. circles, fine lines and wrinkles have emerged as the top beauty concerns for the Indian BPC customer with Gen Z leading the charge for affordable and 7 SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , ANALYSIS
2023 KEY FINDINGS Beauty and personal care (BPC) shoppers are driven by their Skincare & haircare are top used product categories followed functional needs, willingness to try the latest beauty trends by cosmetics; propensity to spend higher for cosmetics & & products and/or their need to treat existing skin concerns nutraceuticals. (acne, fine lines, dark circles, wrinkles). • Gen Z primarily face acne issues & prefer affordable Online distribution channels expected to grow at CAGR of & result-driven products; 40+ women facing wrinkles ~30%, fastest across all distribution channels, followed by are less experiential and looking for simpler products. health & beauty specialist & modern grocery retailer. • Ageless category segment is dominated by indifferent or brand conscious customers; offline platforms are BPC market in Tier 2+ cities expected to grow at a faster the preferred channel of purchase. rate of ~12%; Easier access to premium BPC brands on the back of omnichannel presence to drive segment growth. Multiple brands & products with low differentiation along with lack of proper guidance are some of the key pain points. Opportunity is for new entrants to carve out unique positioning and brand story. Social media influencers & ads are key sources of brand discovery for influenced & opportunist users while pragmatists primarily discover brands via friends / family. 8 SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , ANALYSIS
KEY FINDINGS
Beauty & Personal Care Market in India ~16.8B (FY22) 8% 6% 14% 12% 23% 21% PERSONAL BATH & SHOWER HAIRCARE SKIN CARE ORAL CARE COSMETICS HYGIENE Bar soap Conditioners & Facial Care Toothpastes Lip products Women’s Body powder treatments Body Care Toothbrushes Eye Makeup personal hygiene Liquid soap Shampoos Hand Care Mouthwash Facial Makeup Body wash Colourants Dental Floss Nail Products Hand Sanitizer Salon Hair Stylists 4% 4% 1% 6% MEN’S BABY & SUN CARE PERFUMES GROOMING CHILDCARE Deodarants Men’s Shaving Baby toiletries Sunscreen Fragrances Baby Skin Care Sun Spray Nappy Rash Treatments Baby Wipes 10 SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , ANALYSIS
India BPC market is expected to grow at a CAGR of ~11% during FY22-27; Cosmetics and fragrances to be one of the fastest growing sub-segments CATEGORY- WISE BPC MARKET IN INDIA US$ B, 2017- 27P COSMETICS : The dynamic presence of beauty influencers on social CAGR CAGR FY 17 FY 22 FY 27P BPC category media, the influx of cutting- edge new a ge cosmetic brands, and the FY17-22 FY22-27P increasing emphasis on organic products combine to create alluring market opportunities. 7% 7.4% Bath & shower 3.8 5.5 2.8 6% 9.6% Haircare 2.7 3.6 5.7 SKIN CARE: Skincare is fueled by increasing awareness and emphasis on general grooming along with accelerated demand for natural and Skincare 1.5 2.4 4.3 9.4% 12.1% organic skincare products amongst BPC shoppers. Oral care 1.5 1.9 3.4 5.3% 11.6% HAIR CARE: Factors such as rising awareness of hair health, usage shift towards natural products along with increasing concerns about Cosmetics 0.8 1.4 2.8 10.8% 15.3% pollution- induced hair damage contribute to the exponential growth of the industry. Perfumes 0.7 1 1.9 14% 7.4% PERFUMES: Expansion of e- commerce industry gives customers easy access to a variety of perfume brands which they can buy with their Others* 1.6 2.6 4.7 10.4% 12.6% growing disposable incomes. Focus on personal hygiene & grooming has further led to the surge in perfume demand. Market size (US$ B) 11.6 16.8 28.3 ~7.7% ~11% 11 NOTE ( S ) : * OTHERS INCLUDE PERSONAL HYGIENE, MEN ’ S GROOMING, BABY & CHILDCARE, AND SUN CARE SOURCE ( S ) : EUROMONITOR REPORT, INDUSTRY REPORTS, ANALYSIS
Key insights from BPC customers BPC shoppers are driven by their functional needs, willingness to try the latest beauty trends MOTIVATION & products or their need to treat existing skin concerns While recommendations from friends & family members and own internet research are top DISCOVERY sources of BPC product discovery for shoppers, influencers’ recommendations too have emerged as one of the prominent sources of awareness in the recent times KEY PURCHASE Quality and brand popularity continue to be the top KPCs for BPC shoppers in India; however, following them closely is use of organic and natural ingredients in products CRITERIA BPC shoppers now show higher acceptance towards online channels like Amazon, Nykaa, etc. CHANNEL OF driven on the back of higher discounts on online websites, convenience of ordering from PREFERENCE home, influx of D2C brands, etc. Consumers make conscious purchase choices w.r.t. to their needs after considering their PURCHASE purchase criterions 12 SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , CUSTOMER IDIS ( N = 20 ) , ANALYSIS
Indian BPC shoppers undergo a series of steps before making the final purchase decision • • • • FUNCTIONAL NEED KEY PURCHASE CRITERIA CONVENIENCE OF PURCHASE GOVERNED BY CUSTOMER (KPCS) SERVING THROUGH ONLINE / OFFLINE SATISFACTION FROM • WANT TO TRY NEW BEAUTY INDIVIDUAL PURPOSES LIKE CHANNELS PRODUCT USAGE TRENDS & PRODUCTS 1 3 5 7 BRAND QUALITY, • • AVAILABILITY OF PRODUCTS SUITABILITY OF PRODUCTS • REQUIREMENT TO TREAT POPULARITY, ETC. FOR CUSTOMER UNTIL ONE • CURRENT CONCERNS PRESENCE OF OFFERS AND GETS BETTER ALTERNATIVES DISCOUNTS INSPIRATION / CHANNEL OF RE-PURCHASE KPCS MOTIVATION PREFERENCE PRODUCT SEARCH & TRY OUT / FIRST BENCHMARKING BRAND DISCOVERY PURCHASE • • • SEARCH FOR SOLUTION OF COMPARING KEY CRITERIONS FIRST PURCHASE WHEN PROBLEMS LIKE PRICE, QUALITY, KEY CRITERIA ARE MET REVIEWS AMONGST • RECOMMENDATIONS FROM 2 4 6 SHORTLISTED BRANDS FRIENDS / FAMILY / HAVING SIMILAR PRODUCT BEAUTY ADVISORS / ASSORTMENT INFLUENCERS • USE OF BRAND IN PAST 13 SOURCE ( S ) : CUSTOMER IDIS ( N = 20 ) , ANALYSIS
Multiple brands & products with low differentiation along with lack of proper guidance are some of the key pain points CONSUMER PAIN POINTS EMERGING IMPLICATION • Multiple brands have similar brand positioning; Promoting similar products under different brand names; lack of LACK OF BRAND differentiation makes customers feel overwhelmed. DIFFERENTIATION • Similar brands & price points confuse customers about which brand is the best value for money. • D2C brands are channeling their presence on online platforms whereas offline stores strengthening their LOW presence offline AVAILABILITY • Low focus on multichannel brand presence (mix of online & offline) resulting in low touchpoints for customers looking for a holistic shopping experience. • Often, skin issues faced by Gen Z, millennials, Gen X & baby boomers go unmet due to the absence of effective products. UNMET • Expensive treatments & low efficacy of already existing products mixed with improper guidance leaves skin DEMANDS issues like acne, fine lines & dark circles untreated. • Fast paced innovation in the BPC industry leads to frequent changes in beauty trends, thereby making it difficult for customers to keep up with the same. DYNAMIC TRENDS • Due to changing trends, customers switch their current brand in haste without letting it show results. • Following lack of proper guidance, customers find it difficult to choose the right BPC products & skincare regime as per their skin type. LACK OF GUIDANCE • Often, experimenting with different BPC products, leads to skin irritation & allergic reactions as customers may not be aware of the active ingredients used in a particular product. • With influx of several BPC brands & products, proper guidance is necessary for customers. 14 SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , CONSUMER IDIS ( N = 20 ) , ANALYSIS
Gen Z primarily face acne issues & prefer affordable & result-driven products; 40+ women facing wrinkles are less experiential and look for simpler products GEN Z MILLENNIALS GEN X BABY BOOMERS ACNE / DARK FINE FINE LINES & WRINKLES BREAKOUTS EYE CIRCLES LINES • • • • MOST COMMON IN 18-24 MOST COMMON IN 25-38 MOST COMMON IN 39-53 MOST COMMON IN 54+ AGE AGE GROUP AGE GROUP AGE GROUP GROUP • • • • CURRENT TREATMENTS CURRENT TREATMENTS USES PRODUCTS WITH CURRENT TREATMENTS INCLUDE ACNE FOCUSED INCLUDE THE USE OF ANTI AGEING INCLUDE NUTRACEUTICALS PRODUCTS & PROCESSES UNDER EYE CREAMS & PROPERTIES / RETINOL ( WITH VITAMIN A) INTAKE & LIKE CHEMICAL PEELS OTHER ROUTINE FOLLOWING A SIMPLE • CURRENT TREATMENTS PRODUCTS STEPS SKIN REGIME INCLUDE OXY FACIAL, SKIN TIGHTENING & BOTOX • • • • LOOK FOR AFFORDABLE PREFER PRODUCTS WITH PREFER MORE ACCESSIBLE, PREFER LESS COMPLICATED SOLUTIONS AS DERMA LONG-TERM EFFICACY LONG-LASTING SOLUTIONS SKIN ROUTINES INVOLVING TREATMENTS ARE WHICH DO NOT INVOLVE A SIMPLER PRODUCTS OR • CURRENT SOLUTIONS OFFER EXPENSIVE CONTINUOUS ROUTINE MINIMAL PRODUCTS SHORT-SPAN SOLUTIONS TARGETING VARIOUS ISSUES AT ONCE 15 SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , CONSUMER IDIS ( N = 20 ) , ANALYSIS
Ageless category segment is dominated by indifferent or brand conscious customers; offline platforms are the preferred channel of purchase AGELESS CATEGORY SOURCE OF AWARENESS WOMEN OVER 40+ AGE BRACKET FORM THE AGELESS CATEGORY BEAUTY TRENDS RECOMMENDATIONS 42% FROM FRIENDS AND PURCHASE BEHAVIOUR FAMILY MORE FOCUS ON QUALITY OF PRODUCTS & CONVENIENCE OF USE LOOK FOR PRODUCTS WHICH SIMPLIFY SKIN ROUTINES & CATER TO MULTIPLE SKIN ISSUES SKIN TREATMENTS AT ONCE SKIN SPECIALISTS / 42% DERMATOLOGISTS PURCHASE DECISIONS DRIVEN BY BRAND REPUTATION, EXCLUSIVITY, ATTRACTIVE PACKAGING & CELEBRITY ENDORSEMENTS CHANNEL PREFERENCE BPC PRODUCTS OWN INTERNET 50% OFFLINE: 56% SEARCH FOR PROBLEM & SOLUTION ONLINE: 28% BOTH: 28% 16 SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , CUSTOMER IDIS ( N = 20 ) , ANALYSIS
Social media influencers & ads are key sources of brand discovery for influenced & opportunist users while pragmatists primarily discover brands via friends / family BRAND INFLUENCED INDIFFERENT PRAGMATIST CONSCIOUS OPPORTUNIST USER USER Consumer does not have Consumer has a bias Consumer uses specific Heavily influenced by Consumer is a ‘deal their own preference in BPC towards specific products driven by specific brands ; all seeker ’; check prices Persona products; they are easily brands (traditional or need rather than product purchases are made from across platforms to avail description influenced to buy what is new-age brands) experimentation specific / select few discounts trending brands Age group (in years) 16-30 25-45 16-30 16-30 35-60 Income range <15L >20L <10L >10L Across all income ranges (in INR) Instagram / Recommendation Instagram / Youtube Recommendation from Recommendations Youtube from friends / family doctor from friends/family Recommendation Recommendations E-commerce E-commerce Recommendations Key source of from doctor from social media from friends/family discovery of brands influencers Own Research Recommendation Recommendation from from social media social media influencers influencers Live commerce Low High ◔ ◕ ● ◑ 17 SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , CONSUMER IDIS ( N = 20 ) , ANALYSIS
Skincare & haircare are top used product categories followed by cosmetics; propensity to spend higher for cosmetics & nutraceuticals USAGE OF PRODUCT CATEGORIES KEY TRENDS (%, N=450) Serums & sunscreens are key emerging SKINCARE 90% products in this segment Informed & higher usage of haircare products HAIRCARE 87% post Covid Higher adoption of cosmetics due to social COSMETICS AND MAKE-UP 72% media influence Better inclination seen towards affordable FRAGRANCES 71% fragrance options Body moisturizers still dominate the body care BODY CARE 68% segment INTIMATE CARE 54% Prominently used by women NUTRACEUTICALS Commonly used by the 40+ age group 14% 18 SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , ANALYSIS
Online distribution channels expected to grow at CAGR of ~30%, fastest across all distribution channels, followed by health & beauty specialist & modern grocery retailer BPC MARKET IN INDIA (BY DISTRIBUTION CHANNEL) US$ B, FY22-27P CAGR FY22 FY27P • Online distribution channels are expected to escalate at a FY22-27P CAGR of ~30% E- commerce 1.3 30% 4.7 • The growth of online channels is attributed to the surge in digital adoption along with the convenience offered by the online channel Direct from website 0.9 29% 3.3 • Wider product assortment, enticing discounts, and customization are other factors leading to the growth of this distribution channel Chemists / 1.7 2% 1.8 pharmacies • Modern grocery retailers are expected to grow at a CAGR of ~15%. • Modern grocery retailers offer a one-stop shop option to Health & beauty 2.3 15% 4.9 customers while offering & a wide range of products from store & others* trusted brands. These stores are also located in convenient locations, making it easier for consumers to access them Traditional retailers 7.4 3% 8.6 • Distribution of BPC products through health & beauty specialists is expected to grow at a CAGR of ~15% • These specialists provide an immersive in-store experience Modern retailers** 3.2 14% 6.1 with product demonstrations, trials, and expert advice, creating a personalized experience Market size (US$ B) 16.8 28.3 19 NOTE ( S ) : * OTHERS INCLUDE NON- GROCERY MT ( MODERN TRADE ) CHANNELS; ** MODERN RETAILERS INCLUDE CONVENIENCE STORES, HYPERMARKETS, SUPERMARKETS, ETC. SOURCE ( S ) : EUROMONITOR, INDUSTRY REPORTS, ANALYSIS
BPC market in Tier 2+ cities expected to grow at a faster rate of ~12%; Easier access to premium BPC brands on the back of omnichannel presence to drive segment growth BPC MARKET IN INDIA (CITY TIER- WISE) • Urbanization is leading to the dynamic evolution of lifestyle & awareness and US$ B, FY22-27P accelerating the usage of BPC products with a CAGR of ~8% and ~12% CAGR FY27P respectively in Metro/Tier 1 and Tier 2+ cities. FY22 FY22-27P • With the growth of e-commerce & increase in retail chains, products have 20.4 TIER 2+ 12% 11.4 become more accessible to customers. • Social media ads and influencers are also creating an impact on customers in METRO + TIER 1 5.4 7.9 8% tier 2+ cities. MARKET SIZE (US$ B) 16.8 28.3 BPC MARKET IN INDIA (BY PRICING) US$ B, FY22-27P • Premium BPC brands are expanding their distribution channels in India at a CAGR of 16%, making their products more accessible to consumers through FY27P CAGR FY22 an omnichannel presence. FY22-27P MASS 10% 24.5 15 • E- commerce platforms & specialized retail stores in public places with a higher audience are making it easier for consumers to access premium BPC brands and products. PREMIUM 16% 1.8 3.8 • The disposable income of customers is also rising enabling them to buy premium products. MARKET SIZE (US$ B) 16.8 28.3 20 SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , ANALYSIS
METHODOLOGY 21
Quantitative and In-Depth Interviews QUANTITATIVE SURVEY WITH BPC IN-DEPTH INTERVIEWS: QUALITATIVE CUSTOMERS ACROSS VARIOUS IDIS WITH BPC CUSTOMERS ACROSS CITIES IN INDIA VARIOUS CITIES IN INDIA Cities covered (IDIs) Cities covered (Customer survey) Region City Achieved N City N Mumbai 42 Delhi NCR 3 Delhi NCR 42 Mumbai 2 Bengaluru 41 Metro & Metro & tier-1 Hyderabad Tier 1 29 Bengaluru 2 Chandigarh 34 Chandigarh 1 Kolkata 26 Jaipur 2 Jaipur 14 Ahmedabad 32 Tier 2 Indore 2 Tier 2 Lucknow 53 Vadodara 2 Indore 33 Siliguri 2 Kanpur 27 Vadodara 21 Tier 3 Surat 2 Tier-3 Udaipur 35 Dehradun 20 Kota 2 Others* 1 Total 20 Total 450 22 NOTE ( S ) : * OTHERS INCLUDE BAREILLY SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , ANALYSIS
Customer profile: Interviewed BPC customers (N=450) across demographic mix INCOME (INR L) PROFESSION AGE (YEARS) 18% 19% < 5 13 - 18 STUDENT / 35% HOUSEWIFE 18% 23% 19 - 24 5.1 - 10 32% SALARIED PROFESSIONALS* 24% 10.1 - 15 21% 25 - 30 19% SELF-EMPLOYED 21% 31 - 40 15.1 - 20 13% PROFESSIONALS** 8% 11% 41 - 50 20.1 - 30 18% OTHER 6% > 30 8% > 50 6% PROFESSIONALS GENDER CITY FEMALE 81% METRO & TIER 1 48% 29% TIER 2 MALE 19% TIER 3 22% 23 NOTE ( S ) : * SALARIED PROFESSIONALS INCLUDE PUBLIC AND PRIVATE EMPLOYEES, ** PROFESSIONALS INCLUDE CA, DOCTORS ETC. SOURCE ( S ) : BPC CUSTOMER SURVEY ( N = 450 ) , ANALYSIS
THANK YOU 24