stributor Luxasia said in a report. Luxury beauty makes up just 4 per cent of the US$21-billion beauty and personal care market, compared with 8 per cent to 24 per cent across top Southeast Asian countries and 25 per cent to 48 per cent in developed markets including China and the United States. That means there is plenty of room for growth. “India is the last bastion of growth for premium beauty,” said Sameer Jindal, MD for investment bank Houlihan Lokey’s corporate finance business in India. “The Indian consumer is willing to experiment and try out new things.” US beauty giant Estee Lauder, home to the brands Clinique and Mac, expects a strong runway for expansion and long-term growth in India, even as it grapples with soft sales in the Americas and Asia-Pacific. “India today, within the Estee Lauder network, is looked at as one of the priority emerging markets,” said country general manager Rohan Vaziralli, highlighting plans to initially target 60 million women in the nation of more than 1.4 billion. Homemaker R Priyanka, based in the southern city of Chennai, said she was thrilled to have better access to Estee Lauder’s Jo Malone London fragrance in India, as a benefit of the companies’ efforts. “It is easier than asking someone (abroad) to get it for you every time,” she added. While global beauty brands might have to modify some of their products for India, which bakes in sultry temperatures in summer and oppressive humidity at other times, they face little competition from homegrown brands. Kearney and Luxasia identified only Forest Essentials and Kama Ayurveda as their major rivals, underscoring how domestic brands make up less than a tenth of luxury beauty sales. In the more established markets of China, Japan and South Korea by comparison, domestic brands account for a 40 per cent share. “There is, of course, a premium perception gap between globally established brands and Indian brands,” said Devangshu Dutta, founder of retail consultancy Third Eyesight. Global beauty giants’ huge marketing budgets also give them an edge over domestic brands, other industry watchers said. Wooing Indian shoppers Estee Lauder is studying online sales patterns to identify the smaller cities to target, such as Siliguri in West Bengal state, partnering with designers such as Sabyasachi Mukherjee, and launching products such as kohl, an eyeliner Indians favour. It has also invested in Forest Essentials, a brand with herbal ingredients, and in a programme offering funding to domestic beauty start-ups. This year France’s L’Oreal said it was investing more in India and tapping into the “elevated beauty desires” of the nation’s young, digitally savvy, empowered women shoppers to drive growth. It declined further comment. South Korea’s Amorepacific, known for brands such as Innisfree and Etude, is trying to leverage the Korean beauty craze in India with products geared to the market. These include items for the popular “cleanser, serum, moisturiser and sunscreen” beauty regimen, the country head, Paul Lee, said. Japan’s Shiseido, with a history of more than 150 years, brought its Nars brand to Indian beauty retailer Nykaa’s website this year, and plans to step up growth of its brands in the subcontinent. Global brands are very excited about India, where consumers are splurging more to stay on top of trends such as “cherry makeup”, Nykaa co-founder Adwaita Nayar said, referring to a look featuring flushed cheeks, glossy lips, and soft pink eyes. Amazon, which has also been seeing a big boom in beauty demand in India, aims to identify emerging global trends and bring in more brands, said Siddharth Bhagat, director of beauty and fashion at the e-commerce company in India. Retailer Shoppers Stop, which also pioneers foreign labels, plans to open 15 to 20 beauty stores in each of the next three years to boost its revenue from the segment to a quarter from less than a fifth now, its beauty business CEO Biju Kassim said. Reporting by Praveen Paramasivam in Chennai; Editing by Dhanya Skariachan and Clarence Fernandez, of Reuters.