Beauty's Next Big Global Business Opportunity Is in India

This month, graduating students from the Fashion Institute of Technology (FIT) School of Graduate Studies' Cosmetics and Fragrance Marketing and Management program presented their capstone research projects assessing the current and future state of the beauty industry. Among the areas of opportunity they identified, stand-outs include the Indian market and the "silver spender" (or the aging beauty consumer).

Focusing on the theme, "Beauty in a Shifting Global Landscape," students investigated the future of the global consumer and of global talent. The cohort spent six months gathering data, interviewing industry leaders and conducting field studies on a global scale.

"This year's theme was inspired by the uncertainty of the global economy; the prospect for slower or stagnant macroeconomic growth over the next decade; the changing landscape of industry regulation; the complete transformation in the consumer experience, led by technology; the rise of youth culture, especially in the Middle East, coupled with the aging population of developed countries; and the shifting balance of power of key global consumer markets, such as India," said Stephan Kanlian, a professor and the associate chair of the program.

The most notable findings came from the group that explored the future of consumers. Read on for more.

Beauty's Potential in India

India has overtaken China as the most populated nation, and students asserted that the nation posts a major opportunity for the beauty industry. The team's analysis of India covered the strength of its economy, the size of its population, the rise of its physical and digital infrastructure and the fact that its culture has deeply rooted beauty practices.

India has a young population, too, with 65% falling under the age of 35. As these generations enter the workforce, they also have increased disposable income, which presents an opportunity for beauty companies to tap into that purchasing power. The Indian beauty market is currently valued at $14 billion and expected to grow 8% over the next four years, note the students.

According to the presentation, to successfully launch a beauty brand in India, companies must listen to consumers, adapt their offerings and broaden their ideas.

Indian beauty companies are poised for expansion, too. Alyssa Lopez, senior manager of global marketing at Kiehl's and L'Oréal, pointed to Forest Essentials as an example of the future. The New Delhi-based brand focuses on ayurvedic ingredients and slow beauty messaging. With investment from the Estée Lauder companies, Forest Essentials recently expanded to the UK and Middle East.

A Gold Rush Opportunity for the 'Silver Spender'

The graduating class also turned attention to the "silver spender," or the beauty consumer who is over 60 years old. Rather than focusing heavily on Gen-Z, beauty companies should not neglect the opportunity to cater to the aging populations in developed countries, argue the FIT students.

Not only is this segment — 14 % of the global population — growing faster than other groups, but the demographic also holds a whopping 50% of the world's net worth, according to the FIT presentation.

Yet the so-called "silver spender" is portrayed (as much as 70% of the time) as being either isolated or accompanied by a caretaker, the students found. This outdated vision of the aging consumer perpetuates "the notion that life begins to end at 60" and causes feelings of underrepresentation, Chahat Chadha, data strategy and activation manager at L'Oréal, said.

To reach the over-60 customer, students suggest that companies segment their approach using a "life stage spectrum" to properly target interests.

"For example, one consumer could be happily married for 50 years while the other may be reentering the dating scene, navigating dating apps and texting for the very first time," Kathleen Subijano, assistant manager of product development at Keys Soulcare and E.l.f beauty said. "The life stage spectrum helps brands to identify the particular needs and desires of the silver spender based on their unique life experiences and values."

Watch the full event below or read further on other opportunities for the industry.

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