Bengaluru: Kaunis Marketing Services Pvt. Ltd aims to tap into the rapidly-growing Indian beauty and personal care market by bringing two more German brands from the Artdeco Group to India over the next six months.
It launched the first brand from Artdeco, a colour cosmetics line under the name BeYu, in March and is in the process of launching another from the same group—premium skincare brand Malu Wilz. The next ones on the anvil are premium colour cosmetics brand Makeup Factory and nail colour and nail art brand Anny.
“It is the right time now for the Indian market because the country is developing very fast. Lots of people are now in the middle class so they can afford to buy more luxurious products. That makes it very interesting for any brand to enter India now," said Claudia Steinberger, managing director of Malu Wilz.
TIW Private Equity-backed Kaunis, and its associated brands, are looking at segments that still have a huge potential. For instance, with Malu Wilz products, they aim to capture the mid-price segment in premium skincare.
While brands like Shiseido and Estee Lauder operate in the Rs4,000 and above price segment, those at the entry level, like L’Oreal and Body Shop, are in the Rs1,500 range, said Ajay Ghooli, Kaunis’ managing director. The Rs2,500 territory that lies in between does not have too many brands, and that’s what Kaunis and Malu Wilz are targeting. The average selling price for Malu Wilz is Rs2,500, while the entire range goes from Rs1,700 to Rs4,000.
The longer term goal is for Kaunis to bring in brands that operate across various categories, from cosmetics to perfumes.
“The entire skincare market is about Rs10,500 crore and growing at about 16.4% CAGR, based entirely on internal estimates. By 2025 it is almost going to double or triple according to industry sources," said Ajay Ghooli.
The Indian colour cosmetics market was worth Rs5,880 crore in 2016 while skin care was a Rs10,620 crore market, according to data from research firm Euromonitor International. They grew at a compounded annual growth rate (CAGR) of 21.3% and 14.7%, respectively, between 2011 and 2016 in terms of value. But those rates are expected to slow down drastically to CAGRs of 8.8% for colour cosmetics and 4.8% for skincare between 2016 and 2021.