On the back of growing disposable incomes and a developing consumer appetite for luxury goods, Kaushik says the company wants to take growth to the next level. In an exclusive interview to TOI, he said that the task is to make L’Oreal India a 1-billion-euro business in the next 3-4 years – a target that would require the company to grow at double the pace of growth of the Indian beauty market. “We estimate that the India beauty market should grow 9-10% CAGR. The intent is to grow at double this pace,” said Kaushik, who returned to India as MD following his assignments abroad, in January.
“Almost 25% of the contribution to the growth of L’Oreal comes from emerging markets. India, which leads this pie, is the harbinger of keeping the L’Oreal flag flying high in the emerging markets world,” he added.
In the three decades since L’Oreal set foot in the country, much has changed in the beauty and personal care market. Segments like hair colour have become bigger categories, with hair constituting almost 46% of the total weight of the $10-billion pure play beauty market. The constituents of this 46%, however, have changed over the years – with hair care now at about 20%, hair oil at 16% and hair colour at 10%. Skin, at 30%, continues to remain relevant and big, while hygiene is at 7% and fragrance at 2%. What has expanded significantly is makeup, which forms close to 15% of the market.