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Why India Is a Key Emerging Market for the Estée Lauder Cos.

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Why India Is a Key Emerging Market for the Estée Lauder Cos.

The company entered the country more than 20 years ago with an affiliate. First MAC Cosmetics was launched, followed by Estée Lauder and Clinique. Today, the group has 14 brands in India and ranks first in prestige skin care and prestige makeup. The fragrance business is on the rise.

“The Estée Lauder Companies has been an early mover and a builder of prestige beauty in the Indian market,” said Nadine Graf, president, Europe, Middle East and Africa; U.K. and Ireland, and emerging markets, highlighting the group’s partnerships with retailers such as Nykaa. “Online has been a game changer and continues to be a big, big growth-driver.”

In addition to marketing its own brands in India, the company is investing in the market as well. In 2008, Lauder made a minority investment in the Ayurvedic beauty brand Forest Essentials, then increased its ownership stake in 2020. Earlier this year, it acquired the remaining shares to take full ownership.

“We see a tremendous potential of acceleration in India,” said Estée Lauder Cos. chief executive officer Stéphane de La Faverie. “I believe after K-beauty Indian beauty is the next wave, and Forest Essentials has a massive role to play in accelerating this next wave.”

As with other emerging markets, a key opportunity for Lauder is to tap into the growing middle class as they trade up in their purchasing habits. Whereas 90 percent of beauty sales come from the mass market, just 10 percent are generated by prestige products. “So imagine the opportunity with regards to sourcing and recruiting from mass,” Graf said.


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