The Indian beauty and personal care (BPC) market has seen remarkable growth over the years, driven by a combination of increasing consumer spending, a burgeoning middle class, and greater urbanisation. As per sources, this market was estimated to be $ 26 billion in 2023 and is expected to reach $35 billion by 2028, growing at a CAGR of 6 percent.
With both domestic and international players eyeing this market’s share, it is considered one of the highly competitive markets. For majority of the aspirational consumers, however, affordability is the key factor that is affecting preferences across the board.
One key player in this segment is MARS Cosmetics– which started as an online direct-to-consumer (D2C) brand in 2016. Besides targeting price-constrained customers, the brand ensures good quality products by outsourcing its products to third-party manufacturers across India and importing from China, Taiwan, and Germany.
With more than 1,000 SKUs, the company made Rs 200 crore in revenue in FY24 and is expecting to close FY25 with Rs 400 crore, shares Anmol Sahai Mathur, CMO at MARS Cosmetics.
The Delhi-based brand competes with the likes of New York-based Maybelline, Hindustan Unilever-owned Lakme and D2C major Mamaearth.
Edited excerpts:
Take us through the journey of MARS Cosmetics.
When MARS Cosmetics launched in 2016, we identified a significant opportunity to disrupt the Indian cosmetic market by addressing a critical gap: the need for an affordable and accessible makeup brand created for the diverse expectations of Indian consumers. While the Indian beauty market is highly competitive, major players have traditionally focused on catering to global beauty standards. This has often resulted in products that do not fully align with the varied skin tones, skin types, and ethnic characteristics of Indian customers. We wanted to fill this void by creating a brand that Indian consumers could rely on for quality products specifically designed to meet their unique needs.
Compared to the competition, the brand today distinguishes itself with quality, innovation, and affordability
How does the brand intend to grow this year and what remain the key growth enablers?
This fiscal year, we’re aiming for a 60 percent increase in revenue compared to last year and should be closing the fiscal at around Rs 400 crore. We have strategically introduced a new product category, ‘Nails,’ to diversify the portfolio and cater to evolving consumer preferences. Additionally, we have fortified existing categories by expanding and refining assortment to better meet the needs and expectations of the customers.
So, by implying innovative product launches, expanding distribution channels, and optimising marketing strategies, we are poised to achieve significant revenue growth while position ourselves as a key player in the competitive beauty industry.
To drive growth, the company is also focusing on expanding geographical presence and market penetration. Simultaneously, enhancing the digital footprint by optimising e-commerce capabilities, improving website functionality, and using digital marketing channels to reach a wider audience effectively.
How have you increased the advertising spends for this year?
This fiscal, we have increased advertising expenditure by 20-30 percent compared to last year. By investing more in advertising, we aim to reach new audiences and reinforce the brand’s visibility in competitive markets. Embracing digital transformation is another key driver- this includes ramping up investments in social media campaigns, expanding influencer partnerships, and strategically deploying digital advertising to effectively connect with the target demographic online.
Read more: Modenik Lifestyle ups ad spends by 25 percent; to double revenue growth in three years
How vital is the role of influencers in your marketing strategy?
Influencers play a pivotal role in MARS Cosmetics’ overarching marketing strategy, leveraging their ability to authentically connect with audiences and build trust. Over the past years, their role has evolved significantly as influencers have become even more influential in shaping consumer preferences. Unlike traditional advertising, where messages are often perceived as promotional, influencers offer a personal touch by sharing genuine experiences and recommendations. This authenticity resonates deeply with their followers, making influencer endorsements highly impactful in driving brand awareness and engagement.
Moreover, influencers have not only endorsed the products but have also played a crucial role in educating consumers about the brand values, unique product offerings, and how the cosmetics cater specifically to diverse Indian skin tones and preferences.
In 2024, we increased the spending on influencer partnerships by 25 percent compared to the previous year. Last year, the focus was on laying a strong foundation in influencer marketing by building relationships with key influencers. This year, the company has expanded its budget to encompass a broader spectrum of influencers, ranging from micro-influencers to macro-influencers.
By investing more in influencer partnerships, we aim to enhance the authenticity of the brand messaging and deepen connections with consumers, thereby reinforcing credibility and expanding the reach. Moving forward, we will continue to optimise the influencer marketing strategy, adapting to evolving trends and consumer behaviors.
What is the company’s long-term growth plan?
Our long-term goals centre around expanding the market presence and solidifying the position as a leader in the cosmetics industry. The primary objective is to capture a larger share of the market, particularly by strengthening the footprint in tier-two and tier-three cities across India. Central to this goal is the commitment to delivering ‘Makeup for Everyone,’ ensuring the products cater to diverse consumer preferences and beauty needs.
By March 2025, we aim to establish over 40 exclusive brand outlets, enhancing accessibility and brand visibility in key markets. In addition to expanding the retail footprint, we are leveraging quick-commerce solutions and optimising e-commerce strategies to reach a broader audience and facilitate convenient purchasing options.