Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

I have 18 years of experience in the personal and home care industries. I hold a Bachelor’s, Master’s, and PhD in cosmetics and a diploma in skin nutrition. Additionally, I have an MBA in HR and Marketing and am a certified counsellor specializing in industrial counselling.

Q2. How is the cosmetics market currently segmented between premium and mass-market products?

It is based on consumer preferences. Generally, basic hygiene products such as soap, shampoo, conditioners, etc., are considered mass-market products, whereas efficacy-based products are considered premium products. 

Q3. What strategies are mass-market brands using to move upmarket?

It is generally based on a value-for-money strategy; hence, price discounts, more quantity given as free, etc, are used for marketing. 

Q4. Are there emerging direct-to-consumer models disrupting traditional distribution?

Yes. There is tremendous growth in the D2C segment, especially after COVID-19. With the help of digitalisation, D2C companies are disrupting conventional supply chain models. It is also observed that D2C companies focus on premium products, whereas in conventional supply chains, they are only available at high-end retail stores. 

Q5. Are there emerging markets showing rapid growth in premium cosmetics adoption?

Asia, Africa, the Middle East, and LATAM are growth engines for premium segments. Within Asia, India is one of the biggest opportunities, being a populist country in the world and having a rising disposable income. 

Q6. Which cosmetic categories show the strongest premiumization trends?

Premiumization mostly focuses on efficacy-based products, e.g., Vit A serums, Vitamin C serums, anti-hair fall products, etc. 

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

I would ask the following questions: 

• How do you prove the efficacy of your premium cosmetics?
• How would you quickly adapt to new trends before they vanish in the consumer space?