Amazon India May Launch In-House Beauty Products

Amazon India has increased focus on the high margin cosmetics category and might be in talks with local manufacturers to launch Amazon branded personal care products in India, according to a report in the Economic Times, which has been widely re-circulated by others.

Amazon LogoIndia’s online beauty and personal care market is expected to cross $3.5 billion by 2022 from about $300 million now. Sales of both international and Indian beauty brands are increasing. Ananth Narayanan, chief executive of Myntra and Jabong, both fashion and lifestyle e-commerce portals owned by Amazon’s competitor Flipkart said, “We are looking at a contribution of about 8% [from the beauty segment] to our overall revenue by 2020, from the current 1%.”  Shalini Raghavan, chief marketing officer, consumer products division, at L’Oreal India said, “We have definitely added consumers (from tier 2 and 3 towns) through our online presence. With our retail footprint alone, [we] would not have had the same access earlier.”

Amazon India is reportedly talking to contract manufacturers in a few categories within skincare and makeup. The company’s recent partnership with the Shoppers Stop chain of stores will build a steady distribution channel for its beauty products.
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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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