Scope of advanced skincare clinics in South India: Expansion and marketing strategy for a new venture

Abstract

Indian cosmetic industry has been witnessing strong growth for the past few years andemerged as one of the industries with huge future growth potential. Due to changing lifestyleand spreading consumer awareness, people have become more beauty conscious. Skin Care isone of the most attractive segments of the Indian cosmetic market. Indian Skin Care industryis valued at around 180 million dollars. The segment has been registering impressive growthrate for the last couple of years. With the rising awareness about personal grooming, theskincare market is further expected to register strong CAGR of nearly 19% during 2010-2013.Increased awareness about the benefits of skin care products and the advancement in medicaltechnology with safe & effective procedures have made the skin care market grow at a fastrate. Moreover, changing climatic conditions has contributed for the high sales of skin careproducts in the country. With increased emphasis on beauty and looks in the contemporarysociety, the scope of skin care products or procedures is forever on the rise. Globalization hasaccelerated this change in behavior aided by increased exposure to western influence bymedia. Growing literacy rate is another factor thought to be significant in this mindsetchange.The situation being this, relevance of qualified skin care specialists or Dermatologists hassignificantly increased. This can be understood by the ever increasing number of ‘AdvancedSkin Care Clinics’ spread across the country. Although the market is not as mature as US orEurope, the increasing disposable income of Indian middle class has prompted the expansionof this particular market. Especially the markets like Bangalore, Mangalore, Mumbai etc arethought to be very advanced and ready to be tapped (or are already being tapped by numerousplayers of national or regional significance).Considering all this, it is clear that India is a potential mine field for Skin Care industryplayers. The growth of establishments such as Kaya Skin Clinic is an apt example signifyingthis. As part of this research, we’ll be looking at analyzing the scope of such establishmentsin South India, especially Kerala. Our study will revolve around a new venture based out ofKerala, with the aim being chalking out an expansion strategy for the venture and themarketing strategy for the same.