India is considered as one of the fastest growing beauty markets in the world, growing at 16 per cent annually. Keeping this in mind, German colour-cosmetic company BeYu, of the ARTDECO group, re-entered the Indian market earlier this year in partnership with Kaunis Marketing Services Pvt Ltd this time. Before this, BeYu had come to in India in 2009, with Elder Health Care but exited in 2012. This time BeYu is bullish about the Indian market as the disposable income of the growing middle class has increased since the last time they were here.
Talking to IMAGES Retail, Ajay Ghooli, MD, Kaunis Marketing reveals the brand’s current market positioning and how his company sees the market for cosmetic retailing growing in future, which will provide immense opportunities for the brand to realise its optimum growth.
In 1999, visionary and cosmetics expert Helmut Baurecht introduced the brand BeYu to fulfill the wishes and expectations of trend-oriented, confident young women. They were cosmetics with a promise of high quality and exceptional price-performance ratio. BeYu has been a success for more than 15 years and one of the main reasons for it is that the brand recognizes international trend themes and implements them and adapts constantly to changing customer needs. Over 500 items, around 120 new releases per year and a global presence in over 40 countries speaks for itself. BeYu cosmetics belong to the ARTDECO cosmetic group which was founded in 1985. With more than 500 employees it is one of the most successful producers of cosmetics products in Europe. The products are dermatologically tested and are paraben and fragrance free as well as not tested on animals.
Presently BeYu has close to 12 company owned kiosks and 225 shop-in-shop/ franchise stores. BeYu’s current presence is in close to 15 cities in North India, 7 cities in East India, 10 cities in the West and 6 cities in the South.
Beauty Products Market in India:
The beauty market in India is pegged at Rs 45,000 crore, out of which color cosmetic is around 10 percent. India is considered as one of the fastest growing beauty markets. The market is growing at 16 percent annually. The demand for premium beauty products has increased in the country which has resulted in international beauty brands entering into the Indian market. In addition to this, factors such as increase in disposable income among individuals has raised the standard of living, due to which people aspire to own the best of the products and services.
Consumers have evolved with an increase in buying power. There has been a growing demand for new products and new brands. With the entry of newer brands in Indian market consumers get an improved product mix with better infrastructure.
Market Positioning and Customer Profile:
BeYu products are mass premium. Our target audience is Sec A and B+.
BeYu wanted to be different from the clutter of brands that already exist in the market.
Currently, the cosmetic market is undergoing a dynamic change. New players are venturing into the Indian market and therefore it is important to be different. It is important for our brand to offer what is required. We offer good quality products that are made in Germany.
Another interesting fact is that the products and colors are made keeping in mind the different skin types. Catering to the various skin type is quite challenging. By spring next year at least one fourth to one third of the whole collection will be brought new to the market to match the Indian color needs. We would want it to call the India collection.
BeYu’s price-points starts from price of Rs 400 with an average selling price of Rs 975.
The brand, along with Kaunis, has implemented strategic plans that cover all spheres of business from distribution, sales, marketing, pricing to logistics, manpower, operations and imports.
It also offers complete make up solutions for the face, eyes, nails and lips bringing the trends and colors of the world to the consumer. As a cosmetic brand, it listens to the pulse of the world and its innovative cosmetic products often reflect the special moods, impulses and trends across the globe. That’s why BeYu’s colour palette is as varied as the worldwide influences that define it.
BeYu prefers shop-in-shop in general trade and modern trade and in high foot fall malls they prefer vantage locations preferably on the ground floor.
The average size of BeYu kiosk is 150-250 sq.ft. The brand is still in the launch phase, but by the end of this year it plans to make its presence felt with 300+ plus stores across major cities. The goal is to have 500 plus stores and this they plan to achieve by early next year. The brand presently has close to 12 company owned kiosks. BeYu products are also available at Lifestyle, Health & Glow, Central, New U and top beauty stores.
The primary focus while designing fixtures is on translating the brand identity into consumer experience. The horizonal white strip running on two sides of ‘Made In Germany’ has worked as an inspiration for the management to drive this translation. Enough spaces are given to place large sized environmental graphics so that the brand communication, ‘#beyourself’ gets due prominence. The products are placed on black surfaces to affect the right amount of contrast and throw of colours, with white outlines as juxtaposition of the brand identity.