Published on February 22, 2016

The beauty and wellness industry in India is growing at a CAGR of 18.6 %. The sector is thriving on the increasing section of affluent and middle-class population that has started considering beauty and wellness as a necessity

Presently, in the wellness industry, products have had higher margins than services. Many wellness service players are diversifying into products in order to improve business margins.

Market players across the industry are struggling with issues such as rising input, distribution, rental and manpower costs. In order to mitigate margin risks, they are being more pre-emptive and responsive to market dynamics.

They are constantly in pursuit of new options in order to trim operating expenses. This in turn may call for companies to challenge existing practices and re-orient internal processes.

According to market predictors, cosmetic product players needs to invest in educating consumers about the benefits of specific beauty products and its ingredients in order to mould customer preference towards their products. As the customer will attract towards the product demand sentiments will improve and margins also will be positive.