An established Indian company saw its opportunity. It attacked at both ends of the market by launching a prestige brand at double its competitor's price and a lower range at half the price. The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers. But despite the high concentration of wealth in urban areas, the rural market,where three quarters of Indian live, is important. For example, the rural market for shampoo is three times the size of the urban.
Companies report that rural demand is rising fast.
There are huge opportunities for cosmetics companies. The low market penetration of many personal care products leaves room for growth. Current consumption of many products is well below that of more developed countries in Asia. Companies employ trained counsellors to grow sales of premium products and brands in the specialist channel. Counselling, they report, is crucial to overcoming women's lack of familiarity with, and fears about, personal care products such as home hair permanents and colour cosmetics.