Beauty and Personal Care in Hyderabad

January 2018

Hyderabad is the fifth most populous city in India with the majority of the population comprising Baby Boomers and Millennials. The growing disposable income in the city has caused consumers to increase their expenditure on beauty and personal care products, especially hair care products. In addition, the rising beauty concerns, especially among the working population, has increased the demand for beauty salon and spa services.

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Home-grown beauty retailers expanding their product lines

Home-made remedies for beauty care are still prevalent in the city. The majority ofthe Baby Boomer generation, especially homemakers, use natural and herbal ingredients for their beauty requirements. To tap into this potential, local companies have come out with beauty products with herbal and natural ingredients. Banjaras introduced a rose water and papaya water skin toner, skin care powder made from orange peel and face packs using mud and sandalwood.

Establishment of beauty parlours and spas around affluent areas

The concept of visiting beauty saloons and spas emerged with the increasing Millennials in the city. This group is more beauty conscious and prefers to be well groomed. Hence, beauty parlours are offering modern spa services and packages for waxing, threading, manicures, pedicures, facials and massages, which are mainly targeted at Millennials. The Baby Boomer generation has not adapted to this lifestyle and continues to address beauty needs at home.

High demand for haircare products

Hair care products have outperformed other categories in the city as Hyderabadis are conscious about their hair. Hair oil is highly demanded in the city by both men and women and is applied on a daily basis. The population has shown a higher preference towards herbal and ayurvedic hair care product. The older generation,especially those above 65 years, favour henna over hair dye.

Direct selling, bangle stores and department stores - major channels for beauty care products

The majority of hyderabadis purchase beauty and personal care products from local kirana (“mom and pop”) and bangle stores. People prefer to buy beauty products in small quantities, which is mainly available at these stores. Direct selling companies and department stores are favoured by the middle class and affluent population,due to the availability of diverse branded products.

Introduction
Hyderabad: overview
Consumer profile: modest, simplistic and price-conscious
A typical daily regime
Key findings
Consumers continue to prefer herbal alternatives
Regional companies expanding their beauty product offerings
Local salons stimulate demand for cosmetics
On-demand beauty services gaining popularity
Hair care products garner attention from all consumer groups
Increasing demand for men’s grooming products
Multichannel sales of beauty products
Bangle stores, the convenient channel for buying beauty products
Kathiawar Store Supplying Company Pvt Ltd
Banjara’s Herbal Products Pvt Ltd
Aswini Homeo & Ayurvedic Product Pvt Ltd
Key takeaways
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