British beauty brands set to glam up Indian market as Nykaa, Tira prep for the glow

India's Rs. 1,71,860 crore (US$ 20 billion) cosmetics and beauty market are poised to benefit from the India-UK free trade agreement (FTA), which will reduce duties on cosmetics and other products. This move is expected to make beauty product imports from the UK more affordable. India imported Rs. 296 crore (US$ 34.4 million) worth of cosmetics, perfumes, essential oils, and toiletries from the UK in 2024. Large UK-based companies like The Body Shop plan to increase imports into India. Other companies, such as Clinique and MAC Cosmetics (owned by Estée Lauder Companies) and French luxury group LVMH (which owns Dior and Tiffany & Co), will likely bring more global brands to India through their British subsidiaries. Executive Chairperson of Quest Retail, Ms. Shriti Malhotra, who has sales, distribution, and marketing rights for multiple global beauty brands in India, including The Body Shop, Kiehl's, Avon, and Anastasia Beverly Hills, said the FTA will broaden their portfolio and lower import duties, benefiting customers directly. She also highlighted that the new tariffs benefit "Made in India" beauty products.
The FTA will directly benefit retailers like Nykaa, Reliance Tira, and Shoppers Stop, as well as e-commerce platforms like Amazon and Myntra, which sell premium beauty products. The founder and CEO of the online marketplace Kindlife, Ms. Radhika Ghai, said the policy will help meet the growing demand for India's 700 million young consumers. The FTA is expected to usher in a new era of global collaboration and fuel growth. The agreement is also anticipated to trigger heightened competition for premium beauty players that manufacture and sell in India, such as HUL, L'Oreal, and P&G. Last week, Myntra announced it would start selling global beauty brands like YSL, Laura Mercier, and TirTir in India. Reliance Retail-owned Tira extended its e-commerce platform to a service called Concierge last month, which will include advisors, recommendations, and pre-orders.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.