Strengths, Weaknesses, Opportunities, and Threats Examination of Lakmé
The Indian beauty and personal care market is on a rapid growth trajectory, projected to reach approximately $20 billion by 2025, expanding at a Compound Annual Growth Rate (CAGR) of around 10%. This presents a significant opportunity for companies like Lakme, a well-established name in the industry.
Lakme, with its rich heritage dating back to 1952, co-founded by JRD Tata's company, Tata Oil Mills, can leverage this growth by expanding its presence in both urban and rural markets. By introducing innovative products that cater to diverse consumer needs, Lakme can capture a larger share of this expanding market.
One area of focus should be the growing trend of preferring natural and organic products. Lakme can tap into this trend by investing in research and development to create eco-friendly product lines. With 65% of Indian consumers preferring cosmetic brands that offer natural and organic products, this could be a game-changer for Lakme.
However, the grooming industry is not without its challenges. Fake products are affecting the brand image of companies, particularly in rural markets and small towns. Intensive competition from local, national, and international players is another major threat. Due to changes in lifestyle, skin is becoming more sensitive, posing a risk of losing sales on allergic grounds for companies in the personal care industry.
To combat these challenges, Lakme can extend its presence in the growing premium segment of the grooming industry. This move could help it become a leader in the industry and differentiate itself from competitors. Additionally, creating collaborative and participative community-focused activities can help Lakme build its brand image and co-create growth opportunities.
Moreover, the entry of international brands into the Indian market can also affect Lakme's business or limit its growth rate. It is crucial for Lakme to stay vigilant and adapt to the changing market dynamics to maintain its competitive edge.
In conclusion, the Indian beauty and personal care market offers significant opportunities for growth, and Lakme, with its rich heritage and innovative approach, is well-positioned to capitalise on this growth. By focusing on natural and organic products, expanding into the premium segment, and building a strong brand image through community engagement, Lakme can secure its position as a leader in the industry.
