H&M enters beauty segment in India, takes on Nykaa, Tira
What's the story
Swedish fast-fashion giant H&M has made its entry into India's booming beauty market. The move comes nearly a decade after the company's first foray into the country with clothing and home products. The expansion puts H&M in direct competition with established players such as Hindustan Unilever's Lakme, L'Oreal, Reliance's Tira, and Nykaa, among others.
Brand expansion
H&M to launch private-label beauty range
H&M is popular among Gen Z and millennial shoppers for its affordable, trend-driven fashion. The company plans to leverage this brand equity by launching a private-label beauty range that complements its existing fashion offerings. Cathrine Wigzell, Global General Manager at H&M Beauty, said the brand's strong presence in the fashion industry will help them enter the beauty market successfully.
Sales strategy
Targeting India's mass-affluent segment
H&M will sell its beauty products exclusively through its fashion stores and online platform. The company is targeting India's mass-affluent segment with makeup products priced under ₹799 and perfumes starting at ₹1,299. This demographic is a major contributor to India's beauty and personal care (BPC) market, which is expected to reach $34 billion by 2028.
Market competition
Local manufacturing for faster go-to-market
H&M's pricing strategy will put it in direct competition with makeup brands like Lakme and L'Oreal, as well as private-label offerings from omni-channel platforms such as Nykaa and Tira. Despite being a new entrant in the beauty market, H&M has ensured that a significant portion of its launch portfolio, including makeup, perfumes, and beauty tools, are locally manufactured.