Hindustan Unilever Limited (HUL) is planning on making a bold entry into India’s premium beauty segment with the launch of Hourglass, a high-end luxury beauty brand. This move comes as part of HUL’s broader strategy to capitalise on India’s growing appetite for premiumisation, a trend that has reshaped consumer habits and led to an increase in demand for high-end products across sectors, particularly in beauty and personal care.
Tapping into India’s Premium Beauty Boom
India’s beauty market is on an impressive growth trajectory, expected to leap from $17 billion in 2021 to $30 billion by 2027. This shift is being driven by rising disposable incomes and evolving consumer preferences, particularly among affluent urban consumers seeking high-quality, innovative beauty products. As premium beauty brands gain more traction, HUL’s strategic launch of Hourglass positions it well to capture a growing share of this lucrative market.
Hourglass: A Game-Changer for HUL
Hourglass, renowned globally for its commitment to luxury and cruelty-free beauty, is part of HUL’s Prestige division, which has seen rapid growth since its inception. Since being acquired by Unilever in 2017, Hourglass has tripled its turnover, a testament to its popularity in the global market. The brand’s star product, Red 0, is the world’s first fully vegan red lipstick, setting a new standard in luxury beauty by eliminating carmine, a pigment traditionally sourced from beetles.
Competing with Global Giants
By introducing Hourglass to India, HUL is directly challenging international players like Estée Lauder and L’Oréal, which dominate the luxury beauty space. HUL’s advantage lies in its deep understanding of local markets and its strong distribution network, allowing it to deliver premium products to a broad consumer base. The brand also plans to leverage digital channels, aligning with current trends where 55% of Prestige sales come through e-commerce.
The Premiumisation Strategy
This launch is part of HUL’s broader shift towards premiumisation. The company has been focusing on expanding its premium beauty offerings, including brands like Lakme, Tresemme, and Simple, which are part of its Beauty & Wellbeing division. HUL’s premium beauty unit achieved an annual recurring revenue of ₹100 crore in a record time, reflecting the growing demand for high-end beauty products.
India’s affluent consumer base is not just growing in numbers but also sophistication. As consumers become more discerning, they are increasingly willing to invest in products that offer superior quality and innovative benefits. HUL is betting on this shift, focusing on high-growth demand spaces like skin care, anti-aging, and cruelty-free cosmetics. With the premium segment growing faster than the mass market, HUL’s premiumisation drive, bolstered by Hourglass, promises to be a game-changer.
Luxury Goes Local
HUL’s introduction of Hourglass in India is a well-calculated move to harness the growing premiumization trend. As consumers continue to shift towards high-end, ethically-produced products, Hourglass stands out as a brand that not only delivers luxury but also aligns with modern values like sustainability and cruelty-free beauty.
