October 28, 2025

Japanese luxury beauty brand Shiseido is stirring up the cosmetics scene by planning local manufacturing in India! This move could give them major advantages like lower taxes and quicker deliveries in the lightning-fast growing Indian beauty market. Sanjay Sharma, Shiseido’s India head, told ET, "Local manufacturing would get the company inherent advantages, including lower duties, in the rapidly expanding India market." Though the brand currently imports all its products, Shiseido is ready to take a step forward if the business grows big enough. India's luxury beauty market is set to explode from $800 million in 2023 to a whopping $4 billion by 2035, according to reports by Kearney and LuxAsia. And with China’s beauty buyers hitting pause due to economic troubles, India is catching global eyes! Sharma revealed, "As scale builds up, makers of luxury cosmetics are starting to make in India," hinting the trend is already on. Not alone on this exciting journey, stars like Selena Gomez’s Rare Beauty, Rihanna’s Fenty Beauty, and Priyanka Chopra’s Anomaly recently launched in India, creating a fresh buzz. Meanwhile, an insider from a Delhi cosmetics import company shared, "We have enquiries from two global celebrity-owned luxury beauty brands to find local partners to make in India," showing demand is hot for local production. Global leaders like Estée Lauder (owners of MAC and Clinique) and The Body Shop (through local partner Quest Retail) are also locking in Indian manufacturing partners. Estée Lauder’s CEO Stéphane de La Faverie spilled at a conference that the company has approved a “massive investment” to feed India’s rising beauty appetite. He added, “In India, one of the winning strategies has been the deployment of small sizes. The ability to bring luxury products at a mass affordable price points, is going to be critical for us to win in the market.” An American cosmetics firm also shared, “We have started making two lip colour lines and foundation in India, and we sold during Diwali at prices 25% lower than our imported lines.” On the home front, Shiseido’s French brand Nars Cosmetics recently teamed with Reliance Retail and Nykaa online platforms and opened its second store. Luxury beauty products in India are pricey, with haircare over $15, skincare over $20, and fragrances above $40 per pack, turning these into status symbols. Quest Retail’s head Shriti Malhotra said, "We have introduced India-specific ranges that are produced locally, under The Body Shop and Avon labels." This strategy is smart given current import duties on cosmetics add up to around 48%. Shiseido runs 11 manufacturing plants worldwide, including in Japan, China, Taiwan, and the US — now India might just join this elite club! The cosmetics battlefield is shifting, and India’s luxury beauty market is gearing up for a dazzling rise. Will your favorite luxury brands be made in India soon? Watch this space!

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Tags: Shiseido, Luxury beauty, India manufacturing, Estee lauder, Cosmetics market, Local production,