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Analysis of the cosmetology market in India

Release date 12.02.2021

Number of pages 57

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The relevance of research

To provide cosmetology services, a license is required, a medical professional (a specialist who provides these services must be a certified medical professional) must have a certificate and training in this field of medicine.

Cosmetology services are a special type of medical services aimed at improving a person’s appearance, treating or masking cosmetic defects caused by diseases, congenital or age-related changes in the body, and provided in order to change a person’s psychophysical state and satisfy his aesthetic needs.

Purpose of the study

Analysis of the state of the cosmetology market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the cosmetology market

Content

Part 1. Overview of the Indian market of cosmetology

1.1. Definition and characteristics of Indian cosmetology market
1.2. Dynamics of the volume of the Indian market of cosmetology, 2015-2019
1.3. Market structure by type of service provided in India
1.4. Structure of the cosmetology market by Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity

Part 2. Competitive Analysis in the Indian Cosmetology Market

2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players

Part 3. Analysis of the consumption of cosmetology

3.1. Estimation of the volume of consumption of cosmetology per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis

Part 4. Assessment of factors of investment attractiveness of the market

Part 5. Forecast for the development of the cosmetology market until 2024

Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators

Research excerpt

Part 1. Overview of the Indian market of cosmetology

1.1. Definition and characteristics of Indian cosmetology market

Cosmetology is a field of medicine that studies the problems of the human body, their etiology, manifestation and method of correction, as well as a set of techniques aimed at correcting the aesthetic problems of a person's appearance.
To provide cosmetology services, a license is required, a medical professional (a specialist who provides these services must be a certified medical professional) must have a certificate and training in this field of medicine.

According to p.p. 2,3 of the Procedure for the provision of medical care to the population in the profile ""cosmetology"", approved by order of the Ministry of Health and Social Development of India dated April 18.04.2012, 381 N n, medical care in the profile ""cosmetology"" includes a set of medical diagnostic and rehabilitation measures aimed at preserving or restoring structural integrity and functional activity of the integumentary tissues of the human body (skin and its appendages, subcutaneous adipose tissue and superficial muscles).

The provision of medical care in the field of ""cosmetology"" includes: diagnosis and correction of congenital and acquired morphological and functional disorders of the integumentary tissues of the human body, including those arising from injuries and surgical interventions, chemotherapy, radiation and drug exposure and previous diseases; informing the population about hygienic recommendations for the prevention of diseases, prevention of premature aging and involutional degradation of the skin and its appendages, subcutaneous adipose tissue and muscle apparatus.

The provision of cosmetology services is regulated by Federal Law No. 323-FZ “On the Fundamentals of Protecting the Health of Citizens in India”, as well as the Rules for the Provision of Paid Medical Services (approved by Government Decree No. 04.10.2012 of 1006).
As a set of techniques, cosmetology is divided into therapeutic and surgical.
...

1.2. Dynamics of the volume of the Indian market of cosmetology, 2015-2019

Consider the dynamics of changes in the volume of the cosmetology market in India for the period 2015 - 2019.

During 2015-2019 The volume of the market in monetary terms has steadily increased. However, in 2017-2019 market growth slowed down. According to the results of 2019, the volume of the cosmetology services market in India amounted to … billion Rs., which is …% more than a year earlier and by …% than in 2015. The average annual growth rate of the market volume for the analyzed period was …%.
...

Diagram 2. Dynamics of the volume of the market of cosmetology services in physical terms in India, 2015-2019, million services

Thus, the growth of the market for cosmetology services occurs mainly due to an increase in prices for services, rather than due to an increase in the volume of services.
...

1.3. Market structure by type of service provided in India

The services of specialists of a similar orientation are used not only by women, but also by men. They also subject their bodies to beauty injections and correct imperfections in appearance. However, the vast majority (…%) of patients are women. At the same time, the proportion of male patients is increasing every year.
...

Table 1. Classification of drugs for injection cosmetology

Among non-injection procedures, …% are hair removal. Non-surgical figure correction takes …%, photorejuvenation …%, and chemical peeling – …%.
...

1.4. Structure of the cosmetology market by Union Territories

To determine the structure of the cosmetology market by union territories, statistics on the number of cosmetologists was used. Thus, about a third (…%) of the market falls on the… Union Territories. The second place is occupied by … the Union Territories (…%), the third place in terms of the volume of these services is occupied by … the Union Territories (…%). This is followed by … Union Territories with a share of …%. The … Union Territories account for …% of the market. The North Caucasian Union Territories occupies …% of the market. The smallest volume of these services is accounted for by … Union Territories and … Union Territories – by …% each.

Diagram 7. Structure of the provision of services in the field of cosmetology in India by Union Territories, %

1.5. Assessment of current trends and development prospects of the studied market

People today have a great need to look good, beautiful, young: appearance largely determines the success of a person. Despite the crises, falling incomes, the demand for cosmetology services continues to grow. People who have taken care of themselves continue to do so. Plus, a new layer of customers is emerging - Generation Y. They just reach the age of 25, actively begin to look at how to be healthy, beautiful - and join the ranks of cosmetologists patients.

Specialists in the aesthetic medicine industry note the trend towards non-surgical intervention and an increase in demand for non-surgical procedures - it is cheaper and adapts to new fashion trends. The market is slowly redistributing the market from injection cosmetology and plastic surgery towards hardware cosmetology. Injection cosmetology and plastic surgery are still in demand, but thanks primarily to equipment manufacturers, hardware cosmetology is gradually crowding out their positions.

There is a tendency to use anti-aging care, soft methods of exposure. Minimally invasive services that do not cause pain and do not require major surgical interventions are gaining popularity.
There is an expansion of the segment of preventive procedures, the audience of which is mainly young women (“rejuvenation” of the target audience of the market by promoting the importance of prevention).
...

1.6. Assessment of factors affecting the market

Let's consider the main factors influencing the market and, accordingly, demand.

Social (demographic)

During 2012-2018 India's population is on the rise. The increase in the population in 2015 was not only due to migration and natural increase, but also due to the formation of two new states of the Federation - the Republic of Crimea and the city of Sevastopol.
...
Environmental pollution is a social and environmental factor. According to the WHO, environmental factors form up to …% of human pathologies. The ecological situation is one of the main components that directly affect life expectancy, health status and the rate of aging of the body (including the skin). The race for technical innovations and comfort has led to a deplorable state of the atmosphere, drinking water, food.
...

Economic

GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced per year in all sectors of the economy on the territory of the state for consumption, export and accumulation, regardless of the nationality of the factors of production used. It is the main, most complete official indicator of public welfare. The absolute and relative values of GDP give an idea of the general material well-being of the nation and the dynamics of its growth / decrease, since the higher the level of production, the higher the welfare of the country.

Chart 12. Dynamics of India's GDP, 2015-2020 (Jan.-Sept.),% of the previous year, trillion Rs.

Thus, in 2020 the world economy will be in the deepest recession in the last 80 years.
...

The industrial production index shows the total volume of all industrial production, utilities, etc. in terms of money.
...

inflation rate. Inflation in 2019 (…%) took the second place in the entire history of observations - it was lower only at the end of 2017 - …% (against the backdrop of a record harvest). In 2018, inflation amounted to …%. The decline in inflation is a positive factor contributing to the development of the industry in India.
...

Diagram 15. Dynamics of the share of medical services in the structure of paid services of the population of India, 2014-2019, %

This trend is positive both for the paid medical services market in general and for the cosmetology market in particular. In addition, the structure of paid services has undergone changes over the analyzed period. There was a redistribution of the population's expenditures in favor of expenditures on public utilities and transport services and a reduction in expenditures on household, tourist and cultural services.

technological

Lack of qualified personnel. As noted earlier, the studied market is characterized by a large share of the shadow segment. Pseudo-specialists are actively doing procedures in unlicensed places, which, according to industry players, discredits cosmetology. Proximity with China gives ... No one undertakes to control the activities of ""burglars"". Government agencies control licensed clinics, and it is very difficult to control the part of people who provide services illegally.
...

Political

Credit policy. Today it is quite difficult to imagine the progressive development of the economy without the active participation of the credit system. It should also be noted that the assessment of the availability of credit resources for both legal entities and individuals is a significant indicator that allows assessing not only the demand for credit funds, but can also serve as a reflection of the real economic situation both in the region and in the economy as a whole.
...

State control, regulation, legislation. Any cosmetology clinic must comply with the order of ... various regulations. The list of standards in connection with the specifics of medical activity, checked by Roszdravnadzor and Rospotrebnadzor, is long. On compliance with licensing requirements - the order of ... regulations. On the issue of ensuring the quality and safety of medical activities - ... regulatory requirements. On the issue of circulation of medicines - ... This list is constantly updated.
...

State support. In the context of the economic crisis and the coronavirus pandemic: the Government Commission on Improving the Resilience of the Indian Economy, chaired by First Deputy Prime Minister Andrey Belousov, approved a list of sectors of the economy most affected by the deteriorating situation due to the spread of a new coronavirus infection, to provide priority targeted support.
...

1.7. Analysis of sectoral indicators of financial and economic activity

Consider the financial and economic indicators of the cosmetology market for 2015-2019. It should be noted that the main activity of most clinics providing cosmetology services, according to OKPD2, is “Activities of hospital organizations” (86.1). Having studied the financial ratios of the main market participants, GidMarket analysts came to the conclusion that the average values of the performance indicators of the main market players correlate with the indicators of the Hospital Organizations industry as a whole. In this regard, further in this section, the indicators of the industry ""Activities of hospital organizations"" are considered.

Gross margin
Gross margin is gross profit divided by sales revenue (excluding excise taxes and VAT). Gross margin shows how much gross profit falls on a unit of revenue. Gross profitability serves as an assessment of the economic efficiency of an enterprise, which reflects the rational use of labor, material, monetary and other resources.
...

Return on profit
The profitability indicator in the industry as a whole at the end of 2019 is …%, having fallen compared to 2018 by … p.p. Regarding the profitability in all industries of India, the indicators of the industry in the study period were lower than the indicators of the Indian economy as a whole, in 2019 - by ... p.p.
...

Absolute liquidity
The cosmetology industry in 2016-2019 in general, it has indicators of absolute liquidity slightly higher than in all sectors of the economy. The maximum value of the indicator was noted in 2017 – … p.p., which is by … p.p. more than in all sectors of the Indian economy.
...

Business Activity Indices
...

Financial stability

Financial stability indicators in 2016-2019 in general for the industry were above the normative value (…%), which indicates a sufficient amount of own working capital in the industry, necessary for its financial stability. At the same time, in 2019, there was a decrease in the value of the indicator by … p.p.
...

Part 2. Competitive Analysis in the Indian Cosmetology Market

2.1. Major players in the market

The cosmetology market is represented by a large number of players, including narrow-profile and multi-profile clinics, clinics with public and private ownership, offices in beauty salons and private cosmetologists.
...

2.2. Market shares of the largest competitors

As of 2019, the largest operators of the cosmetology market in India are the Network of Clinics … and the Network of Clinics …, occupying …% and …% of the market, respectively. The share of … and … accounts for …% of the market each. In fifth place is … the market share of this organization is …%. Other companies account for …% of the cosmetology market, which indicates its great fragmentation.
...

2.3. Profiles of major players
...

Diagram 21. Dynamics of revenue volume of the largest operators of the cosmetology market (TOP-5) in India, 2015-2019, million Rs.

Part 3. Analysis of the consumption of cosmetology

3.1. Estimation of the volume of consumption of cosmetology per capita

Estimation of per capita consumption of cosmetology was made by GidMarket analysts on the basis of the ratio of the Indian market volume to the population of India.
During 2015-2019 the volume of consumption of cosmetology services per capita has either increased or decreased. In 2019, the volume of consumption of these services per capita amounted to … Rs./person, which is …% more than in 2018. At the same time, the average annual growth rate of the indicator value in 2015-2019 amounted to …%. Since 2015, the volume of consumption in the cosmetology market in India has increased by …%.
...

3.2. Market Saturation and Estimated Market Potential in India

The cosmetology industry does not stand still; every year new methods, preparations and devices appear in it. In terms of life cycle, the cosmetology market in India is in the stage of...
This is evidenced by:
...

3.3. Description of consumer preferences

The demand for cosmetology services is determined by many factors that can be differentiated by the main segments of consumer-patients (premium, business and mass segment). General trends in the development of commercial medicine and cosmetology, including those on the supply side, are focused on increasing the quality, expanding the range and complementarity of services. But on the demand side, only the most highly profitable segments are focused on obtaining high-quality, effective paid medical services. While the most massive segment is only interested in the economic accessibility of such services, which can be generally explained by the prevailing realities of Indian socio-economic development.
...

3.4. Price analysis

The dynamics of prices for cosmetology services is due to the general level of consumer inflation, rising labor costs, and the level of competition in the market. Prices for services in the field of cosmetology are not always easy to compare, since there are very different types of procedures here.
...

Table 15. Average prices for injectable cosmetology in the Union Territories, 2015-2020 (10 months), Rs./arb.

In 2019, the average price of 1 service in India was … Rs. The maximum price is recorded in … Union Territories (… Rs., which is …% higher than the average for India), … Union Territories (… Rs., which is …% higher than the average for India), … Union Territories ( … Rs., which is …% higher than the average for India) and … Union Territories - … Rs., which is …% higher than the average for India. In other federal districts, prices for injectable cosmetology in 2019 were below the average Indian prices.
...

List of diagrams

Diagram 1. Dynamics of the market volume of cosmetology services in value terms in India, 2015-2019, billion Rs.
Diagram 2. Dynamics of the volume of the market of cosmetology services in physical terms in India, 2015-2019, million services
Diagram 3. Gender affiliation of consumers of cosmetology services, %
Diagram 4. Market structure by type of organizations providing cosmetology services, %
Diagram 5. Structure of the market of cosmetology services by type of procedures, %
Diagram 6. Market structure of non-injection cosmetology services by procedure type, %
Diagram 7. Structure of the provision of services in the field of cosmetology in India by Union Territories, %
Diagram 8. Dynamics of the population of India, as of January 1, 2012-2020, million people, thousand people
Diagram 9. Population forecast in India for the period 2021-2024, million people
Chart 10. Dynamics of average life expectancy in India, 2015-2019, years
Diagram 11. Dynamics of real incomes of the population of India, 2015-2020 (9 months), %
Chart 12. Dynamics of India's GDP, 2015-2020 (Jan.-Sept.),% of the previous year, trillion Rs.
Chart 13. Monthly dynamics of the US dollar against the rupee, 2015-2020 (Jan-July), Rs. for 1 US dollar
Chart 14. Dynamics of the inflation rate in India, 2015-2020 (Oct.), %
Diagram 15. Dynamics of the share of medical services in the structure of paid services of the population of India, 2014-2019, %
Diagram 16. Dynamics of the average interest rate on loans to legal entities, 2014-2020, %
Diagram 17. Profitability of profit before tax (profit of the reporting period) in the field of cosmetology in comparison with all sectors of the Indian economy, 2015-2019, %
Diagram 18. Current liquidity (total coverage) in the field of cosmetology for 2015-2019, times
Chart 19. Business activity (average turnover period of receivables) in the field of cosmetology, for 2015-2019, days days
Diagram 20. Shares of the largest competitors in the cosmetology market in India in 2019, %
Diagram 21. Dynamics of revenue volume of the largest operators of the cosmetology market (TOP-5) in India, 2015-2019, million Rs.
Diagram 22. The volume of consumption in the cosmetology market per capita, 2015-2019, Rs./person
Figure 23. Stage of the life cycle of the cosmetology market
Diagram 24. Preferences of consumers of cosmetology services by type of organization, %
Diagram 25. Reasons for choosing a particular clinic, %
Diagram 26. Cosmetology market volume forecast in 2020 - 2024 – under the scenario of one quarantine, billion Rs.
Diagram 27. Cosmetology market volume forecast in 2020 - 2024 – under the scenario of two quarantines, billion Rs.

List of tables

Table 1. Classification of drugs for injection cosmetology
Table 2. Industrial production index by state of India (in % of the previous year), 2015 - 2019
Table 3. Analysis of the impact on the industry of the state aid proposed to date
Table 4. STEP analysis of factors affecting the cosmetology market
Table 5. Gross margin of the cosmetology industry in comparison with all sectors of the Indian economy, 2015-2019, %
Table 6. Absolute liquidity in the field of cosmetology in comparison with all sectors of the Indian economy, 2015-2019, times
Table 7. Financial stability (security of own working capital) in the field of cosmetology in comparison with all sectors of the Indian economy, 2015-2019, %
Table 8. Main companies participating in the cosmetology market, 2019
Table 9. Basic information about the participant of the cosmetology market Network of clinics ""Linline""
Table 10. Basic information about the participant of the cosmetology market Chain of clinics ""Medi""
Table 11. Basic information about the cosmetology market participant Seline
Table 12. Basic information about the cosmetology market participant Beauty Institute ""Galaktika""
Table 13. Basic information about the cosmetology market participant Institute of Plastic Surgery and Cosmetology
Table 14. Consumer price indices in the medical services market in the Union Territories of India, 2015 - 2020 (Jan-Oct), %
Table 15. Average prices for injectable cosmetology in the Union Territories, 2015-2020 (10 months), Rs./arb.
Table 16. Evaluation of factors of investment attractiveness of the cosmetology market

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