L'Oréal, Colgate Go Upscale, But Mass Market Holds Firm

Global consumer giants target premiumization as India set to become third-largest economy

- Suneera Tandon

Large consumer goods makers such as L'Oréal and Colgate-Palmolive Co. pointed to a rising preference for premium products in India as an opportunity that could drive growth for the companies in the country in the coming years. However, both companies said India continues to remain a value market with consumers of oral care and beauty products still entering the market, often buying lower-priced options or using these products less frequently.

"India as a country [is] on its way to being the third-largest economy by 2030 and [is] the fastest-growing economy among the larger economies in the world. And while that has slowed down, it's slated to be the fastest," said Prabha Narasimhan, MD and CEO, Colgate-Palmolive (India), at the Consumer Analyst Group of New York Conference in Florida, US.