- Rich Cultural Heritage: Tamil Nadu is known for its rich cultural heritage and traditions, providing a unique backdrop for lifestyle and personal care Startups to draw inspiration and create products that resonate with consumers.
- Skilled Workforce: The State’s strong educational institutions produce a skilled workforce with expertise in various fields, including product development, marketing and business management, essential for building a successful Startup.
- Consumer Market: Tamil Nadu has a diverse and sizable consumer market with a mix of urban and rural populations. This diversity allows Startups to test and refine their products to cater to a wide range of consumer preferences.
- Startup Ecosystem: The presence of incubators, accelerators and co-working spaces in cities like Chennai provides valuable support and resources to early-stage Startups in the Lifestyle and Personal Care sector.
- Cultural Awareness: Entrepreneurs in Tamil Nadu have a deep understanding of the local culture and consumer behaviours, which is invaluable when creating products that resonate with the regional audience.
- Access to Natural Resources: The State’s geography and climate make it suitable for sourcing natural ingredients used in Lifestyle and Personal Care products, promoting sustainability and locally sourced materials.
- Quality of Life: Tamil Nadu offers a high quality of life, attracting and retaining talent, which is crucial for Startups in the Lifestyle and Personal Care sector that rely on skilled professionals for product development and marketing.
- Government Support: The Tamil Nadu Government has introduced policies and initiatives to promote Startups, offering incentives, funding and regulatory ease to encourage entrepreneurship in various sectors, including Lifestyle and Personal Care.
- Infrastructure and Logistics: The State’s well-developed infrastructure and logistics networks ensure efficient distribution and transportation of products, both within Tamil Nadu and to other regions.
- Cultural Events and Festivals: Tamil Nadu hosts various cultural events, festivals and exhibitions, providing opportunities for Startups to showcase their products and gain visibility.
Lifestyle & Personal Care
Advantage Tamil Nadu
Introduction
A diverse range of goods and services intended to improve people’s health and beauty make up the vibrant and quickly expanding Lifestyle and Personal Care sector. It has the ability to meet the different requirements, preferences and aspirations of people all around the world. The Lifestyle and Personal Care sector encompasses a wide range of products and services, from workout gear and wellness services to skincare and cosmetics. This industry is always developing to keep pace with shifting customer needs.
The rising emphasis on self-care and personal grooming and understanding of these topics are some of the major factors driving the sector’s expansion. People are more interested than ever in feeling and looking their best in today’s image-conscious world, which is fueling demand for goods and services that can support these objectives. They include skincare goods, haircare products, exercise equipment and a wide range of other products that support both physical and emotional well-being.
The Lifestyle and Personal Care sector’s market size has grown significantly in recent years. Industry statistics state that the global market for personal care goods alone was estimated to be worth over $450 billion in 2021 and is anticipated to keep growing. Numerous variables, such as increased disposable incomes, shifting consumer habits and rising awareness of the value of good health and attractiveness, are responsible for this growth.
The flourishing and diverse industry of Lifestyle and Personal Care is propelled by people’s desire for wellness and self-improvement. This industry, which has a global market worth hundreds of billions of dollars, keeps innovating and adapting to satisfy the changing demands and preferences of people everywhere. It is positioned for long-term growth in the years to come as society places more emphasis on self-care and personal grooming.
Initiatives
- Make in India Campaign: The Union Government’s “Make in India” campaign lays emphasis on local manufacture and production of commodities, including personal care and lifestyle products. It promotes indigenous products and businesses in order to boost domestic production, create jobs and reduce imports.
- Regulatory Framework: In partnership with agencies such as the Food Safety and Standards Authority of India (FSSAI), the government has developed regulatory standards and procedures for the production, labelling and marketing of personal care and cosmetic items. This safeguards the product’s quality and the user’s safety.
- Startup India: Startup India offers assistance and incentives to firms in the Lifestyle and Personal Care sector. They include monetary incentives, tax breaks and simplified regulatory compliance, all of which promote industrial innovation and entrepreneurship.
- Skill Development Programmes: The State Government funds skill development efforts to teach people how to be beautiful and take care of themselves. These programmes help to produce a skilled workforce for the industry, which leads to greater job opportunities.
- Export Promotion: The government assists sector exporters through initiatives such as the Merchandise Exports from India Scheme (MEIS). These initiatives are intended to promote the export of personal care and recreational items to international markets.
- Promotion of Ayurveda and Herbal Products: In keeping with the global trend towards natural and herbal products, both the Union and State governments foster the manufacturing and sale of Ayurvedic and herbal personal care products. They provide funding for research and development in this domain.
- Consumer Awareness Campaigns: Awareness campaigns are conducted in the State to educate the public about the importance of using safe and certified personal care products. These campaigns aim to protect consumers from counterfeit and inferior goods.
- Ease of Doing Business: Licensing and regulatory requirements have been simplified to ensure ease of doing business. This makes it easier to establish and expand personal care and lifestyle businesses.
- Financial Support: Financial institutions and banks provide credit to entrepreneurs and businesses in the industry, supporting investment and expansion.
- Skill Development in Traditional Crafts: Initiatives to protect and promote handicrafts and traditional personal care products (e.g., Siddha Ayurvedic items) are organised, providing employment to local artists.
Resources
Government Ministry/ Department supporting Lifestyle and Personal Care Market
Department for Promotion of Industry and Internal Trade (DPIIT)
Ministry of Health and Family Welfare
Central Drugs Standard Control Organisation (CDSCO)
Ministry of Consumer Affairs, Food & Public Distribution of India
Ministry of Chemicals and Fertilizers
Industry Associations supporting Lifestyle and Personal Care Market
Indian Beauty & Hygiene Association
Feminine and Infant Hygiene Association
Indian Soaps and Toiletries Maker’s Association
The Food and Drug Administration (FDA)
Market Factors supporting Lifestyle and Personal Care Market
India’s direct-to-consumer (D2C) market, which is likely to reach a size of $100 Bn by 2025, has grown exponentially in the last few years. Several factors, including higher Internet penetration, growth of digital infrastructure and rise in the number of millennials, have shored up the D2C and Lifestyle brands.
Home to more than 190 Mn digital shoppers, India has the world’s third largest online shopping base. It is this burgeoning ecosystem that the new-age D2C and lifestyle brands aim to capitalise on, on the back of the growing appetite of Indian consumers for innovation and waning loyalty towards traditional players.
Of this, fashion and clothing Startups have the highest potential and are expected to grow to $43.2 Bn by 2025, according to an Inc42 report.