Estée Lauder Companies (ELC) is tapping India for the next big beauty innovation through a new programme to support entrepreneurs and start-ups focusing on beauty and personal care in the country.
The owner of MAC and Clinique has inked a new partnership with Startup India, part of India’s Ministry of Commerce and Industry, designed to foster new businesses.
“We are honoured to be the first global beauty company to partner with Startup India to help reimagine the future of beauty by nurturing the next generation of entrepreneurs – especially women, who have long been the backbone of our industry, from our founder, Mrs Estée Lauder, to today’s inspiring founders,” said ELC President and CEO Stéphanie de La Faverie.
“India is a key strategic market for ELC, with a rapidly evolving prestige beauty industry and a vibrant, tech-driven start-up ecosystem redefining innovation.
“As the prestige beauty leader in India, ELC remains deeply committed to shaping the future of beauty in this dynamic landscape.”
The partnership is an extension of ELC’s Beauty & You incubator scheme, which launched in 2022 with local retailer Nykaa.
So far, the scheme has attracted 1,500 applicants from over 150 cities and offers entrepreneurs grants, mentorship and industry access.
The majority have been women-led, leading ELC to expand the initiative to specifically targeting female entrepreneurship.
Four companies were crowned winners of the Beauty & You India 2024 scheme in November last year.
It followed live pitch sessions in front of a panel of expert judges that included de La Faverie, and ELC Executive Chairman William P Lauder among other top executives from the beauty giant.
The successful startups were science-backed skin care company SkinInspired, results-driven bodycare company Not Just Vanilla, clinically tested hair growth solution Amright, and ecommerce marketplace Journey of Objects.
Biome Laboratories, Call of the Valley and C16 Biosciences were among the winners in 2023.
Commenting on the launch of the new partnership, Shri Sanjiv, Joint Secretary of Department for Promotion of Industry and Internal Trade (DPIIT), part of India’s Ministry of Commerce and Industry, said: “India’s beauty industry is undergoing a major transformation, and collaborations like this play a pivotal role in fostering innovation and entrepreneurship.”
“We are excited to work with The Estée Lauder Companies to create new opportunities for emerging beauty brands in India.”
The country’s Beauty & Personal Care market is projected to generate a revenue of US$33bn in 2025, according to Statista, and a number of beauty brands are doubling down in the region.
ELC acquired a stake in Forest Essentials, the India-based luxury Ayurvedic brand, in 2013 and over the past two decades has launched 14 local brands across make-up, skin care, hair care and fragrance.
The US beauty giant has also previously partnered with Nykaa to expand MAC and Bobbi Brown into India in 2016 and 2017.
Meanwhile, Unilever’s Indian subsidiary acquired premium beauty brand Minimalist in January this year.
Premium Indian beauty brand RAS Luxury Skincare also raised US$5m in a funding round led by Unilever Ventures, the FMCG giant’s investment arm.
Rihanna’s Fenty Beauty, Kylie Cosmetics, Rare Beauty and Huda Beauty are among the celebrity-led brands to enter the market in the past few years.
Premium brands such as Nars, Dr Dennis Gross, Urban Decay and Laura Mercier have also jumped on the opportunity.
European beauty giants have also invested in India, with Chanel opening its first beauty shop in Mumbai in January 2024.
Sephora partnered with India’s The Reliance Retail Group to boost its reach in the country.