Estee Lauder Companies Taps India for the Next Big Beauty Innovation
Estée Lauder Companies (ELC) is looking at India as the center for new beauty innovations under a new project that will engage local entrepreneurs and start-ups. The beauty powerhouse, which operates legendary brands such as MAC and Clinique, has joined hands with Startup India, a part of India's Ministry of Commerce and Industry, to help facilitate India's dynamic beauty and personal care industry.
"We are proud to be the first international beauty company to collaborate with Startup India to reimagine the future of beauty by developing the next generation of entrepreneurs – particularly women, who have been the bedrock of our business for so long", stated ELC President and CEO Stéphanie de La Faverie. She pointed out the rapidly changing beauty landscape and thriving tech-oriented ecosystem of India as a major catalyst for innovation.
This partnership is an extension of ELC's incubator program Beauty & You, launched in 2022 in collaboration with domestic retailer Nykaa. The initiative has already seen 1,500 applications from more than 150 cities, providing grants, mentorship, and access to industry for emerging beauty brands — most of which have been founded by women. Heartened by this reception, ELC is going bigger on encouraging female entrepreneurship in the region.
Four outstanding firms were declared winners of the Beauty & You scheme in November 2024 after live pitch sessions presided over by senior ELC executives such as de La Faverie and Executive Chairman William P. Lauder. The winning firms were science-based skincare company SkinInspired, body care product pioneer Not Just Vanilla, clinically proven hair growth product Amright, and online marketplace Journey of Objects. Some of the past winners have been Biome Laboratories, Call of the Valley, and C16 Biosciences.
Shri Sanjiv, DPIIT Joint Secretary, stressed the significance of such partnerships: "India's beauty sector is transforming significantly, and partnerships like this are critical in driving innovation and entrepreneurship. We look forward to collaborating with The Estée Lauder Companies to build new avenues for upcoming beauty brands in India".
India’s beauty and personal care market is projected to generate $33 billion in revenue by 2025, according to Statista, making it an increasingly attractive region for global beauty players. ELC itself has been expanding its footprint in India for over two decades, acquiring a stake in luxury Ayurvedic brand Forest Essentials in 2013 and introducing international brands like MAC and Bobbi Brown through a strategic alliance with Nykaa.
Other beauty behemoths are doing the same. Unilever's Indian arm picked up premium skincare firm Minimalist in January 2024, while Unilever Ventures spearheaded a $5 million funding for homegrown luxury brand RAS Luxury Skincare. International celebrity-owned brands such as Rihanna's Fenty Beauty, Kylie Cosmetics, Rare Beauty, and Huda Beauty have also entered the Indian market, seeing its huge potential.
European beauty giants are also striking out: Chanel launched its first-ever standalone beauty store in Mumbai in early 2024, and Sephora consolidated its foothold through an alliance with Reliance Retail Group.
With a vibrant start-up ecosystem, growing consumer sentiment, and the support of world heavyweights like ELC, India is moving full steam towards becoming a beauty innovation hub globally. With each new investment from ELC, the next massive beauty innovation is likely to hail from an Indian start-up – redefining the industry's future on a global platform.
