New Delhi, Aug 21 (AP) India’s most valuable brand is struggling to compete against rivals like beauty brand Bharti Airtel, a move that has hit the country’s most sought-after cosmetics brands hard.
In the first two months of 2017, the cosmetics industry suffered a $100 million loss as the government took a hard line against black market sales.
That’s when Bhartia Airtels (BHA), the countrys biggest cosmetics company, said it would sell its brands to foreign buyers for Rs 500-1,000 a piece.
The government, which banned most foreign imports, has now announced plans to sell its brand in India for around Rs 1,000.
India’s largest cosmetics brands, like the cosmetics brand Huda Beauty, are also affected.
India is the biggest market for beauty products globally.
“It’s an industry that’s struggling.
We’ve lost our credibility.
We need to change the mindset of people,” said BHA founder, Anushree Singh.BHA had bought beauty brand Hada Beauty in September 2016, with the idea of launching a new cosmetics line.
Its new product line is expected to be launched in March this year.
“There are many brands like Huda that have gone bankrupt,” Singh said.
The company has also been hit by an uptick in counterfeit goods.
It sold its brands in the US, China and Brazil, and sold products from a China-based distributor.
The company also has a strong position in the Indian cosmetics market, with a 30 per cent share.
The Indian government, though, has not allowed foreign companies to import products.
The countrys government also says the products cannot be exported to countries that are not listed in the UNsanctions blacklist.
Bha is also losing money on its cosmetics sales, which are mostly to overseas buyers.
Its brand, which is the oldest in the country, was valued at Rs 1.2 billion ($1.7 billion).
The brand’s loss has come at a time when the country is struggling with the cash crunch.
The government’s ban on imports of foreign cosmetics and their cosmetics products was imposed last year in response to reports of rampant corruption in the state-run beauty industry.
The ban was widely seen as a response to corruption allegations.
India has a history of importing luxury goods and cosmetics from China.
The number of luxury goods imported from China has more than doubled to more than 3,000 from 2,000 in 2014.
The most common products exported to India are luxury shoes and handbags.