Flaunt Ayurveda as Made in India

Authors Dr Jyoti Kainth and Divya Kapur has indicated towards a great opportunity for Ayurveda. In Busines World , Jyoti-Divya say,India can cash in on its age old tradition of natural goodness and Ayurveda and proudly flaunt the ‘Made in India’ tag, reflecting its exclusivity and originality of the ingredients and skills that cannot be replicated elsewhere.

The buzzword today is ‘Make in India’. The new government has prioritised the revamping of India’s brand image from a services-industry led economy to a manufacturing hub rivaling China. This research is an effort to explore a potential market segment where the insignia “Made in India” might evoke a more positive response from the consumer, making it a parameter of judgment and lending Indian goods an aura that helps them sell better!

One of India’s most prized possession is its rich heritage and colourful culture, a fact endorsed by the world when international celebrities like Madonna flaunt Indian henna tattoos, and acclaimed perfumers use undertones of Indian herbs andspices in their fragrances.The world has already accepted Yoga and Ayurveda as alternative medical and lifestyle therapies.

Despite this ancient know-how, the rich cultural heritage and the exoticism associated with Indian products, they have not been able to make a mark for themselves globally. Even though established designers incorporate Indian designs and fabrics occasionally (e.g. Hermes had a limited edition saree line in 2011, Armani used Indian embroideries for gowns, and Chanel featured India’s royal heritage in its Paris/Bombay collection designed by Karl Lagerfeld) they are still skeptical and wary of brandishing the ‘Made in India’ tag.

Even manufacturers in India that supply to established luxury brands are forbidden from disclosing their trade, as people abroad are wary of manufacturing in India and perceive products as being of inferior quality, question the possible use of child labor, hazardous working conditions and environmental issues. Indian manufacturing is mostly considered to be sweatshops, but when people think luxury they think handcrafted, customized products made by highly skilled artisans in places like Italy.

However, there is one sector where India can be recognized for its unmatched expertise – the natural beauty product sector. India can cash in on its age old tradition of natural goodness and Ayurveda and proudly flaunt the ‘Made in India’ tag, reflecting its exclusivity and originality of the ingredients and skills that cannot be replicated elsewhere. People abroad are in awe of Indian products that stand apart from the rest, however, these products still have a long way to go.

The growth in this sector is extremely promising and has high growth potential due to increased consumer awareness, negative publicity of synthetic products and adoption of healthy lifestyles that often equate themselves with going ‘natural’. According to a report published by Kline and Company on Natural Personal Care, this sector has experienced a CAGR of 11.3 per cent since 2008 and is expected to reach $46 billion by 2018. All the factors point in one direction: That natural skincare products are here to stay and are raring to grow!

A research was undertaken by the authors to understand the ‘Made in India’ effect on these natural herbal skincare products and if opportunities in this sector can be capitalized on due to its uniqueness and country of origin effect. The research aimed at comprehending the role of the country of origin effect on luxury herbal skincare products. If the managers can leverage the associative value of this tag to their advantage and enter this sector for manufacturing and exporting such products. The study focused on one such luxury herbal brand – Forest Essentials. This was the first Indian brand to entice a global beauty conglomerate like Estee Lauder into acquiring a minor stake in the brand in 2008, thereby gaining from its expertise and presence in the global arena and was the first Indian brand to be a part of the Sephora India store.

Country of origin is the reputation, stereotype and image that are associated with a product from a particular country and this image is generated by history, traditions, socio-economic and political background etc. It encompasses various categories like country of design, country of manufacturing, country of assembly and country of brand.

How many times have you seen a ‘Made in China’ tag behind an electronic item and thought that it would last you a lifetime? But a car from Germany is appealing due to its heritage and perceived quality engineering, fashion products from Italy are more appealing, and a “Made in Paris” tag behind a perfume is endearing.The researchtried to understand what particular product (amongst a few chosen for the survey), if it carried a ‘Made in India’ tag, would be of greater preference to the buyer because of the Indian association.

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