SWOT Analysis of Lakme. Lakme is an Indian beauty and cosmetic company. Simone Tata and JRD Tata laid the foundation of the cosmetic brand in 1952. The headquarter of the company is in India.
Some of the main products and services of Lakme are as follows;
- E-gift cards
- Men’s Grooming
- Summer care
- Makeup serum
- Facewash and cleanser
- Hands and foot care
- Skin serum
- Hair shampoo and conditioner
Key statistical facts and figures about Lakme are as follows;
- The annual revenue of Lakme in 2023 was 21,827.5 million Indian Rupees
- The net income of the cosmetic brand was 541.60 million Indian Rupees
- The total assets of the company in 2023 were 80,815.30 million Indian Rupees
Some of the top competitors of Lakme are as follows;
- The Body Shop
- Bobbie Brown
- Urban Decay
- MAC Cosmetics
- L’Oreal Paris
Today, we’ll discuss the swot analysis of Lakme. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the beauty and cosmetic brand. Here’s the swot analysis of Lakme as follows;
Strengths of Lakme
Some of the main strengths in the swot analysis of Lakme are as follows;
Lakme is a well-established and well-recognized Indian cosmetic brand. The company is offering beauty and cosmetic products for the past more than 60 years. It has allowed the company to earn the trust and confidence of customers.
According to an estimate, Lakme’s product portfolio consists of more than 300 products and services. The company offers a wide range of products ranging from skincare, foot care, beauty, cosmetics, e-gift cards, and various other products and services.
According to an estimate, the worth of the personal and beauty care market is 97000 crore. Out of which, Lakme has a market share comprising 25%.
Beauty Salon Extension
Lakme has recently launched a beauty salon brand extension service. According to an estimate, the company has a network of 1200 beauty-assisted stores; 485 beauty salons across India. It is the highest and largest network in the Indian market.
Hindustan Unilever is the parent brand of Lakme. The parent company has got a strong supply chain and distribution across the country. It has significantly helped the subsidiary company Lakme in expanding and distributing beauty products in various regions across the country.
Lakme conducts Fashion Week bi-annually in Mumbai. In fact, various leading Bollywood actresses like Ananya Pandey, Kareena Kapoor, Kajol Devgn, and Shraddha Kapoor have been Lakme’s brand ambassadors. They help the company with the promotion of its products and services.
Weaknesses of Lakme
Some of the main weaknesses in the swot analysis of Lakme are as follows;
Salon Quality Issues
Some of Lakme’s outlets and salons aren’t providing quality beauty services due to a lack of expertise in some regions. It results in the form of negative word-of-mouth marketing and jeopardizes the reputation of the company.
No Product Differentiation
It is no doubt, Lakme has a well-diversified portfolio by offering a wide range of products and services. But the company’s beauty and cosmetic products and services are the same just like others, and you won’t find any differentiation among them. However, the element of differentiation allows the company to strengthen its position in the market.
Opportunities for Lakme
Some of the available opportunities in the swot analysis of Lakme are as follows;
Community Growth Projects
Lakme is earning a significant amount of revenue and profit from the Indian market. In order to emotionally connect with customers, the company should launch and engage in community projects. It would help the company to strengthen its position in the market because customers would buy from such brands that care about the local community.
The trend of premium quality products is increasing for the past few years. Therefore, Lakme should take advantage of the premium quality trend, and launch premium products for status-conscious customers. It would amplify the company’s growth and profitability to a great extent.
The thing beauty, fashion, and lifestyle industry is that its trends are always changing. Lakme is operating its business in the developing and fast-evolving Indian economy. Therefore, the company should offer them such products and services relevant to their needs and wishes.
Threats to Lakme
Some of the potential threats in the swot analysis of Lakme are as follows;
Skin Allergic Reactions
Beauty and skincare products aren’t suitable for everyone’s skin, and they cause allergic reactions. There are hundreds of reports on allergic reactions caused by beauty products. However, such types of issues are declining the sale and revenue of the cosmetic company.
The beauty and fashion industry is highly competitive. There are top competitors like Maybelline, Revlon, and L’Oreal, and they have significantly held the market share of the beauty industry. However, it is highly difficult for the Indian brand to maintain its market position in the presence of such global brands.
Counterfeit products are commonly available in emerging economies. They copy the packaging and logo of top brands like Lakme and sell low-quality products. Often, the disguised products and the real ones are almost identical and it is nearly impossible for customers to differentiate among them. Resultantly, they blame the top brand for providing cheap materials.
Conclusion: Lakme SWOT Analysis
After an in-depth study of the swot analysis of Lakme; we have realized that Lakme is an Indian cosmetic leading brand. If you are learning about the business of the Lakme, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.