Lakme is the leader in cosmetics brands across the globe. The brand name was named after the French Opera and as we all know Lakme is another form of the Goddess Lakshmi. Goddess Lakshmi is known for the blessings of wealth.
Let us now see more about the company’s essential factors like strengths, weaknesses, opportunities, and threats through this SWOT analysis.
About Lakme
Lakme is the most popular Indian cosmetic brand established by the TATA Group. The company today is owned by Hindustan Unilever.
Lakme delivers a broad range of personal and beauty care products like hair care, makeup, and skin care products. The brand is very well known for its high-quality and cutting-edge products and has a great market presence in India.
Lakme at a Glance
| Founders | J.R.D Tata
Simone Tata |
| Year of Establishment | 1952 |
| Annual Revenue (as of FY24) | Rs 1,268 crore |
| Origin | India |
| Type of Company | Private |
| Total no. of employees | 500- 1,000 employees |
SWOT Analysis of Lakme
SWOT analysis helps organizations analyze their strengths, weaknesses, opportunities, and hazards in detail.
Let’s now see every detail step by step.
Strengths of Lakme
The strengths of Lakme include –
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Higher brand position
Lakme is the market leader in the beauty and cosmetic industry. The company performs high-profile campaigns and targets popular beauty parlors and salons. By integrating modern tools like online scheduling software, Lakme enhances customer convenience and accessibility. It also hosts fashion events and promotes advertising to stay in the minds of customers 24/7..
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Excellent product line
Lakme contributes hugely to the beauty of women tickets excellent product line. Lakme is very well known for offering a broad range of cosmetics that are quite innovative always and are problem solvers for women’s cosmetic issues.
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Broad distribution system
Since Lakme is undertaken by Hindustan Unilever, the parent company is Tata Group. Hindustan Unilever is already a popular and established brand so let me use an extensive distribution channel to make their products easily accessible in the market. In terms of traditional channels, the Lakme products make use of an out-of-the-box distribution system to make Lakme products available at salons, parlors, and pharmacists.
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Celebrity collaborations
Lakme targets appropriate celebrities to showcase their brand. This helps the company position itself in the minds of customers for a long time.
Weaknesses of Lakme
Lakme witnessed weak points in these areas –
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Limited market presence
Lakme is present in the value-for-money segment and it has been a great market leader in the color cosmetic segment. Its white range of products and prices has satisfied customers to a greater level. But when we talk about the premium market position then Lakme lags behind here.
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Differentiation Issue
Lakme’s range of portfolios creates confusion in the minds of the customers. Sometimes a few products of the company differentiated but some didn’t.
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Quality issues
As per the recent report, the lowering quality of Lakme salons may give a negative image of the brand that may further impact the growth and since of the company in the coming future.
Opportunities for Lakme
Below mentioned are the opportunities for Lakme –
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Changing lifestyle
Today’s developed economies have become saturated and the population has been migrating. Also, the tastes and preferences of customers are changing along with the fluctuating education and changing lifestyles. This has given her eyes to the sudden growth in the grooming sector.
As per the demand, people are now focused on grooming themselves to look confident and smart. Lakme can take advantage of this sudden demand and can pull a huge amount of revenue.
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Rise in the premium segment
The current market can see development in the requirement for premium segment goods. With this Lakme can easily expand its presence in this segment while becoming a giant in the grooming sector.
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Revamping growth strategies
The company has a lot of opportunities to create participative and collaborative community campaigns that will build a better brand image and may develop further opportunities.
Threats to Lakme
Lakme should be aware of these major threats in the grooming industry –
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High competition
Intense competition from the international and local players on major factors like availability and price poses a big threat to Lakme.
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Fake products
Counterfeit products May impact the brand image directly in the small and rural areas.
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Allergy issues
Changes in lifestyle and some skin-related issues are getting heads over nowadays. Due to this, companies in the personal care industry are falling short of sales due to allergy-related problems.
Top Competitors of Lakme
Here are the top 5 competitors of Lakme –
- L’Oreal: This is a global beauty company offering a range of products like hair care, skincare, makeup, etc. Its Maybelline and Garnier product line commits directly to Lakme.
- MAC cosmetics: It’s a well-known company offering professional products and competence directly with Lakme and the premium beauty sector.
- Revlon: It’s a big established Global company with a variety of beauty products like hair care, skincare, makeup, etc.
- Colorbar: It is also a well-known Indian beauty product that offers different services like skincare and makeup products.
- Maybelline New York: This is a subsidiary of Loreal and competes with Lakme directly in the makeup category.
Conclusion
The SWOT analysis of Lakme shows its strong market presence in the Indian beauty sector. Its strength lies in its high-quality products and innovative marketing strategies. The company consistently capitalizes on the upcoming trains and consumer choices.
But it also faces challenges like severe competition and the grapes like new brands coming into the market. The company should address its weaknesses and should make changes accordingly to deal with the competitive factors.