[Federal Register Volume 75, Number 79 (Monday, April 26, 2010)]
[Notices]
[Pages 21595-21597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-9534]
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DEPARTMENT OF COMMERCE
International Trade Administration
Beauty and Cosmetics Trade Mission to India
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
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Mission Description
The United States Department of Commerce, International Trade
Administration, U.S. and Foreign Commercial Service (CS) is organizing
a Beauty and Cosmetics Trade Mission to India (New Delhi, Mumbai and
Bangalore), November 15-19, 2010. Led by a senior Department of
Commerce official, the mission will assist U.S. beauty and cosmetics
companies to identify prospective representatives, distributors,
partners, and end-users in the vibrant Indian market. The cosmetics/
beauty industry is one of the booming retail sectors in India with very
strong potential for new-to-market (NTM) U.S. companies. U.S products
are perceived to be very high quality in India and are in high demand.
Mission participants will have a first-hand opportunity to assess
market potential in India and to meet key decision makers. Trade
mission participants will have customized meeting schedules to meet
with potential partners, professional end-users, major retailers and
key government and regulatory officials.
Commercial Setting
The emergence of a young urban elite population with increasing
disposable income in cities, including an increase in the number of
working women increase looking for lifestyle-oriented and luxury
products is the main driver of demand for imported cosmetics products.
Indian consumers tend to look towards international brands as lifestyle
enhancement products.
The total size of the Indian retail beauty and cosmetics market is
currently estimated at $950 million. The overall beauty and wellness
market, which includes beauty services, is $2.68 billion. The cosmetics
market in India is growing at 15-20% annually, twice as fast as that of
the United States and European market. Premium global brands are
gaining sales as Indian consumers gain exposure to the global media and
move from functional items to advanced and specialized cosmetic
products. With the beauty service industry growing rapidly in India,
the spa segment in India is also attracting a lot of attention. The spa
industry over the last five years has shown tremendous growth, not only
in the number of spas, but also in the diversity of spas and products
available. The spa and body treatment segment is estimated to be
approximately $772 million over the next five to eight years.
Now is the time for U.S. beauty and cosmetics firms to enter the
Indian market. European competitors have already been very aggressive.
U.S. products viewed as high quality but awareness levels are low for
smaller U.S. brands. Even with a good growth rate, penetration of
cosmetic and toiletries is very low in India. With a 15-20% growth rate
in this sector, this translates into tremendous potential for U.S.
companies.
Recruitment efforts for the trade mission will focus on the dynamic
growth opportunity areas such as color cosmetics, fragrances (fragrance
is the most popular import purchase), specialized skin care and hair
care products, professional salon products, nail care products, and spa
equipment and products.
Additionally, the trade mission will allow the participating U.S.
companies to learn about potential regulatory changes that would
require all foreign cosmetics companies to register their products
before being allowed to sell (Note: Indian companies are already
required to register; so far foreign companies have been exempted from
this requirement). If this proposed change to the Indian Drugs and
Cosmetics Act of 1940 passes, foreign companies importing products
would receive certificates with three years' validity, whereas
companies manufacturing in India would have certificates valid for five
years. Moreover, the trade mission participants will learn about
India's labeling requirements. While not especially onerous, the
labeling requirements must be adhered to in order for U.S. companies to
sell in India.
Mission Goals
The goals of the Beauty and Cosmetics Trade Mission to India are
to: (1) Introduce U.S. mission participants to the vibrant Indian
market, especially in the three large metropolitan cities of Mumbai,
New Delhi, and Bangalore, to assess business opportunities; (2)
establish valuable contacts with prospective agents, distributors and
retailers; and (3) meet with Government regulators to understand the
policy and regulatory framework and to explain American industry
experience and best practices.
Mission Scenario
Participants will visit three of the India's key metropolitan
centers. The mission will have access to major countrywide markets, as
well as Indian government officials and U.S. Embassy staff for
regulatory and business climate briefings.
New Delhi--the capital city of India where participants can meet
with government officials to learn about policies and regulations,
particularly current labeling requirements and potential registration
issues, which would impact all U.S. beauty/cosmetics companies.
Mumbai--the business and financial capital of India were there will
be meetings with appropriate customs and government officials, industry
associations, networking reception and site visits.
Bangalore--a booming city with an organized retail market and the
first destination of many global consumer brands, especially luxury
labels.
During the trade mission participants will receive: (A) Briefings
on beauty and cosmetic markets in India; (B) one-on-
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one meetings tailored to each firm's interests; (C) introductions to
potential agents/distributors, facility administrators, and purchasing
managers through group events; (D) site visits if applicable; and (E)
meetings with local business representatives and government officials,
as appropriate.
Proposed Time Table *
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Day of week Date Activity
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Sunday........................ November 14, New Arrive in New Delhi.
Delhi. Informal no-host
dinner and greeting
by U.S. Commercial
Service staff.
Monday........................ Nov. 15, New Mission meetings
Delhi. officially start.
Morning--Embassy
Briefing.
Afternoon--One-on-one
meetings.
Networking reception
hosted by the
Minister Consular
for Commercial
Affairs.
Tuesday....................... Nov. 16, New On regulations--
Delhi/Mumbai. Meetings with GOI/
consultant.
One-on-one meetings.
Networking lunch.
Site visit to a Spa/
Retail outlet.
Late evening depart
for Mumbai.
Wednesday..................... Nov. 17, Mumbai.. Breakfast briefing.
One-on-one meeting.
Network lunch hosted
by Chamber of
Commerce/Industry
Association.
One-on-one meetings.
Networking reception
hosted by the Consul
General.
Thursday...................... Nov. 18, Mumbai/ Mall/Retail tour/
Bangalore. Trade fair visit.
Evening depart for
Bangalore.
Friday........................ Nov. 19, One-on-one meetings
Bangalore. followed by.
Networking lunch.
Afternoon--Site visit
to a Mall/Retail
Tour/Spa, or
U.S. Cosmetics Trade
Day in association
with a major local
retailer (TBD).
Trade Mission
Officially Ends.
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* Note: The final schedule and potential site visits will depend on the
availability of local government and business officials, specific
goals of mission participants, and air travel schedules.
Participation Requirements
All persons interested in participating in the beauty and cosmetics
trade mission to India must complete and submit an application package
for consideration by the Department of Commerce. All applicants will be
evaluated on their ability to meet certain conditions and best satisfy
the selection criteria as outlined below. A minimum of 10 and a maximum
of 20 companies will be selected to participate in the mission from the
applicant pool. U.S. companies already doing business in India as well
as U.S. companies seeking to enter the region for the first time are
encouraged to apply.
Fees and Expenses
After a company has been selected to participate on the mission, a
payment to the Department of Commerce in the form of a participation
fee is required. The participation fee will be $4,600 for large firms
and $3,900 for a small or medium-sized enterprise (SME),* which
includes one principal representative. The fee for each additional firm
representative (large firm or SME) is $750. Expenses for lodging, some
meals, incidentals, and travel will be the responsibility of each
mission participant.
Conditions for Participation
An applicant must submit a completed and signed mission
application and supplemental application materials, including adequate
information on the company's products and/or services, primary market
objectives, and goals for participation. If the U.S. Department of
Commerce receives an incomplete application, the Department may reject
the application, request additional information, or take the lack of
information into account when evaluating the applications.
Each applicant must also certify that the products and
services it seeks to export through the mission are either produced in
the United States, or, if not, marketed under the name of a U.S. firm
and have at least 51 percent U.S. content of the value of the finished
product or service.
Selection Criteria for Participation
Selection will be based on the following criteria:
Consistency of the applicant's goals and objectives with
the stated scope of the trade mission.
The suitability of the company's products or services to
the Indian cosmetics and beauty market.
Applicant's potential for business in India, including
likelihood of exports resulting from the mission.
Referrals from political organizations and any documents containing
references to partisan political activities (including political
contributions) will be removed from an applicant's submission and not
considered during the selection process.
Timeframe for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade mission calendar (http://www.ita.doc.gov/doctm/tmcal.html) and other Internet web sites, press releases to general and
trade media, direct mail, notices by industry trade associations and
other multiplier groups, and publicity at industry meetings, symposia,
conferences, and trade shows. CS India will work in conjunction with
the U.S. Export Assistance Centers, which will serve as a key
facilitator in establishing strong commercial ties to the U.S.
companies in the targeted sectors nationwide.
Recruitment for the mission will begin immediately and conclude no
later than Friday September 10, 2010. The U.S. Department of Commerce
will review all applications immediately after the deadline. We will
inform applicants of selection decisions as soon
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as possible after September 10, 2010. Applications received after the
deadline will be considered only if space and scheduling constraints
permit.
Contacts
U.S.--Ontario, CA U.S. Export Assistance Center:
Tony Michalski, Senior International Trade Specialist, Ontario, CA,
Phone: 909-466-4137, E-mail: [email protected].
U.S. Commercial Service in India:
Aliasgar.Motiwala, Commercial Specialist, Mumbai, Tel: (91-22) 2265
2511, E-mail: [email protected].
Manjushree Phookan, Commercial Specialist, Bangalore, Tel: (91-80) 2220
6404, E-Mail: [email protected].
Srimoti Mukherji, Commercial Specialist, New Delhi, Tel: (91-11) 2347
2226, E-Mail: [email protected].
* An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing schedule reflects the Commercial Service's user fee
schedule that became effective May 1, 2008 (for additional
information see http://www.export.gov/newsletter/march2008/initiatives.html).
Lisa Huot,
Global Trade Programs, Commercial Service Trade Missions Program.
[FR Doc. 2010-9534 Filed 4-23-10; 8:45 am]
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