The Story of Lakme

Lakme is an iconic beauty brand that has been at the forefront of the Indian beauty industry for decades. It has an extensive product range including makeup, skincare, and haircare, and promotes Indian beauty and fashion through its association with Lakme fashion week on an international platform.

The brand has a fascinating origin story that dates back several decades and includes the British, an Indian Prime Minister, and an Indo-French entrepreneur. So, let’s travel back to 1950 and try to understand India’s political and economic climate back then.

India had just become independent from 200 years of British rule and was struggling to find its footing as an independent nation. After all, 200 years is a long time to be colonized for. The country had been drained of most of its wealth and had become one of the largest markets for finished goods from the rest of the world. Upper and upper-middle-class women would spend an inordinate amount importing foreign cosmetics from France and Italy.

The then Prime Minister, Jawaharlal Nehru, was extremely concerned about the dwindling foreign exchange reserves and decided there should be a domestic production unit for cosmetics. Though the government of India was ready to extend all possible support to set up the industry, they knew that they were not the men for the job. So, Nehru approached the genius Indo-French entrepreneur Jehangir Ratanji Dadabhoy Tata (JRD Tata) to carry out what is considered one of the first instances of “Made in India” post-independence.

JRD Tata thought a lot about what they should name their brand. He understood that the people were fascinated by foreign-sounding brands because it gave an aura of expertise and naming it something Indian might reduce it to just another local product. Thus, he named the company Lakme, which was the French version of the name of the Hindu Goddess of wealth and beauty, Laxmi. It also coincided with the name of a famous opera by French composer Leo Delibes. It was the perfect combination of Indian traditions and Western modernity.

Lakme started its operations in 1952 at a small premise at Peddar Road in collaboration with two French firms - Robert Piguet and Renoir and was later joined by American cosmetics manufacturer Kolmar. There was no equity participation from these companies so the brand’s “Made in India” nature remained. Though they had entered the market with a range of personal care products for women, by 1960, they expanded operations and product range rapidly. Simone Naval Tata took over as Managing Director in 1961 and cemented Lakme as an iconic brand, literally redefining beauty in the 1960s along the way.

Back then, makeup was considered something for noblewomen, and makeup was only used by women with tainted characters among the masses. Simone started an ad campaign with the familiar face of the supermodel and household name Shyamoli Verma. In the ads, Shyamoli Verma is seen playing Indian musical instruments like the sitar or flute with the tagline - “If color be to beauty what music is to mood, play on.” reiterating the fusion of modernity and Indianness.

Relying on the love for Bollywood beauties, Lakme further signed actresses like Rekha and 1994 Miss World Aishwarya Rai Bachchan as brand ambassadors. Kareena Kapoor, Shraddha Kapoor, Kajol Devgn, Lisa Haydon, and Ananya Pandey have been some recent brand ambassadors.

But of course, running successful ad campaigns is not all it takes to become renowned, especially in the makeup industry. Simone had an inherent passion for beauty and fashion and studied cosmetics on her visits to Paris. She even collected samples and brought them to India for chemists to benchmark. She was very persuasive and had excellent business sense. It was only natural that Simone became the chairperson in 1982.

In the 80s, the government levied a 100% excise duty on cosmetic products which led to a huge reduction in margins, even for domestic ones. Simone approached Manmohan Singh who was the Finance Minister at the time and asked him to reduce it. He asked her to bring signatures of people who felt that such a high excise duty was unfair, and Simone set out to do so. At the next Union Budget Meet, the petition was presented, and the excise duty was reduced.

Unfortunately, this problem persists in the industry, and excise duty is not only charged on manufacture but also selling and promotion. Lakme’s sales quadrupled between 2002 and 2013 but the company argues that the rate of growth is not even a fraction of what it could have been with reduced duties. Simone said "The real boom is lurking just under the surface. But the Government will have to cut back on the excise level if we are to realize it."

Despite these obstacles, Lakme has persisted because of its constant innovations and strong celebrity endorsements. There is a strong network of sales offices, salespersons, dealers, and agents ensuring distribution to every Indian town with a population of 20000 or more. They conduct periodic market surveys and well-thought-out marketing strategies and have recently even branched out into products for men.

Additionally, in 1993, Lakme formed a 50:50 joint venture with Hindustan Unilever and in 1996, sold its brands to it, giving them the added benefit of the vast budget and reach of its parent company. They have an up-to-date research and development laboratory that enables Lakme to constantly create products that meet changing customer preferences. Stringent quality control systems have also been set in place to make sure that each product meets international standards.

Shoppers today are ready to spend more on grooming products and services because of higher disposable incomes and are willing to experiment. Lakme faces tough and dynamic competition from both domestic and international brands like Maybelline New York, L’Oreal Paris, MAC Cosmetics, Colorbar, and Faces Canada. It is keeping pace with the trends with aggressive pricing strategies and adding new products to its portfolio. According to a top HUL executive, the pace of innovation is up nearly three times what it was a few years ago. It often collaborates with renowned makeup artists and fashion designers to create exclusive collections and limited-edition ranges, keeping its offerings fresh and exciting.

Lakme also set up a network of beauty salons in 1980 which offered an extensive range of beauty treatments by qualified personnel. Soon, they also launched a beauty school where students are awarded diplomas upon completion of the 6-month intensive course. Their beauticians also give lectures, makeup demonstrations, and beauty advice while traveling the country.

All of this has paved the way for Lakme to become one of the powerhouses of fashion and beauty in India. They now host the Lakme Fashion Week in partnership with the Fashion Design Council of India (FDCI) which is one of the largest fashion events of the year. Every season has a showcase that lasts 5 days by over 100 designers, brands, and industry stakeholders. Through their leadership and cultural expertise, they have undertaken numerous initiatives to create mainstream awareness about social and environmental issues and have been able to support and spotlight them. It is also a space where collaborations take place between startups, innovators, and retailers to create a conscious fashion ecosystem.

Since its inception in 1952, Lakme has successfully bridged the gap between global beauty trends and the rich cultural heritage of India. With its enduring legacy, Lakme will undoubtedly continue to shape the Indian beauty landscape.