Economic Factors

The Indian male grooming sector is expected to grow at a CAGR of about 45%. It is expected to reach
Rs 35,000 crores industry in 2021 from the existing Rs 16,800 crores. This rise is due to the fact that
men are becoming more conscious of their looks, thanks to the advertisements focused on their
grooming.
Economic factors that affect the functioning of Ustraa can be- changes in the inflation rate, the gross
domestic product of India, foreign exchange rate, and the current stage of the economic scale. Let’s
have a look of these issues in broad:

 Current market scenario: Ustraa is facing stiff competition from the market leader Gillette of
P&G and some other small players like The Man Company, Beardo, The Skin Pantry, etc.
Gillette is leading the market, with around 25% of retail share value. While others are
competing in a perfect competition situation.
 Market slowdown: Male grooming products are somewhat considered as luxury products for
the general populous. Slowing down of economy can hamper the sales of high-ended
products.
 Unemployment rate: India has a high unemployment rate, which means that there is a
greater demand for jobs than the supply, which in turn means that people are willing to
work at a lower income. This mismatch would surely lower the costs of Ustraa products.
 Foreign exchange rate: If Ustraa engages in any sort of international trade in the future, then
forex rates will inevitably impact its profitability. It is always beneficial to trade when the
currency of the country is in a stable condition.
 Financial Markets’ Functioning: It will be easier for Ustraa to raise capital in the future if the
financial markets are performing efficiently.

References

1. https://www.deccanchronicle.com/lifestyle/fashion-and-beauty/270319/mens-grooming-is-
booming.html
2. https://retail.economictimes.indiatimes.com/news/health-and-beauty/cosmetics-and-
fragrances/-indian-men-moving-beyond-gillette-and-whatever-spouse-gets-home/61947966