[Federal Register Volume 75, Number 114 (Tuesday, June 15, 2010)]
[Notices]
[Pages 33763-33765]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14288]


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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 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

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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-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 Mission Timetable
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             Day of week                         Date                               Activity
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Sunday...............................  November 14, New Delhi.  Arrive in New Delhi. Informal no-host dinner and
                                                                 greeting by U.S. Commercial Service staff.
Monday...............................  Nov. 15, New Delhi.....  Mission meetings officially start. Morning--
                                                                 Embassy Briefing; Afternoon--One-on-one
                                                                 meetings; Networking reception hosted by the
                                                                 Minister Consular for Commercial Affairs.
Tuesday..............................  Nov. 16, New Delhi/      On regulations--Meetings with GOI/consultant;
                                        Mumbai.                  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/Trade fair visit. Evening
                                        Bangalore.               depart for Bangalore.
Friday...............................  Nov. 19, Bangalore.....  One-on-one meetings 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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    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 \1\), 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.
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    \1\ 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).
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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 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].

Natalia Susak,
Global Trade Programs, Commercial Service Trade Missions Program.
[FR Doc. 2010-14288 Filed 6-14-10; 8:45 am]
BILLING CODE 3510-FP-P