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Buyers Cease has launched its first standalone magnificence retailer SS Magnificence in Malad, Mumbai. By March, the retail chain, owned by Ok Raheja Corp, plans to launch two extra shops, one every in Mumbai and Ludhiana, and 12 extra in cities like Delhi and Kolkata within the subsequent monetary yr. All of its 80 shops within the nation have a devoted magnificence part. Moreover, it additionally operates standalone shops of MAC Cosmetics, Estee Lauder, Clinique, Bobbi Brown, Jo Malone, and Too Confronted within the nation.
The sweetness and private care market in India was valued at round $15 billion in 2021, and is more likely to develop at a CAGR of 8% over the subsequent 5 years, in accordance with Euromonitor.
Development mode
Unfold throughout 2,000 sq ft, the SS Magnificence retailer in Malad has skilled magnificence advisors to help and supply strategies on make-up and sweetness merchandise. Focussed on the premium magnificence house, the shop homes over 200 magnificence manufacturers, together with Kora, Caudalie, Jeffree Star Cosmetics, Bobbi Brown, and Parfums de Marly. The corporate plans to launch a devoted web site and app for SS Magnificence within the subsequent few months.
“At the moment, the magnificence section contributes round 17% of our whole gross sales. We’re observing development on this section throughout all our channels; therefore, we consider that SS Magnificence shops will give us the chance to develop sooner,” says Venu Nair, MD and CEO, Buyers Cease.
Buyers Cease launched its non-public label within the magnificence house, known as Arcelia, final yr, which contains a shower and physique care vary, and fragrances and deodorants. The model plans so as to add nail paints this month, adopted by lipsticks and different make-up merchandise.
The corporate additionally launched two non-public label manufacturers within the attire section — Insense and in.fuse. Insense is a girls’s sleepwear and loungewear model, whereas in.fuse is an online-only model that caters to menswear, womenswear and kidswear. “Non-public labels at the moment contribute round 14% of our total gross sales. We intend to develop this to 20-25% within the subsequent two years. Aside from our shops and web site, non-public label manufacturers are additionally accessible on Amazon,” Nair says.
Non-public labels give retailers higher management over pricing and stock. “They provide margins as excessive as 50%. They bridge the value hole between what the shopper is prepared to pay and what the large manufacturers are charging,” says Sanjesh Thakur, associate, Deloitte India.
Additional, the retail chain goals to consolidate its offline presence by launching 12 shops by FY23. The web channel, Nair says, has grown previously yr, and “at the moment contributes 6% of whole gross sales, in comparison with 1.5% in FY21”.
Market potential
Analysts say, one compelling purpose to enterprise into this enterprise is the related greater margins in comparison with these within the attire class. “The gross margin on this section is round 30%; there may be additionally a recurring demand noticed on this class, which makes it a lovely section to spend money on,” explains Thakur.
However gamers like Buyers Cease could discover it difficult to compete with the reductions supplied by on-line marketplaces similar to Amazon, and the mass, premium, and personal label choices of specialist retailers like Nykaa and Purplle. Direct-to-consumer manufacturers like SUGAR Cosmetics and MyGlamm, too, have gained traction over time. “Attain can be one other problem as on-line gamers have higher functionality when it comes to catering to prospects in tier II and III cities, in comparison with offline gamers with restricted shops,” says Neelesh Hundekari, associate, Kearney.
To face out, analysts say, retail chains may make use of AR in shops for trials, and personalisation. Crafting bespoke merchandise by way of digital consultations primarily based on pores and skin textures and life, and providing magnificence regimens as an alternative of standalone merchandise may draw prospects.
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