Shoppers Stop has launched its first standalone magnificence retailer SS Beauty 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. Besides, it additionally operates standalone shops of MAC Cosmetics, Estee Lauder, Clinique, Bobbi Brown, Jo Malone, and Too Faced within the nation.
The magnificence 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, based on Euromonitor.
Growth mode
Spread throughout 2,000 sq ft, the SS Beauty retailer in Malad has educated magnificence advisors to help and provide recommendations 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 firm plans to launch a devoted web site and app for SS Beauty within the subsequent few months.
“Currently, the magnificence section contributes round 17% of our whole gross sales. We are observing development on this section throughout all our channels; therefore, we imagine that SS Beauty shops will give us the chance to develop sooner,” says Venu Nair, MD and CEO, Shoppers Stop.
Shoppers Stop launched its non-public label within the magnificence house, known as Arcelia, final yr, which includes 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 firm 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 a web based-solely model that caters to menswear, womenswear and kidswear. “Private labels at the moment contribute round 14% of our total gross sales. We intend to develop this to twenty-25% within the subsequent two years. Apart from our shops and web site, non-public label manufacturers are additionally out there on Amazon,” Nair says.
Private labels give retailers higher management over pricing and stock. “They provide margins as excessive as 50%. They bridge the value hole between what the client is keen to pay and what the massive manufacturers are charging,” says Sanjesh Thakur, companion, Deloitte India.
Further, the retail chain goals to consolidate its offline presence by launching 12 shops by FY23. The on-line channel, Nair says, has grown up to now yr, and “at the moment contributes 6% of whole gross sales, in comparison with 1.5% in FY21”.
Market potential
Analysts say, one compelling cause to enterprise into this enterprise is the related larger 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 sexy section to spend money on,” explains Thakur.
But gamers like Shoppers Stop might 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-shopper manufacturers like SUGAR Cosmetics and MyGlamm, too, have gained traction over time. “Reach could be one other problem as on-line gamers have higher functionality by way of catering to clients in tier II and III cities, in comparison with offline gamers with restricted shops,” says Neelesh Hundekari, companion, Kearney.
To stand 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 existence, and providing magnificence regimens as a substitute of standalone merchandise may draw clients.
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