Colour cosmetics and personal care brand Revlon India plans to have 100 exclusive outlets by the end of next year and is targetting 20 per cent of its total revenue from this channel.
"The new channel that we entered in the last two years is exclusive stores. It is doing very well for us. In the initial years, we were trying to figure out the financial feasibility model but more or less now it is settled for us.
"We have 27 outlets till date and this year we would like to end with 30-35 stores.... We would like to reach 100 by end of 2017," Revlon India Director (Sales and Marketing) Rajiv Kumar Bobal told PTI.
The cosmetics company expects the exclusive stores to contribute to at least 20 per cent of its sales by next year.
"As of now the contribution is very insignificant because we have just 27 exclusive stores but we would like the exclusive outlets to contribute 20 per cent. It should happen around 2017-end when we have about 100 stores," he said.
Bobal added that the stores would be across formats, including kiosks, and would be a mix of company-owned and franchise-operated outlets.
At present, 25 to 30 per cent of its exclusive stores are company owned and the ratio might change when it opens its 100th store.
The company invests 5-10 per cent of its revenues on marketing activities and has allocated a higher share for digital marketing.
"Digital is something we are really focusing on. Digital percentage is very very high, around 30-40 per cent.
"We don't do television (advertising) but focus on radio and print as a medium which we find more effective. That's why digital takes a higher percentage," he said.
Revlon India currently enjoys a market share of 13-15 per cent in the USD 233-million colour cosmetics market and around 4 per cent in the USD 274-million hair colour market.
Bobal said tier II and III cities are contributing significantly to sales, especially in the personal care segment.
He declined to divulge financial details but said 35 per cent of its sales comes from the personal care segment.
Revlon India operates two manufacturing facilities in Rudrapur and Modinagar that produce some products with good sales volume like Super Lustrous lipstick brand. Bobal said it will make more products in India going forward.
"The way we are growing, we would definitely like to focus more on manufacturing, which gives us good cost advantage," he said.
Revlon was launched in India in 1995, with the formation of Modi-Revlon Pvt Ltd, an alliance between Modi-Mundipharma (a joint venture between Umesh K Modi Group of India and Mundipharma Group of Switzerland) and Revlon of US.
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