Sephora, which made its first foray into India in 2012, today counts 26 stores across 13 cities. To boost its operations in a country, which is widely seen as the next growth hot spot for the cosmetics industry, the prestige beauty retailer has tied up a new partnership with Reliance Retail Ventures Limited (RRVL), the largest retailer in India, owned by billionaire Mukesh Ambani.
As part of the partnership with Sephora, Reliance Beauty & Personal Care Limited – a wholly owned subsidiary of RRVL — will take over Sephora’s current India operations from Arvind Fashions Limited, which was Sephora’s partner for the last eight years. The transaction is valued at INR 990.2 million, about EUR 11.1 million.
The buyout gives Reliance Retail Ventures exclusive rights to build and enhance Sephora’s presence in India across all channels.
"Rising affluence, increasing urbanisation and the proliferation of social media have driven greater awareness of self-care and beauty, unlocking major opportunities for prestige beauty. It is an opportune time for us to invest in expanding our presence, and bring new, exciting, and exclusive brands to delight our growing community of beauty enthusiasts," said Alia Gogi, Asia President, Sephora.
Largely untapped market
The Indian beauty and personal care market pegged at USD 17 billion (EUR 15,8 billion) and set to grow at a 11% CAGR [1], is still believed to be in its infancy; positioning India as one of the largest untapped consumer markets globally. According to a recent study by Kearney and Luxe Asia, prestige beauty markets in Southeast Asia and India are poised to enter a decade of double-digit growth, and the market could triple in size. These perspectives have trigger a strong struggle among beauty retailers in India, including Nykaa, Tira, Sephora and Shoppers Stop. The attractiveness of the market also sparkled recent high-profile moves in the country by brands such as Shiseido and Nars.
"The burgeoning Indian beauty market is being propelled by a new generation of customers with a strong desire to express their individuality, rising aesthetic refinement and a growing number of women in the young workforce of India. The Indian consumerism journey is at a tipping point, providing the perfect tail wind to this partnership,” said V Subramaniam, Director, Reliance Retail Ventures Limited.
