Beauty retail Aug, 06 2012

Wealthy beauty and wellness biz opportunity

By Namita Bhagat
Wealthy beauty and wellness biz opportunity

With global presence in nearly 64 countries, Israel based Premier Cosmetics is known for its high-quality Dead Sea cosmetic products. In an interaction, Oren Shani CEO, Premier Wholesale Cosmetics shares brand’s India expansion plans.

Namita Bhagat (NB): Brief us on the inception and concept of ‘Premier Dead Sea’. Describe its USP?

Oren Shani (OS): The Dead Sea Premier Cosmetics Laboratories was established in 1990 in Israel. The Premier Cosmetics is the largest manufacturer of high-quality Dead Sea cosmetic products. Our line consists of over 150 items, which completes a full unique range of high quality skin-care products, hair and body care. Our products are exported to different 64 countries, with a global turner of more than USD 500 M. Our USP is an active approach. We invite people to use our products in our point of sales i.e. POS. We are so confident on the quality and effectiveness of products that we follow the slogan, ‘Let the customer try the product, the product will do the rest.’

NB: Could you share the brand's current presence in India?

OS: Currently, there are points of sale in Bangalore. We will soon open outlets in Pune, Chennai followed by Mumbai, Delhi and Hyderabad by the end of this year.

NB: What is the brand’s potential in the Indian market?

OS: We believe the Indian market will love our concept for several reasons. The concept of Premier Dead Sea mineral products is fairly new to the Indian market. The customers would appreciate this concept, as it is more of a wellness product that contributes to preventing and reducing skin damage rather than camouflaging it. Since the products are natural, the skin is able to absorb them better and retain the minerals for a longer time thereby ensuring better results. As a new brand, customers would want to know who and what is behind the brand and company. We use below the line (BTL) marketing to reach out to our target audience by allowing them to fully experience the product under the guidance of an expert from Israel. This often yields better results, as we are able to educate the clients on how to use the products correctly and explain the benefits in detail. People like to see results and feel the product before they buy and customers are aware of value for money.

NB: What business models will the brand follow in India? What Indian cities will the brand target to set up stores?

OS: We work on franchising model, with support and guidance of international trainers. We are targeting all major cities to extend our presence further in the country.

NB: What is the approximate requirement in terms of capital and area to partner with you as a franchisee? What kind of training and support are given to them?

OS: We are giving few options to the local franchise that include kiosk in a mall, flagship stores, and Salt spa. The level of investment is Rs 15 to 70 lakh. We provide a full training program for the staff and a close business mentoring to the owner.

NB: What customer segment will the brand target?

OS: Our mainly target women in the age group of 30to 50 who understand the importance of care and preservation of body and facial skin, and can afford to buy our products.

NB:  What are the challenges and competition in the market? How will you deal with it?

OS: The main challenge is to educate Indians about the huge benefits of natural Dead Sea products. We do not have many direct competitors in terms of core ingredients used (Dead Sea minerals). But within the beauty industry our competitors are mainly international skin care brands. Our advantages include, natural products, unique selling proposition, permanent international representatives based in India, and our product range which provides a solution from hair to nails.

NB: What are your further expansion plans in India in the coming years? Share your overview of India’s current beauty market scenario?

OS: We are looking fo having 25 stores within five years, and 40 point of sale inside spa, hotels and beauty salon. Cosmetic is one of the booming retail sectors, the cosmetics market increases by 15 to 20 per cent annually, twice as fast as the United States and European market; a rapid growth in skin-care products, and men grooming market. Most skin care international brands are already here, we expect more brands to enter in the next three years.

Related: Now, newu franchise stores

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