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Dec, 02 2015

Beauty brand franchisees get a business makeover at malls

Why should a beauty retail franchisee launch a store at a mall? High footfall, presence of international beauty brands & the larger customer wallet share are the key reasons making all beauty brand franchisees open stores at malls than any other location.

Read on to know that how can a franchisee generate higher revenue at mall.

35 %beauty brand’s presence at malls of the retail space is occupied by cosmetic brands at mumbai's high stret phoenix mall. At Select City Walk mall in Delhi, beauty retail and beauty services are the third largest category, which is present after fashion and F&B. DLF Saket & DLF Promenade has huge number of international & indian cosmetic brands inhabiting 40-45% of the total mall area. Beauty brands also tops the chart after fashion retail & food & beverage in the shopping malls of tier II & III cities due to higher footfalls. According to industry experts, India's retail beauty and cosmetics industry is currently estimated at $950 million and is likely to almost treble to $2.68 billion by 2020.

With the growing demand of branded cosmetics, beauty retail brand franchisees are occupying big spaces in the malls and high streets. Thanks to the influx of more and more number of indigenous and international cosmetic brands. Consumers with rising disposable income and great spending power are ready to shell out any amount to look and stay beautiful, which is why the international brands are penetrating in the malls of tier-I and II cities. Also, more discerning shopper with higher spends on beauty and increased brand loyalty are the reasons behind the increasing number of beauty retail brands at shopping malls.

Few of the major players in the cosmetic brand segment are Lakme, Lotus, Biotique, L'Oreal, Revlon India, Maybelline, Himalaya, Colorbar and Elle 18. However, premium international  brands like Bobbi Brown, Chanel, Clarins, Clinique, Estee Lauder, Kiehl's, Lancome, Loccitane, M.A.C. Inglot, Faces, Sephora, Lush, The Body Shop are also getting amazing response from Indian consumers at malls in Metro cities.

Vijay Shanker, Chief Operating Officer, New U, Dabur India Ltd. Says: “Whether Indian or international, malls are serving as the launchpads to all cosmetic brands. The high footfall of consumers from all walks of life and all sorts of business format available, under one roof are the main reasons behind why malls have great number of beauty retail brands.”

As per Rajendra Kalkar, President (West), The Phoenix Mills Ltd.:”Cosmetics is the third largest category after fashion and F&B that occupies maximum spaces in the malls. Franchising has played a significant role in aiding to the growth of the retail industry. High Street Phoenix has more than 500 brands under one roof in the mixed-use development model and we have taken cognizance of the pertinence of the fashion, hospitality and beauty segment, thus ensuring our brand mix is centered around these three."

Another home grown wellness and beauty brand Vert Home & Personal Care is a new entrant in beauty retail arena. The brand has opened its first outlet in Select City Walk Mall in New Delhi and another in Gurgaon. Vert now eyes on expanding its footprints across India via the franchise route preferably over an area of 300-500 sq. ft and invites franchisees with the expenditure power between Rs 15-20 lakh.

Quick facts about beauty retail industry

= The growing demand for natural products and awareness about their benefits among the population is leading to the increasingly shifting towards 'organic' and 'herbal' cosmetics.

= With indigenous brands like Khadi, Fabindia, Patanjali the demand for handcrafted herbal cosmetic products are increasing their foothold in the Indian cosmetics industry.

= Revlon was launched in 1995 and it was the first international colour cosmetic brand to be launched in India during that time.

= The colour cosmetics market is growing at a rapid rate in comparison to other segments.


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