Slowdown in the organised retail business has impacted sales for Modi Revlon even though the mom-and-pop stores are generating good business for the brand.
The company, which has tied up with French company Pierre Fabre Dermo to market and distribute its premium scalp and hair treatment brand Rene Furterer, said it is looking to enter more areas in the professional beauty segment.
“Sales have been slow at organised retail level as retailers are pruning their inventory. However, sales are robust at neighbourhood stores,” said Umesh K Modi, CEO and president, Modi Revlon.
Modi Revlon, 74:26 joint venture between Umesh K Modi Group and Revlon of the US, said the tie-up with the French company would help it carve a niche in the professional beauty business.
“For us, salons will be the endorsements to launch our new hair care range. We will target all top-end salons in India to spread our products. Once we find our feet in the professional business, we will take it to retail.”
The haircare market in India is estimated to be at Rs 200 crore and is witnessing a 20 per cent growth on annualised basis.
Mr Modi said the company would also introduce the professional skincare range soon.
Last year it had launched Revlon Professional range to cater to the requirement of the neighbourhood beauty salons.
Asked if lower commodity prices had improved margins, Mr Modi said, “the impact has been marginal. The rupee devaluation has eroded margins in imported products.”
The company is looking at a turnover of Rs 200 crore with modern retail contributing about 20 per cent. It also plans to double its ‘store in store’ outlets from the current 1,800 in the next three years.
Source: Business Line