Colorbar Cosmetics is planning to expand its business through exclusive retail stores of the brand. The company plans to have four outlets in Delhi, National Capital Region and Mumbai by the end of this year and 10 exclusive outlets by 2011. It would be closing down about 200 out of the 650 shop-in-shop point of sales this year across India. The company will invest its resources in expanding its retail presence instead.
“It is more viable for us to decrease shop-in-shops. It is expensive to provide training to as many people. We have a lot of stress on having beauty advisers at the point of sale,” said Samir Modi, managing director, Colorbar Cosmetics.
Colorbar is planning an investment of Rs 11 crore this year. Going forward, the company plans to grow both organically and inorganically.
The company plans to acquire some foreign as well as Indian brand to expand its presence and portfolio. In addition, the company has added 200 new stock keeping units this year that are available only at exclusive Colorbar outlets.
The company claims a market share of 6 per cent and aims to increase it to 8-10 percent this year. Colorbar sources its products from Italy, France, Germany and Greece. It has its research and development facility in Mumbai.
The company does not plan to have a manufacturing facility in India because of ‘quality issues’. The price range of its products is between Rs 80 and Rs 85. “We are at the lower end of the prestige segment and top-end of the mass. Our pricing has given us a competitive advantage,” Modi said.
Modi said the Indian woman is moving from being conservative and beginning to experiment with their make-up and looks, which gives the company scope to introduce more innovative products.
Source: Financial Chronicle