French beauty and cosmetics retailer Sephora India, part of luxury conglomerate LVMH Moet Hennessy Louis Vuitton SA, is likely to report a 70% growth in turnover to about Rs 170 crore in FY18. J Suresh, chief executive officer and managing director of Arvind Lifestyle Brands and Retail, told FE, “Sephora is a strong brand and is already profitable. The company witnessed a turnover of around Rs 100 crore in FY17 and is likely to report turnover of around Rs 170 crore in FY18.” However, he declined to share the profit figures.
Sephora is looking to expand its reach from 14 stores in the country at present to 50 stores across 15 cities over the next five years. It intends to open six to eight new stores every year to achieve its target and plans to enter Kolkata and Hyderabad by the end of this fiscal.
According to a Euromonitor International report, increasing demand for colour cosmetics in India has attracted international brands. In June 2016, LASplash Cosmetics, a California-based cosmetics brand, entered the Indian market. Similarly, Italian beauty brand Kiko Milano entered India in September 2016 and South Korean cosmetics brand TheFaceShop marked its entry in October.
The colour cosmetics industry in India has grown at a compounded annual growth rate (CAGR) of 21.3% between 2011 and 2016 in terms of value.
Not surprising that Sephora plans to expands its retail network and is also increasing the size of its stores. The average size of a Sephora store which was used to be between 2,700 sq ft and 2,800 sq ft earlier, has now been increased to about 3,200 sq ft. The company also plans to introduce 14 additional exclusive brands in the country over the next year.
The popular cosmetics retailer Sephora has been in India since 2012, but started expanding its retail presence after the tie-up with Arvind in September 2015. Arvind Lifestyle Brands also retails foreign labels such as Tommy Hilfiger, Nautica, Ed Hardy, GAP, Aeropostale and The Children’s Place in India.