Sanjay Lalbhai-led Arvind Ltd has recently signed a deal to run the Indian operations of cosmetics and beauty retailer Sephora, owned by French luxury conglomerate Moet Hennessy Louis Vuitton (LVMH).
Sanjay Lalbhai-led Arvind Ltd has recently signed a deal to run the Indian operations of cosmetics and beauty retailer Sephora, owned by French luxury conglomerate Moet Hennessy Louis Vuitton (LVMH). The agreement, which is due for announcement on Friday, will see Arvind bagging both store and e-commerce rights for India.
Arvind Lifestyle Brands will manage Sephora's three stores in Delhi and one in Pune. Arvind plans to add another 40 stores in the next 5 years. TOI first reported on Arvind's talks with Sephora in May this year.
"We clearly want to accelerate our expansion plans in India. This partnership with Arvind is a long-term one for stores and e-commerce," Sephora global chief operating officer (COO) Olivier Schaeffer told TOI. "Sephora has built a network of around 200 stores in China in the past decade. India could be a similarly big market in the long term," he added. Sephora offers cosmetic, skin care, fragrance, bath and body, hair care products across 200 brands, including Calvin Klein, D&G and Ralph Lauren, as well as its namesake brand Sephora Collection. It has 1,700 stores across 31 countries.
Sephora wants to scoop up a bigger share in India's premium cosmetics and beauty market, which is fragmented between department store chains. "Overall, the beauty and personal care market is around Rs 15,000 crore, of which premium market is Rs 2,500 crore and growing at a CAGR of 25%. Given this large opportunity annually, we expect Sephora to reach a turnover of Rs 500 crore in the next 4 years with 40-45 stores," Arvind Lifestyle CEO J Suresh said.
Sephora has had a slow start after entering India four years ago, during which it had partnerships with Genesis Luxury and DLF Brands Ltd. Arvind shares ended 2.3% down at Rs 260 in a falling Mumbai market on Thursday.
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