Cosmetic Trail

Recently, Modicare launched their new premium range Essensual20, where starlet Karisma Kapoor, unveiled quality and trendy cosmetics. On the sidelines of the event, Aadeetya Sriram, spoke to KK Modi, Chairman, Modicare Ltd, to know about this exclusive range and their future plans.

Aadeetya Sriram(AS):  What is the USP of the new product range?

KK: The biggest difference that we (Modicare) make is by way of selling from home to home, person to person; this way, we are connecting directly with people. The direct product knowledge that people gain through consultants give the customers the assurance that he is looking for. Keeping this in mind, the products we are providing are skin treatment solutions( for both day and night time) which is quite essential to the current mass, because they do realize the importance of keeping themselves healthy and our aim is to provide them with products that will assure them a healthy lifestyle.

AS: What sort of growth are you experiencing through direct retailing?

KK: At the moment, the growth is around 35%-37% compound annual growth rate(CAGR), but as we are planning to expand not only in the same area but also in new areas, so we are expecting to reach a growth of around 50% year over year. We also plan to target the metro cities, which will accelerate our growth to a great extent.

AS: As the brand ambassador for the product range, what role do you see Karisma Kapur play, so as to enhance the image of the product?

KK: As most of our consultants are house-wives, they have found Karisma to be unique, because she is married, she has kids. And also the fact that she looks good for her age, hence most of these house-wives(consultants) look up to her as a role-model. Karisma instills a belief in their minds that even after you are married & have kids, you can still look beautiful & young. Keeping this in mind, Modicare plans to start contests among our consultants which will make them realise that their effort to look good are positive & worth the effort.

AS: What sort of price range is set for these products?

KK: These products are segmented under the premium range market. So they will cost Rs 1200 to Rs 1500 for small bottle whereas other products will be available from Rs 300 to Rs 500.

AS: What are your expansion plans for the future?

KK:  As we follow direct retail process, we are indirectly in touch with the consultants, so we keep ourselves up-to date with the changes that are required to be implemented. One of those changes is through health & wellness products. So there is a need for products that will keep your skin clean, long lasting, shiny & good for health. The life span is changing so we are looking into anti-aging products for older people, which can be marketed through direct-selling which convinces the consumers about the product to greater-effect.

AS: What is the process of testing the product before it is available in the market?

KK: We have a large base of consultants who we provide sample products. After analysing the feasibility, we provide them with the products. They revert back with their opinions and we develop another version of the sample, and the version that gets accepted is made available in the market.

AS: How did you collaborate with Cosmax, the leading cosmetic brand in Korea?

KK: Cosmax is looking to expand in India, & this gave us an opportunity to know about the adventure they are planning to undertake. So we held a screening of the company & they were adjudged as the leading brand in Korea for cosmetic products. Secondly, they were willing to invest in a company for the initial years without looking for the cost of development, that spoke volumes of the faith the company had in Modicare . We hope this collaboration will last for at least another 10-20 years.    

AS: What is the target group you are focusing?

KK: We aim to target the housewives because they are the ones who feel left out and realize the need to empower them with their personality & appearance.

AS: Do these consultants go through any sort of training?

KK: Our consultants are primarily youth and the network of consultants comes to about 120,000 throughout the country. They are given training for a year where they understand the products they get involved with, so as to assure that, they can inform the customers about the products to its optimum.