Sephora signs deal with Arvind to manage portfolio in Delhi

By Michelle Yeomans

- Last updated on GMT

Sephora signs deal with Arvind to manage portfolio in Delhi

Related tags Retailing

Indian textiles firm, Arvind is moving into the beauty sector after signing a deal to manage three of global cosmetics retailer, Sephora's stores in Delhi and one in Pune. 

Arvind is reported to have a strong retail presence in India, and will work with Sephora to make premium beauty more accessible to the country's consumers.

The deal will see Arvind take on the responsibility of expanding the geographical reach of the retailer by focusing on urban centers through the key beauty categories of makeup, fragrances, skin care and hair care.

According to Olivier Schaeffer, Sephora Global COO; Arvind has demonstrated "excellent skills​" in building brands in India and who have been very supportive of our expansion plans.

"On top of the physical stores, we are thrilled to announce this partnership will also extend to the internet sphere which growth has been and is expected to be, phenomenal in India,”​ adds Schaeffer.

Speaking on the plan of action; Arvind managing director, J. Suresh says that India's personal care market stands at Rs. 15,000 crs of which, the premium sector accounts for Rs. 2500 crs and is growing at a CAGR of 25%.

"Given this large opportunity, we expect Sephora to reach a turnover of Rs. 500 crs in the next 4 years with 40 – 45 stores​," Suresh forecasts.

Sephora's investment in Asia

E-commerce in China is a valuable investment for international players - if done in the right way. Recognising the challenges in this arena, beauty retailer Sephora recently turned to e-mall, 'Jingding' to extend its reach in China.

While the international beauty retailer has a Chinese version of its own website, this deal will help the platform to reach more customers, as is one of the leaders in e-commerce.

According to the president of Sephora Asia, Anne Veronique Bruel, this particular partnership is a global first for the retailer and will offer Jingding shoppers exclusive and new cosmetics. 

With over 1,200 items from more than 70 brands, the CEO of Shen Haoyu says that Sephora's store will be the largest on its' platform.

On hearing the news of the deal, analysts like 'MarketWatch' reckon things haven't been easy for the retailer since setting up its website in 2013, as its struggling to compete with other cosmetic retailers like Jumei.

Related topics Business & Financial South Asia

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