Revlon plans to strengthen presence in India in 2017

By Natasha Spencer

- Last updated on GMT

Revlon to open new stores in India

Related tags Colour cosmetics Marketing Revlon

International colour cosmetics brand, Revlon, has plans to launch a significant number of exclusive stores throughout India next year, reports The Economic Times.

Revlon currently has 27 outlets in India, after it became the first international cosmetics company to be launched in India in 1995. However, following its introduction into the Indian market as the first global make up company, it has been slow to progress and develop its brand.

As the company now concentrates on upping the popularity and presence of its exclusive stores and with marketing spend through digital channels reportedly amounting to 5-10% of total revenues, it hopes to reach the 100 store milestone by the end of 2017.   

Market timing

Market research company, Trefis, part of Nasdaq Stock Market, highlighted the growth potential for Revlon in India in a recent report as the colour cosmetics and personal care giant has announced its plans to open 80 exclusive outlets in the country.

Currently estimated at $10 bn (€9.33 bn), the Indian cosmetics market is expected to grow at a CAGR (compounded annual growth rate) of 10%, totalling $17 bn (€15.86 bn) by 2020.

At present, Revlon operates a 20-25% market share in the colour cosmetics sector and hopes that the timing of its latest expansion into the Indian marketplace will complement its growth and reflect its previous success in the APAC country.  

Previously, Revlon has focused its product development, launches and marketing efforts in Western markets, as 50% of its revenue is generated from the US. However, as the US has slower growth rates and with strong growth patterns predicted in leading APAC nations such as India and China, Revlon is placing its attention on these emerging markets.

Trefis has predicted Revlon’s market share in the global make up industry to rise considerably from 2.8% in 2016 to nearly 4.2% by the end of the forecast period as the nation is set to witness significant growth in the colour cosmetics field by 2020, with anticipated predictions of over 20% growth.

Nicholas Micallef is a beauty and personal care analyst at Euromonitor International discusses the relevance of Revlon’s brand overhaul in 2014. Driving this transformation was the ‘Love is on’ marketing campaign, which sought to create an emotional connection with its consumers. The company continues to focus on strong advertising to appeal to growth markets such as India.

Diversifying into hair care

To date, 70% of the brand’s sales have been from colour cosmetics purchases, but Revlon continues to launch mass-market product lines including shampoo ranges to appeal to consumer interest in Western-style hair care regimes, Trefis reported.

Micallef stated that key trends in India relevant for Revlon’s growth are hair colourants and natural products, which are both in high demand.  

Hair colourants are expected to gain “nearly $300 mn” (€279.6 mn) in India over 2014-2019 which “accounts for a third of  forecast absolute growth in total hair care”, he stated.

He also went on to say that the company will be focusing on fewer successful innovations that create increased efficiency and strengthen distribution channels.

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