Financial Daily from THE HINDU group of publications
Friday, Feb 15, 2002
Financial Daily from THE HINDU group of publications Friday, Feb 15, 2002 |
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Marketing
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Retailing Keune plans branded hair-care salons Our Bureau
NEW DELHI, Feb. 14 DUTCH hair-care major Keune, which made its official debut in the domestic market last summer through a marketing arrangement with paint brush company Brushman (India) Ltd, has entered into a profit sharing arrangement with retail chain Lifespring to set up branded salons in India. The company intends to set up 20 company-owned Keune Careline salons in the domestic market within the next one year. According to Mr Kapil Kumar, Managing Director, Brushman India Ltd, the company has initiated talks with a couple of other leading retail chains for similar alliances. An investment of Rs 15 lakh is expected to be pumped in at each salon (excluding real estate costs). While most of the salons are expected to be set up in metros and bigger cities such as Mumbai, Chandigarh, Bangalore and Chennai, the company is also considering tapping SEC-B cities subsequently, according to Mr Kumar. Keune's range of products comprises over 60 shades of hair colour, perms, conditioners, styling gels, hairsprays, shampoos and accessories. Meanwhile, Keune is not considering setting up a manufacturing facility in the domestic market at least for the next five years, Mr Kumar said. To compete in the domestic market against brands such as L'Oreal and Igora, Keune has priced its products about 25 per cent lower than competition. Across the 50 countries that Keune has a presence in, its products are sold predominantly through salons. However, in the domestic market, Keune products are being sold both through the retail channel as well as through the salons. While direct application products such as conditioners, anti-dandruff lotions and medicated shampoos are being sold through the retail channel, all other products are being marketed through beauty salons.
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