Bindu D. Menon
New Delhi, June 25 Modi-Revlon is widening its product basket by introducing an array of professional beauty products targeted at the beauty salons. The company is also upping its ante to have a larger presence in the new format stores which it hopes will be a major revenue churner in the future.
“In the next couple of years, we hope at least 70 per cent of our sales will come from modern retail outlets. We are scaling up our presence in these outlets as it generates considerable impulse buys,” Mr Deepak Bhandari, Director- Marketing, Modi-Revlon, told Business Line. Modi-Revlon is a joint venture between the Modi Group and Revlon of the US.
Speaking on the professional beauty range, Mr Bhandari said the Revlon Professional range will be a key growth driver for the company. “The professional beauty products market in India is estimated to be close to Rs 350 crore and is witnessing a 20 per cent growth annually. We hope to capture at least 10 per cent market share in the first year of launch,” he said.
The range comprises 44 stock keeping units, including hair colour creams, conditioners and nail enamels, which will be sold directly to salons.
The new range would be marketed in Sec A and B cities with a slew of below the line marketing initiatives. The products will be manufactured at the company’s plant in Guwahati.
Asked if the Rs 150-crore company is mulling to increase prices on the back of rising input costs, Mr Bhandari said the company makes 10 per cent price revision every year.
The company said it may also look to enter the mass market category. “Our R&D in Modinagar is working extensively to create India specific products. We are working towards a brand for the mass market category to spur volume,” he added.