Companies

Colorbar Cosmetics aims to become a ₹1,000-cr brand

Meenakshi Verma Ambwani New Delhi | Updated on January 17, 2018 Published on August 15, 2016

colourbar-samirModi

Keen to offer global formulations at affordable prices

Home-grown brand Colorbar Cosmetics is aiming to become a ₹1,000-crore brand in the next three-four years.

The company is also brewing global plans with focus on regions such as CIS markets, West Asia and Africa in the long-term.

Samir Modi, Founder and MD, said: “We aim to make Colorbar a ₹1,000-crore brand in the next 3-4 years. We are growing at 60 per cent year-on-year, which is faster than the market. We believe our differentiator is offering international formulations at affordable prices,” he added.

The brands’ current retail sales value stands at about ₹330 crore.

The company’s products are available across over 1,000 stores and for now, the company wants to keep it at that level. It had earlier presence in 2,000 outlets, but the company scaled it back to solve the problems of fragmented distribution.

Modi said the company is focusing on offering a consistent experience through its company-owned stores which have beauty advisors to guide consumers with their purchases.

Modern retail channel

The cosmetics segment is highly competitive with national as well as aggressive foray by international brands and a large chunk of the market is still non-branded.

“In the past two years, we have also started tapping into the modern retail channel aggressively through shop-n-shops which I believe will be a strong pillar of growth,” he added.

The company has about 300 shop-n-shops across chains such as Shoppers Stop and Lifestyle.

“We are also working on our online strategy and investing in technology. Several brands worldwide have been built completely online. So we are aiming to get 10-20 per cent of our sales through the online channel in the next few years. We hope to launch our own app before the end of this year,” he said.

New markets

For now, the company is selling limited inventory on e-commerce platforms due to challenges of discounts and predatory pricing.

Meanwhile, the company also wants to have a strong global presence in the next five years.

“We are already testing markets like Abu Dhabi and Dubai. We want to have a global presence in the long term. I see good opportunities in markets such as CIS, Middle East and Africa initially,” Modi added.

Modi, who also runs the convenience store-chain Twenty Four Seven, is in the process of revamping the retail business.

The company currently runs 49 stores across Delhi-NCR and Chandigarh.

“We are in transition and working on a new look and branding for Twenty Four Seven , which we will launch by the end of this year. We are looking to expand through the franchisee model,” he added.



Published on August 15, 2016
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