French beauty and cosmetics retailer Sephora is betting big on the rising demand for premium products in India.

Sephora India, which is a partnership between Sephora, owned by LVMH Moet Hennessy Louis Vuitton and Arvind Ltd, operates through 13 company-owned stores across metros. It is looking to add 10-12 more stores in the next 15 months to tap the growing market.

The country’s beauty cosmetics and grooming market, which is estimated at $8 billion (approximately ₹51,200 crore) is growing at a compounded annual growth rate of 18 per cent. The premium segment, which accounts for nearly one-fourth of the market ($2 billion), has been growing faster at around 28 per cent. The premium range typically comprises products priced upwards of ₹1,000.

From mass to premium

According to Vivek Bali, Chief Operating Officer, Sephora India, an increasingly large number of customers are graduating from the value and mass segment to premium cosmetics and grooming products.

“If the overall market is growing at 18 per cent, the premium end is growing faster at around 28 per cent,” he told BusinessLine .

The increase in number of women joining workforce, rise in purchasing power and the aspiration to look glamorous, are pegged as reasons driving growth in the segment, he said.

According to an Assocham– joint study report, India’s beauty cosmetics and grooming market is expected to touch $35 billion by 2035.

The men’s grooming market, which has seen a growth of over 42 per cent in the last five years, is increasing faster than the growth rate of the total personal care and beauty industry in the country.

Business mix

Sephora India expects to achieve ₹180 crore turnover by the end of this fiscal.

According to Bali, nearly 54 per cent of its business comes from make-up products, which includes face, eye, lip, cheek, nail and accessories. Close to 42 per cent comes from skincare and fragrances and the remaining from bath and body range, men’s grooming and haircare.

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