Revlon, the renowned beauty and cosmetics brand, is aiming to achieve a business expansion by doubling its current revenue to INR 400 crore in the ongoing fiscal year. Operating in India through its local partner, Modi-Mundipharma Beauty Products, the company is set to enhance its offline network.
According to a senior company official, Revlon plans to boost its presence by increasing the number of stores from the current 300 to 600. Additionally, the company aims to quadruple its reach, expanding from 1,000 departmental stores to an impressive 4,000 stores. This strategic move is part of Revlon’s commitment to further establish its position in the Indian market.
Moreover, as part of its initiative to broaden its product range for the Indian market, Revlon is contemplating the introduction of perfumes under its brand. This expansion comes in response to the anticipated significant growth in the beauty and cosmetics sector, driven by the millennial generation.
Similar to many beauty brands, Revlon experienced success during the COVID-19 pandemic. However, like its counterparts, the brand has made a remarkable comeback and is currently enjoying a sales “boom” during this festive season, earning a “Diwali blockbuster” in terms of sales.
When asked about expansion Meghna Modi said, “We have around 300 outlets and planning to go around 600 outlets and increase presence in 1,000 department stores to 4,000 department stores.”
Regarding the timeline for this, Modi said, “It will be in the next 2-3 years. We will also double our business next year.”
Revlon achieved a turnover of approximately INR 200 crore for the fiscal year ending on March 31, 2023.
At present, 25 percent of Revlon’s sales in India are generated through online channels, while the remaining 75 percent come from offline sources such as the brand’s own stores and departmental stores managed by prominent retailers.
The company is strengthening its footprint on social media platforms, including Instagram, as mentioned by Modi, who returned to spearhead the Revlon business a few weeks ago after a two-decade hiatus.
Revlon operates within the luxury segment, contending with global brands like MAC Cosmetics and Estee Lauder. Additionally, it faces competition from domestic brands such as Lakme, L’Oreal’s Maybelline, and numerous emerging online or direct-to-consumer (D2C) rivals like Nykaa, Sugar, MyGlamm, and others.
As per a collaborative report from Redseer Strategy Consultant and Peak XV (formerly Sequoia Capital India & Southeast Asia), the Indian beauty and personal care market is projected to reach USD 30 billion by 2027, constituting approximately 5 percent of the global market.
The Indian Beauty and Personal Care (BPC) market, valued at approximately USD 19 billion in 2022, exhibits a relatively low per capita spend in the category. However, the report suggests that as the country continues to prosper, significant growth potential in this sector will emerge strongly.
In the midst of heightened competition in the beauty and cosmetic sector, Revlon is placing its confidence in the quality of its products.
“Whenever we do a study, consumers love our products,” she said, adding, “Our promise is long way and long care.”
Additionally, Revlon aims to capture the attention of aspirational consumers in tier II cities by offering affordable entry price points, starting from INR 399 onwards. This positions the brand in competition with Maybelline from L’Oreal and Lakme from Hindustan Unilever Limited (HUL).
Nevertheless, Modi also emphasized the necessity for enhancing visibility and merchandising in tier II cities.
Modi-Mundipharma Beauty Products, formerly recognized as Modi-Revlon and affiliated with the Umesh Modi Group, launched Revlon in India in 1995. The company specializes in the sale of color cosmetics, fragrances, and hair care products.
