India’s professional sector increasingly competitive as Revlon moves in
Revlon has already made moves to take on L’Oreal at the bottom end of the retail space, launching a new brand of colour cosmetics in March that it has priced 60% cheaper than its existing range.
This latest announcement of its intent to launch a professional range confirms the brand is now looking to rival the beauty giant at the upper end of the scale too.
The company estimates the market for professional products to be Rs 1,200 crore annually.
"We are in the process of launching Revlon's professional products by next year. We will compete with companies such as L'Oreal and will introduce full product range," Umesh Modi, Modi-Revlon chairman and chief executive, told the Press Trust of India.
India’s professional space
L’Oreal has traditionally been considered the pioneer in professional skin care products and treatments in beauty salons across India; yet increasing competition within the segment is keeping the brand on its toes.
Schwarzkopf and Wella Professionals are two other major brands with a strong presence in the professional space, and Revlon’s entry will further divide the market.
L’Oreal recently began an ongoing strategy of acquisitions within the category to keep ahead of the curve.
Cheryl's Cosmeceuticals, created in 1986 by Oscar & Cheryl Pereira and today synonymous with skin care treatments and products across salons in India, became the first acquisition for L'Oréal in India in September last year.
Opportunity for growth
According to Modi, the brand's previous pricing and packaging has been impeding its growth, explaining their expansion into both the lower and top end of the beauty market.
Looking for 30% growth, and the brand reckons that the professional sector offers just that in an otherwise ‘sluggish’ market.
"Market is sluggish and we have to bring in new customers. This kind of growth (30%) is only possible if we tap areas which we did not tap earlier," Modi added.
Revlon recently announced its intent of expansion in the country, see other article.
