Sephora, an omnichannel prestige beauty retailer, has partnered with Reliance Beauty and Personal Care, a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL), to develop and define the future of prestige beauty retail in India.
Acquisition of Sephora India's rights
As part of the partnership, Reliance Beauty & Personal Care has signed a share purchase agreement with Arvind Fashions to buy Arvind Beauty Brands Retail for Rs 99.02 crore.
Through this buyout, Reliance Beauty & Personal Care (a subsidiary of Reliance Retail Ventures) gets rights to LVMH’s Sephora, a global omnichannel beauty retailer. Notably, the company will also take over the current India operations of Sephora's 26 stores across 13 cities from Arvind Fashions Limited.
Expansion of Sephora's presence in the Indian market
The partnership gives RRVL exclusive rights to build and enhance Sephora’s presence in India across channels. Since its first foray into India in 2012, Sephora has leveraged its unique brand and product curation capabilities and strong point of view on beauty and experiential retail to cater to the beauty needs of India’s vast consumer base.
“We are tremendously excited to partner with the largest retail group in India to step- change our business. Rising affluence, increasing urbanisation and the proliferation of social media have driven greater awareness of self-care and beauty, unlocking major opportunities for prestige beauty. It is an opportune time for us to invest in expanding our presence, and bring new, exciting, and exclusive brands to delight our growing community of beauty enthusiasts,” Alia Gogi, Asia President, SEPHORA.
According to Subramaniam, The partnership will help Reliance Retail straddle across the value chain in the beauty and personal care segment. Additionally, It will also boost Reliance Beauty & Personal Care product offerings in the country.
The current landscape of beauty and personal care market
The Indian beauty and personal care market, pegged at $17 billion and set to grow at an 11% CAGR, is still believed to be in its infancy, positioning India as one of the largest untapped consumer markets globally.
"The burgeoning Indian beauty market is being propelled by a new generation of customers with a strong desire to express their individuality, rising aesthetic refinement and a growing number of women in the young workforce of India,” said V Subramaniam, Director, Reliance Retail Ventures Limited.
RRVL, through its subsidiaries and affiliates, operates an integrated omni-channel network of over 18,650 stores and digital commerce platforms across Grocery, Consumer Electronics, Fashion & Lifestyle and Pharma consumption baskets and has partnered with over 3 million merchants through its New Commerce initiative.