Reliance Retail is in advanced discussions to acquire the rights to Sephora, a beauty retailer, in India. This potential move is part of Reliance Retail’s strategy to expand into the beauty and personal care market in India, following its successful dominance in the apparel retail sector. India’s online beauty retail market is projected to grow to ₹2 trillion by 2025.
The transition would involve transferring Sephora’s operations from its current partner, Arvind Fashions Ltd., which currently holds the master franchise rights for Sephora in India.
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Sephora is a chain of beauty product stores originally from France and is currently owned by LVMH Moët Hennessy Louis Vuitton, a top luxury goods retailer in the world. In India, Sephora is operated by Arvind Fashions Ltd., which also manages brands like USPA, Tommy Hilfiger, Flying Machine, Arrow, Calvin Klein, and Sephora.
As per Arvind Fashions Ltd.’s annual report for the fiscal year 2021, Sephora has 24 stores across 12 cities in India. Globally, Sephora is known for offering premium cosmetics and perfumes from brands like Bobbi Brown, Benefit Cosmetics, and Lancome, and it operates in 35 countries with over 2,700 stores.
Reliance Retail, a dominant player in the Indian apparel retail segment, is now setting its sights on the beauty and personal care market. India’s beauty retail market is projected to reach ₹2 trillion by 2025 due to increased internet penetration, a large population of millennials and Gen-Z consumers with growing disposable incomes, as reported by Motilal Oswal Financial Services Limited in 2021.
Reliance Retail is exploring a multi-brand beauty retail concept that includes more mass-market brands, aiming to compete with omni-channel beauty retailer Nykaa.
It’s worth noting that Sephora has gone through several partnerships in India to establish its presence in the beauty and personal care market. Prior to its collaboration with Arvind in 2015, DLF Brands held the rights to Sephora in India, and its operations were managed by Genesis Colours based in New Delhi. The partnership between Sephora and Arvind had some difficulties in 2013.
When asked about Sephora, a spokesperson from Arvind Fashions stated, “As per company policy, we do not comment on market rumors and speculations.”
Reliance Retail declined to comment on inquiries, and an email sent to Sephora globally did not receive a response.
Insiders familiar with the situation mentioned that a transition to a new partner is in progress and expected to be finalized in a couple of months. This move may also indicate Sephora’s effort to better understand and manage the premium beauty market in India.
In addition to these developments, earlier this year, Reliance Retail also secured a long-term franchise agreement with American apparel giant Gap Inc. after Gap terminated its franchise agreement with Arvind Lifestyle Brands in 2021.
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