Shoppers Stop, known for selling clothes, shoes, accessories, home goods, and beauty products, reported revenues of ₹5,228 crore last fiscal year, up 3% from the previous year. Their beauty segment earned ₹887 crore in FY24, a 10% increase year-on-year, while their beauty distribution arm, Global SS Beauty Brands, added another ₹119 crore.
Expanding Beauty Business
Shoppers Stop doesn’t just sell beauty products in their own stores. They also manage specialty beauty stores in India for big names like M.A.C., Estée Lauder, Bobbi Brown, Clinique, Jo Malone, and Too Faced. Additionally, they run the online beauty store SS Beauty.
Last year, Global SS Beauty Brands partnered with Shiseido Asia Pacific to bring Nars Cosmetics to India and plans to open Giorgio Armani beauty stores soon. They also distribute international cosmetics and perfumes to retailers like Sephora and Nykaa.
Future Growth Plans
“We started two years ago with beauty making up about 15.5% of our business, and we’ve grown that to 17-18%. We aim to reach 25% in the next two to three years,” said Kassim, hinting at more global partnerships. He added, “We are open to discussions with any potential partner and many brands have yet to enter India.”
Kassim expects Global SS Beauty Brands’ business to hit ₹250 crores this fiscal year. “We aim for over ₹250 crore by adding new brands and continuing with the ones we signed last year,” he said.
India’s Growing Beauty Market
Young Indian shoppers are buying more beauty products than ever. India’s beauty and personal care market, which grew four-fold from 2006 to 2022, is projected to grow five-fold over the next 15 years, reaching $90 billion from $19 billion in 2022, according to HSBC Global Research. Subcategories like skin care and makeup could grow 10-fold during this period, HSBC reported.
Competitive Landscape
Big companies like Hindustan Unilever, Reliance, the Tata Group, and Nykaa are all targeting the beauty market. Scale will be crucial for profitability in this sector, the HSBC report added.
“In India, online beauty retailers with both physical and online presence are best positioned to benefit from the e-commerce boom. Smaller brands with strong, unique value propositions may become partners or acquisition targets for larger companies,” the HSBC report said.
L’Oréal expects 100 million new online beauty shoppers in India in the next three to four years. The French company gets a fifth of its sales from online retailing for brands like Maybelline, L’Oréal Paris, and Garnier.
On June 20, Mint reported that e-commerce giants Flipkart and Amazon are expanding their beauty and personal care businesses aggressively. Flipkart aims to double the beauty and personal care category’s gross merchandise value within four to five years, according to a senior official.
Amazon India plans to bring quality beauty products to every corner of India. “Beauty is one of the top categories for attracting new customers and ensuring repeat business. We expect it to drive significant growth on our platform,” said Zeba Khan, director of beauty, luxury beauty, and personal care at Amazon India.
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