“The new channel that we entered in the last two years is exclusive stores. It is doing very well for us. In the initial years, we were trying to figure out the financial feasibility model but more or less now it is settled for us.
“We have 27 outlets till date and this year we would like to end with 30-35 stores…. We would like to reach 100 by end of 2017,” Revlon India Director (Sales and Marketing) Rajiv Kumar Bobal told PTI.
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The cosmetics company expects the exclusive stores to contribute to at least 20 per cent of its sales by next year.
“As of now the contribution is very insignificant because we have just 27 exclusive stores but we would like the exclusive outlets to contribute 20 per cent. It should happen around 2017-end when we have about 100 stores,” he said.
Bobal added that the stores would be across formats, including kiosks, and would be a mix of company-owned and franchise-operated outlets.
At present, 25 to 30 per cent of its exclusive stores are company owned and the ratio might change when it opens its 100th store.
The company invests 5-10 per cent of its revenues on marketing activities and has allocated a higher share for digital marketing.
“Digital is something we are really focusing on. Digital percentage is very very high, around 30-40 per cent.
“We don’t do television (advertising) but focus on radio and print as a medium which we find more effective. That’s why digital takes a higher percentage,” he said.
Revlon India currently enjoys a market share of 13-15 per cent in the $ 233-million colour cosmetics market and around 4 per cent in the $ 274-million hair colour market.