The Body Shop is undertaking a massive price cut of 10-35 percent to tap into the cosmetics market. Besides expanding into newer cities, the company will rely on accessibility and affordability to gain market share in India.
A 100 percent subsidiary of French cosmetics brand L’Oreal, The Body Shop is also extending its product range to offer baby care products.
“We are going aggressive on our pricing. Our price reduction strategy has helped us reach a broader spectrum of shoppers, thereby widening our consumer base in India,” Mr Jonathan Price, Managing Director, told Business Line.
The company had undertaken a similar exercise last year and permanently reduced the prices of 200-odd products following the global economic downturn. “We will be adding another 600 products in India. We are aware that there are many Indian consumers in tier 2 and tier 3 cities who would welcome the lowering of our prices,” he said.
The Body Shop has 35 stores across 16 cities in India. The company said its expansion will include shop-in-shops as well as standalone stores. “We have a tie with Future Group’s Central Mall and Debenhams. We are also looking to forge a similar alliance with Shopper’s Stop.
At least 30 stores will be added in the coming year,” Mr Price said. He, however, declined to divulge investment figures for the proposed expansion.
This story was provided by The Hindu Business Line.
(Source: The Hindu Business Line)