Sephora puts Reliance Group in charge of India business

Sephora has a new business partner in India. The Reliance Group is taking over the Indian operations of the French beauty retailer owned by the LVMH group, which had been run for eight years by Arvind Fashions. The transaction is valued at INR990.2 million, equivalent to €11.1 million.

The Reliance Group is a retail specialist and will be taking control of 26 Sephora stores across 13 cities in the Asian country. The group intends to expands Sephora’s presence in the prestige beauty segment in India both via physical retail and e-tail.

In fiscal 2022-23, Arvind Fashions’ beauty division, which includes Sephora’s India stores, generated sales worth INR3.37 billion, equivalent to approximately €38 million. Sephora first entered the country in 2012.

“Rising affluence, increasing urbanisation, and the widespread influence of social media have fostered greater awareness of self-care and beauty, unlocking significant opportunities in the prestige beauty segment. This is an opportune moment for us to invest in expanding our presence and introduce new, captivating, and exclusive brands,” said Alia Gogi, president Asia at Sephora.

The Indian beauty and skincare market, whose value is estimated at $17 billion (€16 billion) is expected to record an average annual growth rate of 11% in the coming years, and is still in its infancy, according to a press release by Sephora.

An opportunity that the Reliance Group, owned by billionaire Mukesh Ambani, is keen to tap. The group currently operates 18,650 stores in India, in sectors ranging from food to electronics, fashion and pharmaceuticals. In April, it launched its own e-shop selling beauty products, called Tira.

Sephora, which operates over 2,700 stores worldwide, has recently renovated its flagship on the Champs-Elysées in Paris. The chain took the opportunity to say it is looking forward to topping the €20 billion annual revenue mark. In 2022, Sephora reportedly recorded a revenue of €12 billion.

(with Reuters)