Women's range under Spinz planned, men's range to follow
CavinKare Pvt Ltd is all set to expand its range of cosmetics. Apart from its plans to launch a range of products for salons, the company is test-marketing colognes and perfumes. According to Mr C.K. Ranganathan, Chairman and Managing Director, the company's range of shampoos, talc and haircare products has so far catered mainly to the mass market.
"With our new colognes and perfumes we are planning to cater to the mid-level market as well."
The typical perfumes market, according to the company, is demarcated into premium, middle and lower segments.
The upper segment has perfumes selling in the range above Rs 1,000 for 100 ml (typically, foreign brands such as Poison, Hugo and ITC's Essenza Di Wills are in this price band).
The mid-range comprises perfumes in the range of Rs 350-1,000 for 100 ml (a typical brand in this segment would be Charlie).
There's a huge low-end market occupied by many local brands, which sell in the Rs 100-350 range for 100 ml.
CavinKare is planning to foray into the mid-market segment targeted at women, under the Spinz brand name for now. A new brand would be created later, said Mr Ranganathan, adding that a men's range of perfume would be considered at a later stage.
According to him, there is a huge, and mostly uncontested, space for the company's proposed range of products for salons.
The company may test-market its new products in a couple of months. Besides, CavinKare is planning to develop "beauty solutions from ayurveda" at its salon chain.
CavinKare is also planning brand extensions. It recently extended the shampoo brand Nyle to cold cream and moisturising lotion and is test-marketing them in the North.
On the growing mall culture, Mr Ranganathan said that sachets don't seem to be relevant to the new retail formats.
"In big department stores, sachets are coiled and stashed somewhere in a corner and not displayed attractively. Consumers even find it a bit infra dig to buy them at big department stores."
Having pioneered the sachet category, making sachets relevant to the new retail culture is top on the company's agenda. "Packaging will make the difference. We are planning to package sachets in attractive cartons and sell them."
CavinKare currently exports its products to West Asian countries and other select markets. "We are also planning to launch some mall brands, which are usually big in size, for the export market."
Mr Ranganathan said that CavinKare is still on the prowl for acquisitions of brands sized Rs 25 crore to Rs 200 crore. He added that the company's new facility in Uttaranchal has gone on stream.