FMCG major HLL’s cosmetics division Lakme Lever is aiming to more than double its network of salons to 150 from the present 60 boutiques in next two years. The cosmetic brand, which is a part of the home and personal care division (HPC) of HLL, has secured a topline growth of 32 per cent in fiscal 2003-04 against around 16-17 per cent in 2002-03.
Anil Chopra, business head, Lakme Lever, HLL, said: “The domestic salon market is estimated at Rs 10,000 crore a year market. Our focus is at the top-end of the salon market, which is around Rs 170 crore a year market.”
Declining to share the brand turnover, Mr Chopra said that Lakme has posted sales growth of 32 per cent in 2003-04 compared with around 16-17 per cent growth in fiscal 2002-03.
Development of Lakme beauty salons is aimed at creating a brand loyal constituency, which will be receptive to a range of product offerings from Lakme. The salons follow Lakme guidelines on cosmetics, facial care, hairstyling and grooming.
Mr Chopra said the company has roped in three designers to interpret its event-based (Lakme India Fashion Week) theme ‘Fruit Shock - The Juicy Look of Summer’. This means: The Lakme Look will be positioned under three fashion platforms: Pop by Anshu Arora Sen, Burst by Anamika Khanna, and Crush by Aki Narula.
“In the last couple of weeks we’ve launched a range of lipsticks, nail enamels and lip gloss, and with the fashion event, we’ve introduced ‘Shimmer Eye Cube’, a compact powder eyeshadow priced at Rs 125,” said Mr Chopra.
He added: “Lakme’s approach will be to secure over 50 per cent market share in whatever categories it enters. The brand’s thrust will remain in the domestic market and as for exports we will focus on neighbouring countries.”
In the quarter ended March 2004, HLL posted net sales of Rs 2,353 crore with HPC division accounting for Rs 1,573 crore.