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Dabur’s subsidiary to launch health and beauty retail stores ‘new-u’ by January 2008

05-December-2007
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Dabur’s subsidiary to launch health and beauty retail stores ‘new-u’ by January 2008

H&B Stores Ltd, a wholly owned subsidiary of Dabur India Ltd, has launched its specialty beauty, health and wellness business, ‘new-u’. These stores would purely focus on beauty, health and wellness products, with around 20,000 stock keeping units (SKU) in different categories – colour cosmetics, fragrances, skin and personal care, baby and family care, fashion accessories, general merchandise, Ayurvedic, herbal and pharmaceuticals, among others. The first ‘new-u’ outlet would open by end of January in Delhi, and then expand to other major cities in India.

Unveiling the brand logo, Graeme Fraser, Head-Sourcing, Buying and Merchandising, H&B Stores, said, “The logo has a contemporary design feel that reflects the brand’s desire to offer the Indian shopper a totally new and modern retail experience. It firmly emphasises the brand’s customer focus – ‘about you’ – meeting the emerging customer needs and expectations with unrivalled care and service available in India today. We wish to provide our consumers an international quality store environment and product range incorporating a global look and feel.”

Set up with an initial investment of Rs 140 crore that is earmarked till 2010, H&B Stores is aiming at tapping the $300 billion Indian health and beauty market with these stores. ‘new-u’ is targeted at SEC A and B, with women being the main TG, at 70 per cent. The stores would also provide comprehensive health and beauty solutions by experts who will offer advice to consumers on particular products that suit their specific needs.

According to Peter Baker, CEO, H&B Stores, the differentiating factor of the ‘new-u’ stores would be its size, varying from 1,200-6,000 sq. ft. Divulging more on expansion plans, he said, “By the end of the 2007-08 fiscal, we have scheduled six ‘new-u’ outlets in Delhi and NCR. We will then quickly expand our presence into other markets, adding another 50 stores in 2008-09, and take the number to 160 by 2009-10.” The company aims to open 30-40 stores in West India alone.

The company would be spending two per cent of its sales on advertising. It is expecting a revenue of Rs 1,000 crore from ‘new-u’ by 2010, with Rs 18,000-22,000 per sq. ft. per annum.

No ad or media agency has yet been roped in for the mass media activities for ‘new-u’. However, Baker added that the company would tie up with fashion, beauty and lifestyle events to promote the brand, as also advertising on print. He however ruled out the possibility of using the television as a medium for advertising for the time being.

Baker said, “To provide value for money to our customers, we will have a lot of promotional offers like below MRP on monthly basis, as also various bonus and multi-packs with every purchase.”

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