L’Occitane’s India plan: luxury & affordabiltiy

French luxury skin care and beauty brand L’Occitane plans to expand

its operation in the Indian market. The brand had entered the Indian market in 2001 with Ravissant through a distributorship model. Now, they have re-entered the market through a joint venture with Kolkata-based Beauty Concepts. According to L’Occitane, Asia Pacific, President Andre J Hoffman, the elaborate laws and high duties in India makes it difficult for a brand to set up shop. They had to bring in the right management as well to ensure that all aspects are in sync with each other.

 

Over the next five years, the brand plans to open 20 stores. So far they have opened 50 shops in China over the last four-and-a-half years. The products are priced competitively. They are targeting the class A and B plus consumer. However, they have made a conscious decision to be an affordable luxury brand and also to build a strong consumer base here as Indians are very value conscious.

Founded in 1976, the brand today operates more than 1,200 boutiques across 90 countries and remains a global player offering high quality fragrances, skincare and body care products. Even during the economic slowdown the brand had product launches, marketing initiatives and promotions. L’Occitane managed to perform well and clocked a double-digit growth on a global scale for the group. About 49 per cent of the global business comes from Asia Pacific while Japan accounts for 25 per cent of their business.