Reliance Retail to acquire Sephora business from Arvind
28 Sep 2022
Reliance Retail is acquiring the India franchisee business of Sephora from Arvind Fashions, reports citing sources familiar with the development said on Tuesday.
Sephora is a French multi-brand beauty products chain owned by the world’s top luxury goods retailer LVMH Moët Hennessy Louis Vuitton. Arvind Fashions Ltd. operates brands such as USPA, Tommy Hilfiger, Flying Machine, Arrow, Calvin Klein and Sephora in India.
Further, the reports also quoted some industry executives as saying that Reliance Retail has already informed various malls about its acquisition of Sephora and has sought changes in the lease agreements accordingly.
Reliance is expected to announce the deal in four weeks’ time, the reports said.
This is the third time LVMH-owned Sephora would be changing hands in India. Seven years ago, the French luxury giant had snapped its franchisee agreement with Genesis Colors to partner with Arvind.
Prior to its 2015 tie-up with Arvind, Sephora’s rights rested with DLF Brands—the retail arm of real estate company DLF Ltd. Its operations were also managed by New Delhi-based Genesis Colours. The tie-up however was strained in 2013.
Reliance Retail will now inherit a chain of Sephora-branded beauty and cosmetics chain in India that sells multi-branded products.
According to Arvind Fashions Ltd’s FY21 annual report, Sephora has 24 stores in India in 12 cities. Globally, the beauty retailer known for retailing premium cosmetics and perfumes such as Bobbi Brown, Benefit Cosmetics, Lancome, etc is present in 35 countries with over 2,700 stores.
The move comes as Reliance Retail sets its eyes on the beauty and personal care market in India after dominating the apparel retail segment in the country. India’s beauty retail market is expected to reach Rs2 lakh crore by 2025 driven by a higher propensity to shop online owing to increased internet penetration as well as a large millennial and gen-Z populations with aspirations and growing disposable incomes, Motilal Oswal Financial Services Limited (MOFSL), said in a 2021 report.
Reliance Retail is getting into a multi-brand beauty retail format in order to better compete with the likes of omni-channel beauty retailer Nykaa.