Lakme restructures business model

Lakme Lever, the beauty and wellness services business has restructured its business model. Lakme-Lever may also opt for a joint venture with a mall developer or a real estate major, once the new business model is in place. 

This move by Hindustan Lever's Lakme is an attempt to take on aggressive competitors vying to capture the growing spends of Indian consumers on personal grooming. There are  over 120 Lakme Salons across the country,

Lakme Lever's hybrid business model - a handful of company-owned salons and over hundred franchisee run - will now be tweaked in favour of more company-owned salons.

The new business model will also involve launching another top-end variant, Lake Studio. The salon is also being geared to be a specialised retail point to market Lakme's personal care products.

Lakme-Lever has shut down a couple of company-owned Lakme Salons which will be re-launched as high-end specialised beauty centre, Lakme Studio. The remaining lot of 118 Lakme Salons are also being refurbished.

A tie-up with a JV partner could happen after a couple of months.