A pack of shea butter hand cream is sold somewhere around the world every 10 seconds, you are informed. Given that a pack costs about Rs 1,500 or its equivalent amount in different countries, one can only surmise the world is doing very well indeed for it to be able to afford it with such frequency. Not to mention that the company manufacturing the product, L?Occitane, the Provence-based personal care firm, is indeed doing well, having sold double of what it expected to in the one month it has been open at Delhi?s Khan Market and has just opened its second store in the city, complete with all the auspicious pujas, at DLF Promenade.
?We have had many enquiries in the past about why we were not in India,? says Andr? J Hoffman, President, Asia-Pacific. ?It?s too early to speak of how we are doing, but we see India as a significant market in the coming few years,? he says, pointing out that even a 1-2% of the Indian customer base would be great. He has plans to open about 20 stores in the next few years, but as he explains, when the brand entered China about four-and-half-years back, they had planned for about 20 stores in five years, but already have 50 points of sale, which includes seven boutiques. ?We are looking at Delhi and Mumbai to start with,? he says.
L?Occitane entered India with a 51% stake in a joint venture with Kolkata-based Beauty Concepts. The brand has had earlier presence in the country?some stores have been stocking the products from the early part of the decade, while Ravissant had a distributorship and set up a boutique about two years ago at Select Citywalk. Due to its global tie-ups with hotel chains such as Four Seasons and Shangri La, the products have also become familiar with people using these hotels.
?Entering India is not easy,? says Hoffman, who points to complex regulations, extremely high rents and a lack of adequate retail infrastructure as bottlenecks. ?Duties are still very high,? he adds, explaining that pricing for the brand will be competitive in India, the prices for toiletries will be identical to markets such as Singapore or Dubai, while they are about 5-10% higher for creams. L?Occitane is also being careful about its store locations. ?We are conscious of the need for cosmetic zoning and both our locations are very apt for the brand,? says Guillaume Geslin, General Manager, L?Occitane India, who has the specific task of growing this market. The brand does not rule out a return to Select at a new location. ?The cycle that Japan and China have experienced is just starting for India, and as multi-brand stores come in, the retail experience should take off,? he says.
Hoffman, who has been based in Hong Kong for 25 years, sounds optimistic. A premium brand, it already has about 1,200 points of sale in 90 countries and its new design boutiques, a crucial element in brand building, are bright and beautiful in shades of yellow, inspired by the ?immortal flower?, and the greenhouses of Provence, one of France?s most beautiful regions.
Asia has proven to be a good market for the brand, which established its first outlet just about three decades ago. Japan is already its largest market, with about 3,00,000 registered VIP customers. The brand hopes Asia overall will grow by about 23% this year, says Hoffman. ?We are number 2 in prestige brands in Japan,? he adds, admitting that it would take India a long time to reach that level. But given that in India too, shea butter is already the best-selling product, it may not be long before it becomes another success story.