Shiseido, Japan’s largest makeup group, has launched its NARS Cosmetics line in India. This is the first time that the brand has embarked on a true omnichannel strategy in its first year of launch, said Nicole Tan, president & CEO, Shiseido APAC. In an exclusive interaction with Shubhangi Shah, Tan spoke about the brand’s expansion plans, how it sees the India market, how some of the products have an India connect and more. Edited excerpts:
What took you so long to launch in India?
We had been studying and analysing the India market for a while now, and realised now was the right time. As per Euromonitor, the Indian beauty market will be worth $20 billion by 2025. In terms of growth, we also know that it’s set to grow by a double-digit figure in the next five to ten years. The segment in which we compete in, which is the prestige-premium, is set to grow at a 15% CAGR. So that eclipsed the growth rates that we see at other places.
Also, why at this juncture; we do think that in the last few years Indian women have really come into their own with the advance of internet, influencers providing them with information, a lot more women have travelled a lot more extensively and they are exposed to international brands. Also, more women are entering the workforce, and the middle class is moving up.
So, we think that now is a good moment for the brand launch, plus the factor of organised retail. A lot of prestige brands when they try to enter a new market try and provide the right experience to consumers.
At this juncture, India, with respect to the consumers’ demand and organised retail environment, and so on, has really presented itself in the right way.
Do you have different price points for the Indian market as compared to other countries?
We have done some extensive research before entering into India, which was essentially to understand the consumers’ preferences and what resonates with them. But with that, we also did some competitive price analysis and study. So I would say that for NARS, our suggestive retail prices are very price competitive. Also, as a new brand entering the market, there is also a need to provide a more accessible trial for consumers as they try a new brand.
Have you developed any new products or tailored existing ones to suit Indian customers?
The research we have done has also shown that there is no one universal India. India is exciting also because it is so massively diverse, and NARS itself is a very inclusive and diverse brand. Just take our foundation for example, just within one foundation range, there are 40 different shades already. So with that extensive shade offering, I would say that we are in a very good position to offer inclusivity as well as diversity.
On whether we are developing any specific products, at this juncture, not specifically, but that doesn’t mean we are not going to do it in the mid-term. Also, the brand actually has a very close connection with India. For example, we have an iconic blush, and one of the shades within that blush is called Taj Mahal.
What are your plans for offline stores?
This year, we are opening 14 brick and mortar stores. This is the first time that the brand has ever embarked on a true omnichannel strategy in its first year of launch, in the first stage of launch. So it’s not offline and online, we are also talking about omnichannel strategy in offline business, where we are looking at different options to get products available to the consumers.
We have tied up with Shoppers Stop, we are already available across 10 Sephora stores across the country. And at the same time, we are also opening a NARS store in Delhi next month.
What about your e-commerce strategy?
Our e-comm partners at this stage are the retailers we have opened the brick and mortar stores with. We do believe that India as a market presents a great opportunity with e-commerce.
Through our partner and distributor, which is Global SS Beauty, we will definitely be discovering further extension into the e-commerce space in India as we expand as a brand. I also think that our presence in e-commerce will be critical for the accessibility of our products outside metro cities. So we will definitely look to scale up.
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