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Chapter 2 Industry insights

2.1Cosmetics Definition of cosmetics:

Cosmetics are defined as substances used to enhance the beauty of the human

body.Cosmeticsare substances which are defined under the Drugs and Cosmetics Act 1940

and Rules 1945 as “Articles which are intended to be rubbed, poured, sprinkled, or sprayed on

or introduced into or otherwise applied to the human body or any part thereof for cleansing,

beautifying, promoting attractiveness or altering the appearance, and includes any article

intended for use as a component of cosmetic.

History of Cosmetics:

Much before the rise of modern civilizations natural made cosmetics were used by earlier

human races. Cosmetics use for protecting and for beautification purpose dates back to Vedic

and Puranic period. Use of animal parts, vegetable leaves, flowers, colored stones, shells etc.

was common in earlier human races of tribal era. (Mithal, Saha 2000)

Cosmetics primarily used for enhancing personal appeal of human being and care of body

parts. According to archeological evidences several Egyptian and Greek cultures used colored

earth, malachite green, copper ore, lamp black, myrrh etc. for beautifying body in various

ways. (Nema et.al 2009).

In Egypt oils and creams were used for protection against hot sun and dry winds. Cosmetics

were integral part of Egyptian culture. Approximately 10000 BC men and women used

scented oils and creams to clean and soften skin, mask body odor, dyes and paints to color

skin, body and hair, rouge on lips and cheeks, henna to paint nails, and Kohl dark colored

powder for eyes and eyebrows. (Chaudhri and Jain, 2009)

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Table 1.Chronology of development of cosmetics

Period Development

Circa 4000

BC

The first archeological evidence of cosmetics usage found in Ancient Egypt.

Old

civilizations

In Indus, Romans, Greek, Chinese, Mesopotamia civilizations, cosmetics

were associated with religious practices and used cosmetics containing

mercury and often lead. The uses of Kohl and henna as cosmetics have roots

in North Africa. In Egypt some high priests were recognized as medical

practitioners and everything related to body and healthcare was associated

with medicine, their practice was freely adulterated with astrology magic,

mysticism and religion. So it can be said that cosmetics were unearthed

from tombs, temples and other religious places in early period.

Circa 3000

BC

Chinese people began to stain their fingernails with gum Arabic, gelatin,

beeswax and egg. India had a medical code since 1000BC in Ayurveda and

used the native raw material in medicine; also in religious rites and for

aesthetic use to alleviate the rigors of the hot climate excavations in the

Indus Valley have yielded cosmetics pots of clay, stone, ivory, faience and

alabaster from the third to second millennium BC .They were believed to be

Kohl pots. Henna and lamp black were used in for eye make- up. Most

popular being sandal wood perfumed body oil to give a long lasting odor.

Fragment oils were used in the hair for both men and women dyed grey

hair, eyebrows were painted black and brought fairly close together. There

was no mention of soap being used to wash the body but clay was

mentioned that was called sopocosmetics. Barley flour and butter were used

as a cure of pimple and pumice stone used for whitening teeth.

Circa 460-400

BC

Hippocrates (father of medicine and pharmacy) dissociated medicine from

magic religion and superstitions; he also advocated importance of diet,

exercise, sunlight, baths and massage for good health and beauty.

Theophrastus was probably the earliest Greek who wrote on the subject of

perfumery. He also described the raw material (various parts of plants,

leaves, twigs, root, wood, fruit, gum or mixture of several parts) from which

perfumes were prepared,

Gupta Cosmetic hygiene advanced, ladies used homemade creams, oils, pastes,

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dynasty

(India)

hair dyes, and perfumes abundantly. Cosmetics made up of camphor, myrrh,

saffron, aloes, sandal, vermillion (kumkum), turmeric various spices, herbs,

resins, fats etc. were given to the world by India.

Circa 50 BC Art of cosmetics and cosmetology applying and compounding developed so

much in reign of Queen Cleopatra of Alexandria.

Circa 40 BC Materia Medica prepared by Pedanios Dioscorides, Galen prepared first

cooling ointment (Ceratumrefrigerans) and cold cream.

Circa 4rth or

5th centuries

Henna had been used in India as a hair dye, or in the art of mehandi, in

which complex designs were painted on the hand and feet, especially before

a Hindu wedding and on festivals.

Circa 529 AD Plato established Academy of Athens for exchange of ideas from all over the

world especially to cosmetics and perfumery.

Circa 936-

1013 AD

Abu’ al-Qassim al-Zahrawi or Abulcassis a cosmetologist and physician

wrote medical encyclopedia Al-Tasreef, in 30 volumes. Chapter 19 was

devoted to cosmetics.

Circa 14th

century

Henri de Mondeville, a Norman separated cosmetics from medicine.

Paracelsus introduced a large number of chemical substances in drugs and

cosmetics.

Circa 15th

century

Andre Le Fournier, Dean of Faculty of Medicine at University of Pans,

France published a comprehensive text on beautification. Jean Liebant,

French physician and agronomist wrote several books and notes on general

health, toxicology and cosmetics.

1492 AD Vasco da Gama gave new route of India to the world, the advantage for

trafficking in coveted spices, medicines, cosmetics and other luxuries from

India to Europe.

Circa 16th

century AD

Renaissance period in Europe medicine and cosmetics enhanced in this

period. During Elizabethian period, cosmetics and perfumery of all kinds

were used lavishly. Notable advances in the field of alcohol distillation,

wigs, tooth whiteners, dentifrices and golden hair fashion. Queen Elizabeth I

of England was one well known user of white lead, with which she created a

look known as the Mask of Youth. FranngaloPaladini produced a cream and

toilet vinegar widely used by the ladies of Tuscan court. ThomusTusser ,in

point of good husbandry, gave a list of 21 herbs suitable for strewing .iron

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oxide and cinnabar (mercury sulphide) were used for rouge and lead

carbonate for face powder. Egg white used to give fashionable glaze to the

face. Most species to whiten the teeth included ground bricks, cattle bone,

red and white coral, eggshells, alum, pumice, etc. victims of spot and pimple

treated with sulphur and turpentine for an hour then rubbed them with fresh

butter.

1641 AD First soap made in England, law of gallantry had recommended that entire

body be bathed occasionally, the hands be washed at least every day, the

face almost often and head from time to time.

17th and 18th

centuries

Cosmetics still made at home, raw materials purchased from pharmacies and

druggists. Development of cosmetics in America contributed greatly through

newspapers and legitimate pharmacies.

1760 AD Men used rouge, blackened their eyebrows and started to wear wigs.

19th century Period of extraordinary activities and accomplishments in the field of

science and technology.

1800s Queen Victoria publicly declared makeup improper.It was viewed as vulgar

and acceptable only for use by actors.

1818 AD Hydrogen peroxide was discovered to be used as bleach hair.

1856 AD Discovery of borax in California, important ingredient for cold cream.

1861 AD Thomas Graham worked out on colloids and emulsion formation.

1888 AD First cosmetic deodorant was invented by an unknown inventor from

Philadelphia, and was trademarked under the name Mumm. The 20th century

make-up became fashionable in the United States of America and Europe

owing to the influence of ballet and theatre stars and the most influential

new development of all was that off movie industry Hollywood. Among

those who saw the opportunity for mass market cosmetics were Max Factor,

Sr. Elizabeth Arden, and Helena Rubinstein.

1905 AD Charles Nessler, a German invented mechanical means of putting permanent

curls in hair with borax.

1907 AD Modern synthetic hair dye was invented by Eugene Schueller, founder of

L’Oreal.

1914-1919

AD

World war I created many problems for cosmetic and medical industry.

After the first world war, the flapper look came into fashion for the first

time, and with it came cosmetics: dark eyes, red lipstick, red nail polish and

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the suntan, invented as a fashion statement by Coco Chanel. Previously,

suntans had only been sported by agriculture workers, while fashionable

women kept their skins as pale as possible.

1920 AD Beauty salons flourished in America and Europe.

1922 AD King Tutankhamen’s tomb was opened in at pyramids, cosmetics were

found inside that were still fragrant and perfectly usable. Palettes were also

found in pyramids, these were originally used for grinding and mixing face

and eye powders.

1923 AD Poucher’s book on cosmetics first of its kind in English published.

1936 AD Eugene Shueller invented sunscreen lotion.

Post world

war II,1939-

1945 and

after

Period of growth of chemical and pharmaceutical industry. Availability of

synthetic colors and pigments and detergents revolutionized cosmetics

industry.

1940 AD Brushless non-lathering shaving cream was introduced.

1952 AD Roll –on deodorant launched .Aerosol deodorant developed.

Source: R. Nema et al,Textbook of cosmetics, Page no.4-6

2.1.1 Classification of cosmetics A detailed classification is given below

1. Cosmetics for skin

Cosmetics used for skin can further be divided into two groups

a. Those which are applied for beautifying and protecting. e.g.

• Skin creams, lotions, milks and emulsion: Used to moisturize the face and body,

e.g. vanishing cream, cold cream, cleansing cream, foundation cream, massage

cream, all purpose, moisturizing lotions, hand lotions, face wash, anti-ageing

products, lip balm, lip salve.

• Face powders, face packs and masks

i. Powders: Used to set the foundation, giving a matte finishes, e.g. face

powders, and face packs, body powders or talcum powders.

ii. Compacts: Round cake of face powders, cake.

• Astringents and skin tonics: antiperspirants, astringent lotions, astringent

emulsion, stick astringents , astringents in gel form

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• Sunscreen, suntan and anti-sunburn preparations, sunscreen lotion ( to protect the

skin from damaging UV radiation )

• Colored make-up

i. Lips make-up, lipsticks, lip-gloss, lip pencil, Lip-duo.

ii. Cheeks make-up Rouges, blush or blusher (used to color the cheeks and

emphasize the cheekbones. This comes in powder, comes in powder, cream

and gel forms).

iii. Eye make-up preparations: eye shadows, mascara, kohl, foundation (used to

color the face and conceal flaws to produce an impression of health and youth,

usually a liquid, cream or powder), bronzer (used to create a more tanned or

sun kissed looks).

• Concealer: a type of thick opaque make up used to cover pimples, various spots

and inconsistencies in the skin.

• Skin lighteners or bleaches

• Anti perspirants and deodorants

• Bath preparations

b. Cosmetics which are applied on skin for nourishment of skin

• Creams vitamin creams, moisturizer, hormones cream, fruit juice creams.

• Lotions treatment products to repair or hide skin imperfections (acne, dark circles

under eyes, wrinkles, etc.

2. Cosmetics for hair

Cosmetic used for hair can be classified into following groups

a. Preparation for cleansing e.g. shampoos clear liquid shampoo, liquid cream or

lotion shampoo, antidandruff and medicated shampoo.

b. Hair grooming preparation, e.g. waving lotions, hair setting lotions, sprays.

c. Hair straighteners.

d. Hair tonics and conditioners.

e. Antidandruff preparations

f. Hair removers

g. Hair coloring and bleaching preparations.

h. Preparation for coloring of eyelids and eyebrows—Mascara, eye liners, eye

shadows.

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3. The decoration of nails is in the term of shine is done by applying abrasive materials

like stannic oxide and powdered silica. In general cosmetics applied on the nails are

classified as:

a. Nail lacquer and polishes

b. Enamel removers

c. Nail bleaches

d. Nail white

e. Cuticle removers

f. Nail cream

g. Nail strengtheners

4. Cosmetics for dental care

These preparations are normally used from the point of view of hygiene foe dental and

oral cavity. White and shiny teeth and good breath are considered as a part of cosmetic

personality. All kind of preparations for cleansing of teeth are manufactured and

marketed by cosmetics companies. These preparations can be classified into two

groups.

1. Preparations used for cleansing of teeth, e.g. Dentifrices

a. Toothpowders

b.Toothpastes

2. Proportions which are used as hygienic product for oral cavity

a. Mouth washes

b.Gargles

Cosmetics can be also described by the form of the product, as well as the area for

application. Cosmetics can be liquid or cream; emulsions; powders, (both pressed and

loose); dispersions; and anhydrous creams or sticks.

Source: R. Nema et al, Textbook of cosmetics,Page no.8-11

2.1.2 Global cosmetics industry According to research conducted worldwide on the global cosmetics industry by Datamonitor,

make up market is expected to grow at an astonishing rateof 19.7 % between the years 2009

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to2014. In 2014 the market value forecast is of $35853.2 million and 3639.8 million units in

volume.

The spiraling rise in the number of make-up and cosmetics stores, beauty parlors, Grooming

and make up workshops, fashion events, already bear testimony to the conclusions of this

research.

There have been many driving factors behind the unprecedented growth of the global

cosmetics industry, the main among them are increased awareness about health and beauty

products, advent of brands, media exposure, improved disposable income.

2.1.3 Cosmetics industry in India The Indian cosmetic industry is going through active phase in terms of product development

and marketing. According to CII the total Indian beauty and cosmetic market size currently

stands at INR 4465 Crores and showing growth between 15-20% per annum. This industry

can be broadly classified into body care, skincare, eye care, color cosmetics, hair care and

makeup. There is great demand for more advanced and specialized cosmetics. Marketers have

noted this change and developing new marketing strategies to serve the Indian consumer.

Marketers are spending sizable amount of money and time to analyze different demographic

and psychographic characteristics of the Indian population.

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Figure 1.Beauty Care Market Segmentation

Source: PWC wellness report Sept 2011

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Cosmetic Products:Cosmetic products (skincare, hair care, color cosmetics and fragrances) • Hair and skincare products dominate the market. • Key players include Hindustan Unilever Ltd, Procter & Gamble, Dabur and L’Oreal. • There has been a discernible shift of demand from regular skincare products to

specialized products like dark circle removing creams, anti-ageing creams, etc. • Semi-urban and rural markets are expected to drive future growth.

Salons:

• Explosive growth has been driven by the organized salon segment. • Key players include Lakme, VLCC, ShahnazHussain, Jawed Habib and Naturals, among

others. • While there is an increasing shift from basic salon services to advanced services, basic

salon services continue to remain a steady footfall generator. • Beauty services no longer continue to be a female bastion. Players are increasingly

focusing on setting up unisex salons. Cosmetic Treatments:

• Enhancement through cosmetic surgery is gaining acceptance. • It is a highly fragmented industry. Large players in the non-invasive segment include Kaya

and VLCC. Hospitals and standalone clinics largely cater to the invasive segment. • This segment will continue to be driven largely by urban markets, though inroads have

been made into Tier 2 and Tier 3 cities. Source: PWC wellness report Sept 2011

Table 2. Major segments in personal care market

Product Category Rs. Billion % Value Shampoos 16.5 11.7% Skin Care 21 14.9% Hair Dyes &Colors 7 5.0% Color Cosmetics 3.5 2.5% Oral Care 22.5 15.9% Men’s Grooming 12.75 9.0% Personal Wash 55 38.9% Deodorants & Perfumes 3.1 2.2% Total 141.4 100%

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Figure 2.Major segments in personal care market.

Source: Report of Italian trade commission:The Cosmetic & Personal Care Sector in India Market Research 2008

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Important Product categories of Indian cosmetics market.

Skin care: Fairness (Whitening) products constitute a very large share of the market in India. Also advanced skin care products - anti-ageing and restorative treatments – are also gaining acceptance among up-market consumers. Color cosmetics: Although the market is fragmented and small, nail and lip care are interesting and less-complicated entry points for a new brand, especially in the OTC channels. This is also because brand loyalty levels for nail enamel and lip sticks tend to be lower than in skin care. This enables visibility as well as an easy entry for a new entrant, based on purely functional aspects - color range, long lasting, anti-smudge properties etc. Hair colors and dyes: Range of colors, long lasting effects are the most sought after features. Shampoo: medication as the functional benefit; products/ variants with anti-dandruff, anti-lice and other specific hair nourishing properties. Men’s grooming products: There are also opportunities for niches in men’s skin care, especially in moisturizing lotions, facial essence and whitening creams, which are presentlyclubbed under the general skin care category. Natural/ herbal products: emphasis on heritage/natural/ traditional products, natural ingredients like olive oil.

Hindustan Unilever accounted for a 29% value share in colour cosmetics in 2011,because of the leading brand Lakmé (euromonitor international 2012)

Source:Italian trade commission:The Cosmetic & Personal Care Sector in India Market Research 2008

2.1.4 Female cosmetics consumers: Cosmetics have become more than a mere must -have necessity. These products are viewed as

a style statement, as consumers treat them as a reflection of their personal status.

In India number of female consumers is increasing tremendously. This is because of

increasing number of women becoming earning members of the family. Rising westernization

and changing lifestyle have made urban women to proactively seek for health and beauty

offerings to look and feel good. Media influences and increasing levels of literacy is

stimulating awareness of personal hygiene as well as beauty consciousness, enhancing the

adoption and frequency of usage of cosmetics and toiletries especially amongst urban users.

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Table 3.Consumption of make-up products among women in India

Age group Share of population % share of make-up product sales

Under 15 years 33% 10%

15-34 years 34%

50%

35-44 years 12%

20%

45 – 54 years 11%

15%

Over 55% 10% 5% Source: Report by Italian trade commission:The Cosmetic & Personal Care Sector in India Market Research 2008

2.1.5Keeping pace with the changing times: In 21st century India as a country is growing both in global influence and affluence. More than

two decades of India’s economic liberalization has helped empower women in many ways.

Job creation and increased job opportunities have allowed Indian women to be financially

independent enabling that extra confidence in them.21st century Indian women are more

educated and empowered to take their own decisions and make choices.

What needs to be pointed out here is that whether it is an extremely strong, professional and

business look of a woman or a traditional look it is never completed without some makeup

essentials. Fashion conscious todays women want the best newest, stylish and trendier items

to use. Taking inspiration from celebrities’ cosmetics have become sought after fashion items

and status symbols for varied ladies age demographics.

Table 4.Psychographic profile of Indian Women shoppers.

1 The contented conservative Is a housewife who is happy with her state of life/ society.

2 The archetypal provider Believes that her role is to provide for and look after the well-being of her family.

3 The anxious rebel Is a working woman who is not happy with the existing state of affairs.

4 The troubled homebody Is a housewife who is not happy with the existing state of affairs.

5 The tight-fisted traditionalist

Is a traditional woman who believes in saving for tomorrow.

6 The affluent sophisticate Is an affluent woman who is comfortable with the finer things in life.

7 The contemporary Is a housewife who plays an active role in the household

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housewife and sees herself an equal to her husband. 8 The gracious hedonist Is a working woman who believes in looking after

herself well. Source: Sinha P.K.,Uniyal D.P., Managing Retailing, Page no. 88

Peer pressure is driving growth in the wellness space.

• Improved health awareness, exposure to global beauty and fashion trends and increasing

media penetration are driving growth in the wellness space. The need to look and feel good is

gaining momentum, especially among the middle-class.

• Society’s obsession with celebrities and celebrity culture is resulting in the added pressure to

look good.

Increase in discretionary spends is positive for the industry. • Rising incomes are resulting in

increasing discretionary expenditures.

• Aspirational products and services are finding many takers.

(PWC Wellness report 2011).

Powerful or successful women represented in various Medias are independent, strong, and

fashion confident women. The look of working woman popularized by media often shows

them adorning western outfits; designer accessories and make up essentials. This chic look is

becoming very popular among fashion conscious women in India, and cosmetics are

becoming must have fashion items.For many women, there are psychological and emotional

aspects of shopping. Women are patient and inquisitive; they need comfortable environment

for shopping.(Paco Underhill 2002).

Table 5. Media-graphics of Indian Women Shoppers

1 Media –intense modern Ms. Who are younger, more modern and career oriented ,and show high media consumption across TV, press (English and local), cinema, or radio

2 Media medley south skews Who are better educated .There are significant numbers in this category who are working and have a preference for South Indian TV channels.

3 Cine Meenas Who are not too well educated, not western in outlook, and show high TV viewership but a distinct preference for all film –based programmes.

4 The KahaniKkusum Ki category

Which is composed of younger housewives who are better than Cine Meenas , and are heavy watchers of TV, especially soaps and serials.

5 The Mrs. traditionalist category

Which is composed of women who are not well educated, show lower decision making, and are more of Doordarshan and regional Doordarshan channel watchers.

6 Simple Sudhas Who have lower education and income levels, not much spare time, and lower consumption of TV

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7 The amma brigade Which is composed of older middle class women, mainly from South India. They indulge in very little reading, but are heavy watchers of regional TV channels. They are afternoon TV addicts.

Source: Sinha P.K.,Uniyal D.P., Managing Retailing, Page no. 92-93

Table6.Summary of key aspects of women consumer buying behavior towards cosmetics.

Description Findings The average expenditure on personal care and cosmetics products

Between Rs. 500 to 1000 by women

Sources of information for latest and new products in cosmetics & personal care products.

Advertisements - Friends - Window shopping - Word of mouth - Personal visits - Some shops are very old and well established – so it is safe to buy from there due to competitive pricing and genuine products.

Frequency of purchase For regular use - usually pre-decided - Non non-regular products such as perfumes – impulse buying (e.g. while visiting a shop for some other purchases)

Place of purchase Neighborhood General Store - Drug/Chemist Store - Department Store/Super market - Direct Marketing companies - Special Women's boutiques – Not regularly - Company Showrooms - Not regularly (Smuggled goods' outlets, Mail order catalogue are not popular among women consumers)

Source: Report of Italian trade commission:The Cosmetic & Personal Care Sector in India Market Research 2008

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2.2 Retailing A T Kearney’s annual Global Retail Development Index (GRDI) for 30 emerging markets has

shown India in top five positions for three consecutive years 2010, 2011, 2012- on the basis of

overall market attractiveness.

Key facts about Indian retail sector, (Madaan 2011):

The organized retail has grown at a much higher rate as compared to unorganized

retail in India during last few years.

The organized retail has been showing annual rate of over 35%for many years and 10-

15 million sqft quality space being added every year. Overall retail industry is growing

at 8-10% per annum. Thus proportionate share of organized retail in total retail is

projected to move up to 25% by 2015 from 5% in 2007.

As per Technopak advisors report the size of total retail market in India is projected to

be USD 800 billion by 2017 from USD 340 billion in 2007.

The total investment into modern retail formats likely to be USD 36 billion by 2011

by both global and Indian retail majors.

Almost two third of total retail investment is going into modern retail formats-

hypermarkets, supermarkets and specialty stores

2.2.1 Definition: Retailing is defined as all activities involved in selling goods or services directly to final

consumers for their personal, non-business use via shops, markets, door to door selling, mail

order or over the internet, where the buyer intends to consume the product through personal,

family or household dues.

Retail trade primarily can be divided into two segments:

2.2.2 Organized retailing: Any retail outlet chain (and not a one shop outlet) which is professionally managed(even if it

is family run ),has accounting transparency (with proper usage of MIS and accounting

standards) and organized supply chain management with centralized quality control and

sourcing (certain part of the sourcing can be locally made)can be termed as an organized

retailing in India. (Mukherjee, Patel 2005.)

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2.2.3 Unorganized retailing: Any retail outlet which is run locally by the owner or the caretaker of the shop. Such outlets

lack technical and accounting standardization. The supply chain and the sourcing are also

done locally to meet the local needs. (Mukherjee, Patel 2005.)

With the development of organized retail in India, consumers in higher and higher middle

income groups are showing preferences for shopping malls, to shop a variety of products

under one roof and to gain shopping experience and entertainment. ( Mukherjee, Patel 2005.)

2.2.4 Different organized retail formats: A retail format is type of retail mix that the retailer adopts, it includes factors such as the

nature of merchandise and services offered, pricing policy, advertising and promotional

programmes, design of the store, visual merchandising, choice of location and size of the

store. (A.J.Lamba 2003).

Description of organized retail formats:

Table 7. Different retailing formats adopted in organized retailing.

1.Convenience stores 7.Hypermarkets,

2.Specialty stores 8.Warehouse stores/warehouse clubs

3.Supermarkets

9.Shopping malls,

4.Discount stores 10.Direct catalogue retailing

5.Superstores or combination stores 11.Web stores

6.Department stores

Convenience stores:

These stores offer a limited variety and assortment of merchandise at a convenient location

within 1500 to 8000 square feet store with a speedy checkout. They are the modern version of

the neighborhood mom and pop grocery stores.(A.J.Lamba, 2003) Convenience stores offer a

limited assortment and variety and usually charges higher prices compared to supermarkets.

Specialty stores:

These stores offer particular line of merchandise in which they have a large variety both in

terms of the width and depth of their respective product base. These stores provide high level

of service in an area which is usually less than 18000 square feet. (A.J.Lamba,2003). They are

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popular with customers who shop for the particular category. (Ramaswamy,Namakumari

,2010).

Supermarkets:

These are primarily self-service food stores offering daily necessity like groceries, meat

products and fresh produce and are around 30000 square feet in size. Supermarkets attract

customers because of clean environment, fast checkout counters, attractive and organized

layouts and low prices. (A.J.Lamba, 2003)

Discount stores:

The size of discount store varies from 80000 to 150000 square feet. They are similar to

department store in many points and offer a wide variety of merchandise. The quality and

price of range of the merchandise is a little different with limited service but discounted

prices. They focus on lower and middle income consumers unlike department stores which

concentrate on mostly on the higher income category. (A.J.Lamba, 2003)

Superstores or combination stores:

Stores with an area of 130000 to 250000 square feet are called superstores. They stock a much

larger variety of food products than discount stores. These stores carry large variety of food

products as well as deep assortment of non-food merchandise. They carry about 60% of non-

food merchandise such as

apparel,accessories,shoes,appliances,housewares,hardware,toys,electronics,toiletries,health

and beauty aids, kitchen utensils, film developing, prescription drugs, flowers and videotape

rentals. (A.J.Lamba, 2003).

Department stores:

Very large stores which are usually multi-tiered and stock a vast range of products in separate

departments. Department stores stock a broad variety and deep assortment of products with

higher level of customer service than others, and are organized into separate departments for

displaying merchandise. These stores are run on the important principle of increased revenue

through high sales volumes. Each department within the store has a specific selling space

allocated to it. (A.J.Lamba, 2003)

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Hypermarkets:

These are extremely large self-service retail outlets. Their size ranges between 150000 to

300000 square feet, and they stock over 50000 different items. These are unique in size and

are highly volume driven. Hypermarkets offer general merchandise assortment stacked in 10

to 15 feet high racks and hundreds of wire containers, they operate on very low margins and

prices. (A.J.Lamba ,2003)

Warehouse stores /warehouse clubs:

These are the largest retail formats whose size ranges between 250000 to 400000 square feet

and major portion of their profits are generated through club membership. Warehouse stores

generally carry non-food merchandise and some also carry food items.Warehouse stores

typically carry only 2500 items, limited lines. For displaying merchandise cut boxes/cartons

on shipping pallets are used. These stores are low price, no frills, and no service and are

usually located in very low rent areas. (A.J.Lamba, 2003)

Shopping malls:

These are not the retail stores in the true sense but a common mall in which a large number of

stores are located. Every shopping mall has one or two anchor stores; the variety of retailers is

usually different from each other located within mall. Anchor stores bring substantial crowd

in the shopping mall; therefore usually the sites are given to them at much subsidized rates by

the promoters. Promoters select the retailers based on the product mix that they offer, so that

neither too many nor too few retailers have presence in the mall. (A.J.Lamba, 2003)

Direct catalogue retailing:

With the rise of dual income families and people having less time to spend in stores direct

catalogue retailing are growing at a much faster pace. (A.J.Lamba ,2003)

Web stores:

Throughout the world virtual stores created on the internet are becoming popular because of

their accessibility to customers 24 hours a day and 7 days of the week. These stores offer

tremendous convenience to the customers. (A.J.Lamba, 2003)

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2.2.5. Leading retailers in Pune

Department stores:

Shoppers’ stop:

K.Rahejacorp’s ShoppersStop is a leader in the Indian Retail Sector and one of the pioneers in

setting up large format department stores chain in India. It offers customers wide assortment

of brands ranging across apparel, cosmetics, perfumes, artificial and fine jewellery, handbags,

footwear, personal accessories such as sunglasses and watches, kidswear and much more. The

shoppers’ stop.has 5 outlets in Pune city. At present the stores are operational at Nucleus mall,

Inorbit mall, Kumar Pacific, Godrej Eternia and Koregaon park plaza. Cosmetics categories

like make-up, skin care, hair care and men’s care ,fragrances are available in these outlets.

Well-known brands like Chambor, Lakme, L,Oreal, Revlon, Maybelline – , and in fragrances

(perfumes and deodorants,) Adidas, Aramis, BVLGARI, David Bechham, Calvin klein,

Davidoff, Dkny, Dunhill, Estee Lauder, Fendi, Ferragamo, Giorgio Armani, Givenchy, Guess,

Lady Gaga, Playboy, Police, Nike, Ralph Lauren, Reebok, Roberto Cavalli, Tommy Hilfiger

,these brands are available.

Pune Central:

Pune central department stores Kishore Biyani lead Future group are top players in retailing.

Pune central at Bund garden road, Shivajinagar ,Amanora park town center are quite popular

among shoppers.

Lifestyle:

Lifestyle stores at Bund Garden road and Inorbit mall are department stores of Lifestyle

international pvt.ltd. Dubai based Landmark group.

Westside:

Westside stores belong to Tata group and at present have three stores in Pune at SGS Kakde

mall, Kakde one center port, phoenix market city. Westside stores sell wide variety of

cosmetics brands like African Forests, Max Factor, Bourjois Paris, Maybelline (New York),

Revlon, L’Oreal,Chambor Geneva and recently launched bath and body range.

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Supermarkets:

Easyday: Bharati Retail wholly owned subsidiary of Bharati enterprises, one of India’s

leading business groups operates neighborhood stores called Easyday, compact hypermarket

stores called Easyday Market and hypermarket called Easyday Hyper. These stores provide

consumers a wide variety of quality products at everyday low prices. In Pune Easyday store at

Abhiruchi mall provides wide assortment of goods including personal care products,

stationary, household articles, hosiery items as well as daily need groceries, including staples,

processed foods, bakery and dairy products, meat and poultry and fresh produce.

Dorabjee’s:

Dorabjee’s supermarket in Pune Camp area is quite popular with localites of the area. The

store provides wide variety of international and local brands in personal care,household

articles,daily need groceries,processed foods, bakery and dairy products, meat and poultry and

fresh produce.

More:

In May ,2007 Aditya Birla Retail launched its first supermarket, More. There are several

More supermarkets in Pune city catering customer needs in categories like fresh fruits &

vegetables, groceries, personal care, home care, general merchandise and a basic range of

apparels.

Hypermarkets:

Big Bazaar: Big Bazaar is the largest hypermarket chain in India run by Future group. It offers

wide range of merchandise including fashion and apparels, food products, personal care

products, general merchandise, furniture, electronics, books, fast food, and leisure and

entertainment segments.

Hypercity:

Hypercity Retail Ltd.founded in 2006, by K. Raheja Corp Group a leader in Indian Retail

sector. According to the company the big store offers big savings in food and grocery, health

and beauty, furniture, fashion ,electronics, toys, sports equipment’s and other private brands.

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Spar Hypermarket:

In India spar hypermarket and supermarkets are run by license agreement between the

Landmark group’s Max hypermarkets India Pvt. Ltd., and Spar international.Shoppers can

select from a wide variety of quality products in categories ranging from grocery, fruit and

vegetables, bakery, dairy, take away foods, meat, poultry and fish, wine, beer and spirits,

home textiles, personal care, crockery, utensils and kitchen appliances, electronics and IT

accessories and more.

Specialty retailers:

New U stores:

New U stores are inviting and interactive beauty and lifestyle retail stores operated by H&B

Stores Ltd, a wholly owned subsidiary of Dabur India Ltd. This chain has stores across India

and offers international and national personal care products under one roof. As of now there

are 3 outlets of New U stores in Pune at locations like Inorbit mall, Phoenix market city and

Megamart the company offers categories like color cosmetics, fragrances, skin care, personal

care, men's grooming, beauty & fashion accessories and much more. Brands like Ponds,

Lakme, Daburuveda, L’Oreal Paris , Neutrogena, Gillette ,Revlon, Chambor, Maybelline,

Olay, Garnier, Fem, Vaseline, Vatika, Colorbar USA, Deborah Milano, Philips, Nivea, Vichy

etc. are available in the stores. Apart from providing best deals New U offers several

exclusive benefits such as Makeover Marathons and events like "Maybelline Gals in the

City". To offer complete shopper experience the stores other customer benefits also include a

unique, rewarding & card-less Customer Loyalty Program (Advantage U) which is based

solely on the mobile number of a customer. New U – won “Most Admired New Retail

Launch of the year” at the fifth edition of Images Retail Awards (IRA) during India Retail

Forum 2008.

FACES cosmetics:

This Canadian company headquartered in Toronto began operations in India in the year 2009

and has rapidly expanded to over 35 cities across India. The company has presence in North

America, Europe and Asia. In Pune there are four exclusive outlets of FACES cosmetics at

Inorbit mall, Phoenix market city,Amanora park town center, and Kumar Pacific Mall. Skin

care cosmetics like cleanser, Moisturizers, toner, masks and scrubs, specialists and

antiagingetc.and make up cosmetics for lips, eyes, face, special effects etc. and personal care

accessories are available in company stores. For all looks those women consumers want right

from casual to professional to glamorous FACES has got wide assortments of shades, textures

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and designs of cosmetics. Recently launched SILK range is a luxurious premium international

make up range.

M.A.C.-Make- up Art-Cosmetics:

M.A.C.Cosmetics was founded in Canada by Frank Toskan and Frank Angelo in 1984.With

its credo all ages, all races, all sexes the company reflects unique appreciation of

individuality. Initially the company’s products were designed specifically for Professional

make-up artists, and now through company outlets they are available for consumers

worldwide. In India it has presence in all major cities including Pune at Koregaon Park Plaza.

The company has exclusive products ranging from make-up and skincare cosmetics. Because

of its world famous brand name lot of foreigners can be seen visiting the Pune store.

The Body Shop:

“I just want The Body Shop to be the best, most breathlessly exciting company – and one that

changes the way business is carried out. That is my vision.”

Dame Anita Roddick, Human Rights Activist, Founder of The Body Shop. The company was

founded byDame Anita Roddick, in the UK in 1976, now has over 2,400 stores in 61

countries, with a range of over 1,200 products. The company has cosmetics in categories like

Bath and body, skin care, make up ,hair, fragrance, men’s and other personal care accessories

.In Pune the company has outlets in SGS Kakde mall, Amanora park town center, Inorbit

mall, Phoenix market city are

The body shop company is well known world over for its products containing natural

ingredients and against testing (animal cruelty free).In the year 2006 L’Oreal acquired The

Body shop .

Forest essentials:

Forest essentials was founded in India in the year 2000. Products are prepared by the

company using traditional Ayurvedic recipes and ingredients collected from Himalayan

forests. The company believes in holistic approach in beauty care the way mentioned in

Ayurveda. It has product lines based on the concept of three faces of beauty Vata, Pitta, and

Kapha.In Pune forest essentials has two stores each in Koregaon park plaza and Amanora

park town center in Hadapsar. The company offers personalized consultation to avoid present

and future skin problems. The stores offer facial care, body care, hair care, wellness and many

more cosmetics products and fragrances. Forest essentials product ingredients like naturally

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distilled pure essential oils, pure cold pressed, organically grown vegetable oils and plant

extracts make them unique in offering cosmetics formulations.

Clinique:

Clinique is owned by Estee Lauder Corporation. Founded in 1968 the company headquarters

is at New York. Evelyn Lauder daughter in law of Estee Lauder created and developed

Clinique brand name and product lines with the help of Carol Phillips beauty editor and Dr.

Orentreich the dermatologist. Clinique brand is dermatologist-developed cosmetics brand and

all products of this company are allergy tested and 100% fragrance free. Clinique has got

presence in make-up, skin care and fragrances categories. In Clinique stores cosmetics are

available to suite each skin color and skin type. Koregaon park plaza houses flagship store of

Clinique in Pune.

Colorbar:

Colorbar cosmetics is one of the leading cosmetics brands in India. It offers customers wide

assortment of cosmetics for lips, face, nails and eyes. The brand personality reflects the

individuality of the Colorbar woman, who is independent, intelligent, creative and vibrant.

L’occitane En Provence:

L’occitane offers high quality beauty products and fragrances developed following the

principles of phytotherapy and aromatherapy. According to the company using L’occitane

product is always a moment of well-being and sensory delight. A small company started by

Olivier Baussanin Provence, southeastern France, has gained strong international presence in

health and beauty market.

Parcos:

Parcos, the retail format of Intercraft is the destination store for fragrances, cosmetics and

skincare in India offers international shopping experience to the Indian consumers. Along

with beautiful ambience Parcos presents quality service and wide assortment of cosmetics.