Mumbai: Nivea India Pvt. Ltd is considering opening spas in India as part of its effort to reach Rs600 crore in revenues by 2010, even as Indians start spending more on grooming and fitness.
The company, the Indian subsidiary of Beiersdorf AG, is looking at whether a “Nive House” spa will work in India. The parent has such spas in Germany, Dubai, and cities across Europe; customers go through beauty and hairstyling treatments, and massages using a variety of Nivea products.
“Nivea Houses are cropping up in several parts of the world as a marketing tool. India is under consideration, too, and could very well be the next,” said Kai Boris Bendix, managing director, Nivea India. “Though we are not an Ayurvedic brand, India could fit very nicely here and we can provide Ayurvedic massages too,” he added.
Nivea India closed its first quarter ending March with revenues of around Rs50 crore.
Nivea India claimed that its parent has studied India’s Rs2,500 crore by revenues skincare and cosmetics market and that the spa would be launched once Nivea establishes itself here. Nivea plans to expand its portfolio of skincare products and cosmetics this year and will introduce as many as 25-30 products from its global portfolio. The company’s Indian portfolio has around 44 products at the end of 2007.
In an effort to establish a distribution network of its own and expand reach, Nivea has ended its alliance with JL Morison Ltd, a licencee and national distributor for some channels for the company here.
Currently, 20% of the products Nivea sells in the Indian market are manufactured locally by third party manufacturers, while the rest are imported. The company said it is also considering setting up a manufacturing facility in India to support growth in sales and reduce dependance on imports. However, it added that this wouldn’t happen immediately.
Over the past few years, several companies have established spas in India. However, most of these are stand-alone spas and several are attached to 5-star hotels. For instance, New Delhi-based IHHR Hospitality Pvt. Ltd, runs India’s first branded spa, Ananda in the Himalayas, and Mumbai-based luxury spa Rudra. Lakme Lever (a division of Hindustan Unilever Ltd) and Marico Ltd (under Kaya skin clinic), offers wellness’ products and services in India through salons. However, Bendix said that Nivea’s spas would be different from these.
“We want Nivea to be a mass premium brand and Nivea House is not a salon concept similar to Kaya. We will be doing it with a spa approach, which will even have a coffee shop as well as merchandising of our products and services,” he added.