An international cosmetics range which started domestic manufacturing just one year ago has already begun exporting locally made products to Bangladesh and Pakistan.
In addition, this premium colour cosmetics brand, Revlon, along with its half-priced mass-market version, Streetwear, also currently claims a presence in about 800 outlets island-wide, 60 of which are dedicated, merchandised counters, and because of the company's new local manufacturing facility.
Its estimated turnover capacity of US$ 10 million, it plans to further raise this number to 100 counters by year's end and 300 counters in two years. Modi Revlon Chairman, President and Chief Executive, Umesh Modi, who is tasked with the success of Revlon's business across South Asia, made these comments in an interview this week with the Sunday Times FT during a visit to Colombo.
While his company's hopes for Sri Lanka apparently rely on Euromonitor 2009 data indicating Sri Lanka’s colour cosmetics market’s worth at US$ 12.1 million in 2008 (or 8% of a larger 2008 Cosmetics & Toiletries market valued at US$ 154 million with a growth expectation of 10%), Mr. Modi’s own experience seems to suggest that Sri Lanka's potential is better than that of India's in the 1990's, a boom period for the country, specially since Sri Lanka is further aided by higher levels of per capita income, education, etc.
Further, according to Mr. Modi, while most colour cosmetics brands available locally are still imported, Revlon took a decision, more than a year ago, to set up a manufacturing facility in Sri Lanka even with the local chemical industry being inadequate to support all production needs. Indicating that, while most chemical raw materials for production had to be imported, packaging sourced locally was preferred, Mr. Modi also promises that Revlon in Sri Lanka is still at a very early stage, having just started a year ago; with all efforts currently expended on typical startup activities, such as new hiring (the company currently has a 300 staff strength), putting together the right sales team and building an even stronger distribution network, all geared towards future growth.
Meanwhile, according Marketing Director Deepak Bhandari, Sri Lanka was a good opportunity for Revlon, which is the market leader in premium colour cosmetics in India with a 74% market share of a sector that accounts for 6% of an estimated US$200 million overall cosmetics and toiletries industry as well as a leader in the mass/premium cosmetics space with a combined 32% share for both Revlon and its budget Streetwear brand.
This stems from the fact that no brands appear to be as yet “entrenched” in the local market, thus allowing Revlon to try for a "first mover advantage".
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