Modi Revlon to launch StreetWear, all set to take on Elle 18

Modi Revlon is also care
19 December 2002

StreetWear, targeted at the socio-economic class (SEC) A, A2 may be launched in the top 23 cities of India starting with Delhi, Mumbai and Chandigarh. In India Modi Revlon’s products were initially perceived as expensive.

About two years ago the company formulated the strategy of marketing smaller pack sizes at lower prices to push sales. Starting with the launch of its min nail enamel, the company extended the strategy to other products like lipsticks and perfumes.

The company claims the strategy has been very successful helping it to increase sales by almost 50 per cent. Modi Revlon claims to have an overall marketshare of 20-25 per cent in the domestic colour cosmetics market.

Modi Revlon’s decision to enter the teenage segment with an international brand could mean bad news for Lakme Lever’s Elle 18 brand as this is also aimed at the young and trendy teenage segment and is furthermore is the only organised brand in the segment.

Modi Revlon is at present beefing up its distribution network to be able to compete against the 65,000 outlets stocking Elle 18 and Lakme products. Modi Revlon’s network is about half of Lakme Lever’s. The colour cosmetics market is estimated at roughly Rs 300 crore, of which Lakme’s share is around 50 per cent.

The entire range is being manufactured at Modi Revlon’s wholly owned subsidiary in Assam — Kamakhya Cosmetics and Pharmaceuticals. Modi Revlon has been operating in India since 1994. It first rolled out its international range of colour cosmetics in September 1995. Modi Revlon is a 74:26 joint venture between Modi Mundi Pharma and Revlon of the US.