Lush makes a splashy return to India tapping into the nation's booming luxury beauty market
UK cosmetics powerhouse Lush has made a significant return to the Indian market, nearly two decades after its initial exit. This strategic re-entry aims to capitalize on the nation's burgeoning luxury beauty sector, a senior executive confirmed to Reuters. The brand has forged a licensing partnership with Bengaluru-based Bilberry Brands, commencing with an online launch before embarking on a broader expansion into physical retail spaces across the country.
Lush's decision aligns with a broader trend among global beauty giants, including Estee Lauder and Japan's Shiseido, which are increasingly focusing on India as growth in developed markets experiences a slowdown. India's luxury beauty market presents a compelling opportunity, projected to quintuple to an impressive $4 billion by 2035. Lush co-founder Rowena Bird highlighted the transformative changes in retail and consumer awareness, attributing the increased receptiveness to Western brands to the significant rise in internet usage across India.
The expansion strategy is ambitious and clear-cut. In the initial 18 to 24 months following the launch, Lush and its partner, Bilberry Brands, plan to establish physical stores in major metropolitan areas such as New Delhi, Mumbai, and Bengaluru. Vishal Anand, founder of Bilberry Brands, indicated that preparations are already underway, with discussions having taken place with 25 top malls nationwide to secure prime retail locations.
Founded in 1995 and globally recognized for its innovative "bath bombs" – effervescent, scented spheres that dissolve in water – Lush maintains a substantial international presence. The company operates in over 50 countries, boasting more than 850 stores worldwide. For the fiscal year ending June 30, 2024, Lush reported a turnover of nearly 675 million pounds (approximately $887.36 million), marking a modest 5% decrease from the previous year.
This timely re-launch has also been facilitated by recent geopolitical developments. It closely follows a free-trade agreement signed in July between Britain and India. This pact is designed to significantly reduce tariffs on a wide array of goods, ranging from textiles and whisky to automobiles, and notably includes the phasing out of duties of up to 22% on UK cosmetics and toiletries. Regarding product sourcing for India, Rowena Bird confirmed that the majority of the 350-plus products will be imported from Lush's UK factory, with a small selection of "fresh" items, such as face masks, being produced locally using Indian ingredients.
