Why Dabur New U is the Best Cosmetics Store Franchise in India 2024

on Dec 22, 2023 | 5998 views

Written By: Yukta Palekar

The online market for cosmetic products is also growing rapidly. This is an excellent opportunity to invest in a Cosmetics Store Franchise such as Dabur New U.

The Indian cosmetics products market is estimated at USD 1.35 billion in 2023 and is projected to reach USD 2.27 million by 2028, with a CAGR of 10.91%. The market growth is attributed to increasing purchasing power, consumer expenditure, and the influence of social media platforms.

Consumers discover products and brands through advertisements, product reviews, celebrity endorsements, and expert blog posts. NewU, a H & B Stores Limited-operated beauty destination, offers a wide range of makeup, skin care, hair care, fragrances, and personal grooming products in over 100 stores across 36 cities.

About Dabur New U Franchise Opportunity in India 2024

NewU is a one-stop beauty destination offering a wide range of cosmetics, skincare, haircare, personal grooming, and fragrances from renowned brands. Operated by H & B Stores Limited, a subsidiary of Dabur India Ltd, NewU aims to make your shopping experience enjoyable by offering exclusive deals.

With over 100 stores across India covering 36 cities, NewU serves both offline and online customers.

The company's focus on health and beauty ensures a sumptuous blend of products for customers. NewU also provides personalized makeover guidance and delivery services. With a strong presence in the retail sector, NewU serves both offline and online customers.

NewU ships across the country using reliable courier companies, making customers not just customers but also part of the NewU family. By shopping with NewU, you become part of the NewU family and contribute to a more exciting shopping experience.

Also Read: How the NewU has major expansion plans across the country.

The Franchise Journey with Dabur New U

New U, a beauty retail expert from the House of Dabur, has opened its twin flagship South Delhi outlets in Khan Market and Defence Colony. The stores, spread over 1,200 sq. ft, offer the largest range of beauty care products from across the globe under a single roof.

Dabur India Ltd Group Director Mr. P. D. Narang inaugurated the new stores, stating that New U is a place where women and girls of all ages have fun shopping because it offers all the beauty products they love. The New U network currently has 44 stores across North and South India, with plans to add another 30 outlets over the next year to further expand its footprint in the specialized beauty retail market in India.

The stores will offer a wide selection of brands in categories such as cosmetics, skin care, hair care, fragrances, herbal care, beauty implements & accessories, gifts & confectionery, and men & children’s toiletries. New U has also brought premium international beauty brands like Beauty Formulas and QVS for the first time to Indian consumers.

Revolutionizing Indian Beauty: The Surge of Cruelty-Free, Clean, and Online-Friendly Cosmetics

Cruelty-Free and Vegan Boom:

  • Significant growth in the cruelty-free and vegan beauty market in India.
  • Manufacturers embracing natural and environmentally friendly ingredients.

Rise of 'Green Cosmetics':

  • 'Green cosmetics' trend driving demand for sustainable and clean beauty products.
  • Dr. PAWPAW brand from the UK offering multi-tasking lip and skin care products on Purplle.
  • Emphasis on natural and eco-friendly ingredients in product formulations.

Regulatory Shift:

  • Indian Ministry of Health and Family Welfare imposing a cosmetic testing ban.
  • Impact on cosmetic industry practices, aligning with existing Drugs and Cosmetics Rules.
  • Emphasis on ethical practices and cruelty-free testing methods.

Gen Z Influence:

  • Gen Z reshaping the colour cosmetics market with a preference for eco-friendly and clean products.
  • Anticipated increase in demand for natural, organic, and clean colour cosmetic items.
  • Changing consumer preferences influencing product innovation and marketing strategies.

Online Retail Dominance:

  • Online retail playing a pivotal role in the Indian cosmetics market.
  • Brands leveraging e-commerce for a wider product portfolio reach.
  • Increased product visibility in both rural and urban regions of India.

Celebrity and Influencer Partnerships:

  • Brands collaborating with Indian celebrities and influencers for targeted marketing.
  • Just Herbs partnering with Bollywood celebrity Athiya Shetty to endorse natural makeup products.
  • Influencer endorsements influencing purchasing decisions, particularly among the youth.

Convenience of Online Shopping:

  • Growing momentum of online shopping providing convenience to consumers.
  • 24/7 accessibility enabling browsing and purchasing from the comfort of homes.
  • Increased reach and accessibility in both rural and urban areas of India.

Product Diversification:

  • Brands diversifying product offerings to cater to changing consumer preferences.
  • Introduction of unique products like ghee-based lipsticks, foundations, and lip gloss.
  • Continuous innovation to stay relevant in the evolving beauty market.

The cosmetics landscape in India is undergoing a transformative shift, driven by consumer preferences for ethical, sustainable, and online-friendly beauty products, with Gen Z and influential endorsements playing a significant role in shaping trends.

Cost to start Dabur New U franchise in India

Store Profile:

  • Multi-brand cosmetic store in Pan India.
  • Offers a wide range of makeup, skincare, hair care, fragrances, and personal grooming products.

Product Range:

  • Carries products from renowned brands.
  • Emphasis on quality and variety in cosmetics and beauty items.

Business Model:

  • Operates on a retail franchise model.
  • 5-year agreement term for franchisees.

Expansion and Presence:

  • Franchising started in 2014.
  • Currently operates 140 units across India.

Investment Details:

  • Required investment ranges from 20 Lac to 30 Lac.

Franchise Details:

  • Franchise opportunity available since 2014.
  • No specific qualifications required for potential franchisees.

Establishment and History:

  • Business initiated in 2012.
  • Franchising commenced in 2014.

Exclusive Deals:

  • Enhances attractiveness and competitiveness.

Inclusive Opportunity:

  • No specific qualifications required.
  • Welcomes a diverse range of individuals to become franchisees.

Long-Term Commitment:

  • Franchise agreement spans 5 years.
  • Offers stability for franchisees.

Diverse Product Categories:

  • Caters to a broad customer base with varied beauty needs.

Indian Cosmetics Market Dynamics

Market Size and Projection:

  • Estimated at USD 1.35 billion in 2023, with a projected prediction of USD 2.27 billion by 2028, and a CAGR of 10.91% between 2023 and 2028.

Driving Factors for Growth:

  • Increasing purchasing power and consumer expenditure.
  • Transformation in the lifestyle of millennials and the younger generation.

Influence of social media:

  • Consumers discover products through social media.
  • Platforms like Instagram and Facebook play a key role.
  • Consideration of product reviews, recommendations, celebrity endorsements, and expert blog posts.

Rapid Growth in Online Market:

  • Significant growth in the online market for cosmetics.
  • Increasing demand for luxury cosmetics among millennials and Gen Z consumers.

Cruelty-Free and Vegan Beauty Trend:

  • Global and Indian markets witness an explosion in cruelty-free and vegan beauty.
  • Manufacturers opting for natural and environmentally friendly ingredients.

Green Cosmetics Trend:

  • Push for sustainable and clean beauty products.
  • Focus on eco-friendly, natural, and organic ingredients.

Clean Beauty Demand:

  • Anticipation of rising demand for eco-friendly, natural, and clean colour cosmetic products.
  • Driven by Gen Z's experimentation and planet-friendly approach.

Online Retailing Impact:

  • Online retailing crucial for the sustenance of the cosmetics market.
  • Enables a wide range of product portfolios and brand identity promotion.
  • Facilitates product launches and influences consumers.

Celebrity and Influencer Endorsements:

  • Brands targeting young consumers through endorsements.
  • Collaboration with Indian celebrities and influencers for greater market reach.

Online Shopping Momentum:

  • Growing preference for online shopping.
  • Provides convenience, avoids crowded stores, and enhances product visibility in rural and urban regions.

Brand Strategies:

  • Brands leveraging online platforms to cultivate identity.
  • Strategic use of online presence to promote products and influence consumer choices.

Conclusion

NewU is a comprehensive beauty shop offering a wide range of cosmetics, skincare, haircare, personal grooming, and fragrances. It offers unique deals to make shopping enjoyable.

FranchiseBazar provides information on starting a cosmetic franchise in India, allowing potential franchisees to explore the franchise business in their area.

FAQs

Q.1. What exactly is newu?

newu is a beauty-focused retail enterprise that provides clients with the most diverse product selection in the beauty goods market, including exclusive foreign brands such as SEN from Turkey and Beauty Formulas from the United Kingdom. The stores also carry the most recent branded colour cosmetics, perfumes, skin and face care, stylish accessories, and jewellery.

Q.2. Dabur had formerly operated through company-owned stores. What prompted the corporation to pursue the franchise model?

Our newu shops are all company-leased. As we strive to increase our retail base in north India, we are considering franchising. However, before embarking on the franchise road, we must first establish that we have a significant market presence, which we will do by the end of the current fiscal year.

Q.3. What type of training and assistance will a franchisee receive?

We will provide training materials on product knowledge, merchandising, visual merchandising, marketing assistance, operational efficiency, and so forth.

Q.4. Do you have any recommendations for young entrepreneurs?

Maintain your ears to the ground and grasp what is going on in the industry and what the consumer requires. Aside from that, I believe that business ethics and core discipline are the keys to success in any company effort.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.

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