Are beauty brands overshadowed by their ambassadors?

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

India's Rs 3,300 crore beauty and wellness market is heading for a new look. CNBC-TV18 reports on whether the market is mature enough to grow beyond the personalities associated with it?

 

From Bhatinda to Belapur, the beauty business looks good and entrepreneurs are looking beyond their enterprises. Fitness and beauty chain, Vandana Luthra's Curls and Curves, VLCC, is doing due diligence to acquire a fitness chain and a domestic FMCG company in the herbal space.

 

In July, hair stylist Javed Habib sold 30% in his company to a domestic private equity player. In 2008, he hopes to raise Rs 100 crore from the market so that he can boost the number of his salons to 500 from 80.

 

Chairman, Jawed Habib Hair and Beauty, Javed Habib said, "I am planning to go to more small towns, there's lots of business there, I have just started a salon in Bhatinda, it's doing so well."

 

Sources say that domestic FMCG players have their eyes on beautician Shehnaz Hussain's business, which has over 700 franchised salons in 140 countries, and 350 products. But Hussain's personality overshadows the brand, that's why VLCC has distanced its founder Luthra from the brand.

 

Chairperson, VLCC, Vandana Luthra says, "I am handling the advisory committee, I advise them and give my vision where to take it, but it's the professionals who are taking it forward."

 

Many global brands face a similar problem; Chanel outlives its founder, Coco Chanel, but brand Armani, which has moved past designer suits to cafes has come to sharp criticism for not planning for Girogio Armani. Experts are divided on whether the Indian beauty and wellness market is mature enough to outlive the personality that built them.