Shoppers Stop doubles down on luxury beauty gamble

MUMBAI: Shoppers Stop is betting big on lipstick and mascara. The Mumbai-based department store chain disclosed on 25 November that it has pumped an additional Rs 10 crore into Global SS Beauty Brands, its wholly-owned beauty subsidiary, bringing total investment in the venture to Rs 105 crore.

The infusion, completed through a rights issue of preference shares, marks the fourth tranche of funding since April when Shoppers Stop’s board approved investing up to Rs 50 crore in the beauty operation. The company has now exceeded that ceiling, signalling confidence in a subsidiary that has grown explosively—turnover surged from Rs 14 crore in FY 2022-23 to Rs 220 crore in FY 2024-25.

Global SS Beauty Brands operates speciality beauty stores and distributes cosmetics, positioning itself as the “partner-of-choice for leading international brands” in India’s luxury beauty market. The subsidiary is in expansion mode, using the fresh capital for new stores and working capital as it chases market share in a sector where affluent Indian consumers are increasingly trading up to premium products.

The timing is shrewd. India’s beauty and personal care market is booming, driven by rising incomes and social media-fuelled demand for international brands. Shoppers Stop, facing pressure in its core department store business, is hedging its bets by building out a dedicated beauty platform.

Whether Indians will buy enough Chanel and Dior to justify a Rs 105 crore wager remains to be seen. But Shoppers Stop is clearly convinced the future smells of expensive perfume.