The Columbus, Ohio-based retailer is pivoting to a “consumer-first system” technique centred round upgraded formulations, extra disciplined advertising and marketing and fewer promotions.
The reset issues as India is rising as one of many firm’s fastest-growing and best-performing markets and can be turning into a testing floor for the way the model evolves its retail mannequin. India now ranks amongst Tub & Physique Works’ high 5 worldwide markets by progress.
“We’re seeing sturdy engagement throughout shops (in India), digital marketplaces and even fast commerce, which provides us confidence as we evolve the model and introduce extra innovation,” mentioned Tony Garrison, world vp at Tub & Physique Works, in an interview with Mint.
The perfume maker entered India in 2018 in partnership with Dubai-based Attire Group and has since expanded to about 50 shops throughout main metros, whereas additionally constructing an internet presence by means of platforms similar to Nykaa, Myntra and Amazon.
Attire Group brings over 80 world manufacturers to India, together with Victoria’s Secret, Charles & Keith, Aldo, Crocs, Tim Hortons.
“We’re studying so much from how the Indian shopper outlets throughout platforms, particularly the pace and comfort expectations,” he mentioned. “It’s serving to us assume in a different way about assortment, pack sizes and the way we present up digitally.”
Whilst discretionary spending softened, the model’s franchise companion, Attire Group, delivered double-digit gross sales progress in India and excessive single-digit comparable-store positive aspects in FY25. It reported a 26% year-on-year soar in FY25 income to ₹1,118 crore and a internet revenue of ₹20.5 crore, reversing a loss within the earlier yr.
Globally, Tub & Physique Works’ earnings replicate a smooth shopper demand in addition to margin pressures. Its income declined 1% to $1.59 billion within the third quarter of FY25, whereas internet revenue fell 27% year-on-year to $77 million. The corporate has three markets in income contribution – US, Canada and Worldwide.
Reviving the perfume engine
Whereas legacy scents similar to Japanese Cherry Blossom, Champagne Toast and Thousand Needs stay world blockbusters, the corporate admits it hasn’t produced sufficient new hits at the same scale lately.
“Japanese Cherry Blossom is a $250 million perfume,” Garrison mentioned. “I believe we haven’t accomplished the very best job of maintaining with a number of the perfume tendencies. We haven’t accomplished a number of innovation, and that’s what you’re going to see this yr. It is a massive change yr for us.”
The corporate plans to raise its home-fragrance portfolio, bringing in additional premium candle collections, gift-ready packaging and deeper, extra subtle scent profiles.
The broader objective is to encourage customers to commerce up throughout the model somewhat than look ahead to markdowns. “We would like clients to see the worth within the product itself, the perfume high quality, the substances, the expertise, not simply the promotion,” Garrison mentioned.
Tub & Physique Works additionally plans to introduce upgraded body-care strains in India, with a stronger give attention to substances and dermatology-led claims.
New retail codecs
India can be getting used as a take a look at marketplace for new retail codecs. Later this yr, the corporate and Attire Group plan to pilot a brand new, smaller “neighbourhood retailer” format of roughly 500 sq. toes in choose non-metro markets.
These shops will focus closely on core body-care strains and hero fragrances, whereas making a extra discovery-led surroundings for first-time customers. If profitable, the format may inform retailer methods in different components of the world.
India can be rising as a key market in testing how far that premiumisation can go. Regardless of broader warning in discretionary spending, Garrison mentioned the corporate has not seen a slowdown domestically.
“India has truly been certainly one of our strongest markets within the post-Covid interval,” he mentioned. “Even when shoppers are cautious, they nonetheless spend on small luxuries that make them really feel good.” That dynamic positions Tub & Physique Works squarely within the “inexpensive indulgence” candy spot, usually benefiting when customers cut back from higher-priced magnificence or luxurious purchases.
Macroeconomic and coverage elements may additional help the enterprise, he added. A stronger rupee helps franchise companion Attire Group handle import prices extra successfully, whereas a possible commerce settlement between India and key world markets may ease regulatory processes and pace up shipments. Quicker imports translate into higher stock turns and brisker product on cabinets, a crucial benefit in a class pushed by novelty and seasonal drops.
What consultants say
Retail consultants warning that Tub & Physique Works’ reset in India gained’t be with out challenges, particularly after years of promotion-led progress.
“It’s a self-inflicted wound,” mentioned Devangshu Dutta, founding father of Third Eyesight, a consulting agency. “Manufacturers pitch excessive, and when volumes don’t come by means of, they inevitably fall again on discounting. Indian clients can look ahead to costs to be proper, which ends up in a really giant variety of gross sales occurring on the finish of the season.”
Dutta mentioned that the private care market has change into intensely crowded, with a “humongous quantity of product variety”, making model readability crucial.
“For those who’re not clear about what you’re as a model, you simply change into one other model or a commodity,” Dutta mentioned, noting that Indian shoppers are actually much more conscious of world worth propositions.
Whereas Tub & Physique Works is leaning into fast commerce and smaller neighbourhood shops, Dutta cautioned that premium manufacturers nonetheless want bigger codecs to construct experience-led differentiation. “Fast commerce is a really curious surroundings. Clients are in a in search of mode, not a shopping mode, so model discovery is a big problem,” he mentioned. “Neighbourhood shops will be spokes, however you continue to want the hub -the giant retailer to speak the model expertise.
Key Takeaways
- Tub & Physique Works is shifting to a ‘consumer-first system’ to reinforce model engagement.
- The reset issues as India is rising as one of many firm’s fastest-growing and best-performing markets
- Regardless of competitors, India presents a robust progress alternative for Tub & Physique Works, pushed by shopper demand for inexpensive luxurious.
- A stronger rupee helps franchise companion Attire Group handle import prices extra successfully
Race intensifies
The turnaround plan comes at a time when Tub & Physique Works rivals, together with The Physique Store and Forest Necessities, are additionally bracing to get a share of the Indian shopper’s pockets.
The Physique Store, plans to attain ₹1,100 crore in income in India throughout the subsequent three to 5 years, buoyed by the strategic backing of Auréa Group, which acquired the model final yr.
India’s perfume market was valued at $1.0 billion in 2024 and is alleged to develop at a 13.9% CAGR to $3.23 billion by 2033, based on market analysis agency IIMARC Group.