Bath & Body Works sees India as future top-three global market

/ 3 min read
Summary

With 50 stores, double-digit growth and a digital-heavy customer base, Bath & Body Works is betting on smaller neighbourhood formats and deeper localisation to unlock India’s next 100 million consumers

 Tony Garrison, executive vice president, Bath & Body Works
Tony Garrison, executive vice president, Bath & Body Works | Credits: Sanjay Rawat 

For a brand that built its cult following on mall aisles scented with Japanese Cherry Blossom and Warm Vanilla Sugar, India still feels like early days for Bath & Body Works. Ten years in, 50 stores deep, the American fragrance and body care retailer is profitable, growing in double digits, and yet, by its own admission, just getting started.

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“There is tremendous opportunity in India,” said Tony Garrison, executive vice president at the company, during a recent visit. “If you think about our business in relation to the size of the market, we’re very small — which to me just says huge opportunity.”

India now sits firmly on the brand’s global growth map. Outside North America, Garrison believes India could rank among its top three markets — “if not the top” — over the next decade. The company, which clocks roughly $8 billion in global sales, has doubled its India business every five years so far. Now, it is aiming to accelerate that pace. “I think we’re at this precipice where we can maybe double it every three years,” he said.

A smaller store, a wider net

The next phase of growth will hinge on scale and format. Of the roughly 50 stores currently operating in India, most are large-format outlets in premium malls. But that model has limits. “There are probably maybe a hundred malls that you would say Bath & Body Works could successfully operate in,” Garrison said. “That’s great, I want to be in every one of those, but that’s finite.”

The answer: a neighbourhood store concept tailored specifically for India. At around 500 square feet, compared to the typical 2,000 sq ft mall store, these outlets will allow the brand to move beyond metros and into emerging markets. “It’s only going to be for India. We’ve never done it before,” he said. The first few are expected to open this fall, with plans to add about 70 stores over the next three to five years — nearly doubling the store count.

Digital as the growth engine

Even as it expands physically, India’s digital market may prove the bigger lever. The country already accounts for the highest share of digital sales for the brand globally, as a percentage of total revenue. “You have an incredible digital-savvy customer here,” Garrison noted.

Unlike in the US, where the company has so far sold only through its own website (with an Amazon debut on February 12), India has been a testing ground for marketplaces. The brand retails on Nykaa, Myntra and Amazon, and Garrison sees room to grow. “Why she shops on Nykaa is very different from why she shops on Myntra or our .in site. I need to tailor assortments better.”

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That could mean smaller sizes, targeted drops, or heroing newer products such as its lip oil line. It also means investing in what he calls “demand generation” — sharper photography, stronger video, influencer partnerships, and a planned celebrity-level co-creator to build an ecosystem around the brand.

Brand awareness remains the biggest unlock. Of an estimated 100 million consumers in its target price segment, Garrison believes the company may currently have around 1 million customers. “That gives me 99 million more people I need to reach,” he said.

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For now, India is delivering double-digit growth and positive same-store sales, making it one of the better-performing partners globally. The company operates in 45 countries but has consciously stayed out of China, citing its no-animal-testing policy.

As India’s retail infrastructure, talent base and digital ecosystem evolve, Garrison wants the brand to evolve with it. “We’ve been very successful replicating the US model,” he said. “Now it’s time for localisation. To be successful globally, you’ve got to localise — how you sell, how you distribute, where you show up.”

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Bath & Body Works is in their “transformational journey” this year and the ripple effects are expected to reach India as well. 

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