Bath & Body Works has a new formula for growth, bets on India

Core Insights - Bath & Body Works Inc. is implementing a "consumer-first formula" strategy to revive growth after years of discounting and weak product innovation [1][18] - India is becoming one of the fastest-growing markets for Bath & Body Works, ranking among its top five international markets by growth [2][18] - The company is focusing on upgraded formulations, disciplined marketing, and fewer promotions to enhance brand engagement [1][18] Market Performance - Bath & Body Works has expanded to about 50 stores in India since entering the market in 2018, partnering with Apparel Group [4] - Apparel Group reported a 26% year-on-year revenue increase to ₹1,118 crore in FY25, with a net profit of ₹20.5 crore, reversing a previous loss [5] - Globally, the company's revenue declined 1% to $1.59 billion in Q3 FY25, with net income falling 27% year-on-year to $77 million [6] Product Strategy - The company acknowledges a lack of new fragrance hits and plans to elevate its home-fragrance portfolio with premium collections and sophisticated scent profiles [7][8] - Bath & Body Works aims to encourage customers to see value in product quality rather than relying on promotions [8] Retail Innovations - India will serve as a test market for a new smaller "neighbourhood store" format, focusing on core body-care lines and creating a discovery-led environment [10] - The company is leveraging quick commerce and smaller stores while recognizing the need for larger formats to enhance brand experience [16] Competitive Landscape - The turnaround plan comes amid increasing competition from brands like The Body Shop and Forest Essentials, which are also targeting Indian consumers [17] - The Indian fragrance market is projected to grow from $1.0 billion in 2024 to $3.23 billion by 2033, with a CAGR of 13.9% [19]