Recode Studios Ltd. IPO

We are a beauty and personal care (“BPC”) company operating in the beauty, cosmetics and personal care segment in India. Our business primarily involves the branding, procurement and distribution of beauty and personal care products under the “Recode” brand. We operate ... through an omnichannel distribution network, which comprises Company-Owned Company-Operated (“COCO”) retail stores, Franchisee-Owned Franchisee-Operated (“FOFO”) stores, third-party e-commerce platforms and our proprietary website and mobile application. We offer a diversified portfolio of products across make-up, skincare, body care and beauty accessories, catering to a wide range of consumer preferences and usage occasions. As of the date of this RHP, our Company offers approximately 350+ Stock Keeping Units (“SKUs”) across multiple categories and price points. Our product portfolio includes face make-up, eye make-up, lip makeup, face and body care products and beauty accessories. Our omnichannel distribution model enables us to distribute our products through both offline and online channels, allowing customers to purchase our products through physical retail outlets as well as digital platforms. Offline distribution is carried out through a combination of COCO stores, which are directly operated by the Company and FOFO stores, which are operated by independent franchise partners. Online distribution is undertaken through our own website (shop.recodestudios.com) and mobile application (Recode Studios), as well as through third-party e-commerce marketplaces such as Amazon, Nykaa, Myntra and Flipkart. Read more

GLOBAL COSMETICS INDUSTRY
The global cosmetics industry continues to witness robust growth driven by increasing consumer focus on personal care, rising disposable incomes, rapid urbanization, and expanding demand from emerging economies. Growing awareness of beauty, ... wellness, and grooming among both men and women—supported by digital marketing and influencer-led consumption—is reshaping the industry landscape. According to industry estimates, the global cosmetics market was valued at USD 384.64 billion in CY 2024 and is projected to reach USD 645.28 billion by CY 2034, registering a CAGR of 5.31%. Growth will remain innovation-driven, focusing on natural and organic formulations, sustainable packaging, clean beauty, and dermatology-backed cosmetic solutions, alongside strengthening e-commerce and supply chain infrastructure. Major growth drivers of the cosmetics industry include shifting consumer preferences toward premium and luxury products, increasing penetration of online retail channels, and rising adoption of natural and eco-friendly products. Furthermore, the industry is witnessing strong momentum from skincare and personal care categories, which offset price pressures in traditional segments such as mass-market make-up. However, rising competition, regulatory compliance, and supply chain sustainability will remain critical factors shaping industry dynamics over the coming years. INDIAN COSMETICS INDUSTRY The Indian cosmetics industry is among the fastest-growing consumer sectors, supported by strong domestic demand, rising disposable incomes, urbanization, and increasing beauty and wellness awareness. India ranks among the leading emerging markets globally, recognized for its herbal, natural, and ayurvedic formulations, which are gaining international acceptance. The country hosts more than 5,000 domestic companies along with global brands operating through subsidiaries, partnerships, and joint ventures. The industry is gradually transitioning from volume-based growth to value- and innovation-led expansion, with increasing preference for premium, sustainable, and high-performance products. Segments such as skincare and haircare continue to dominate, while colour cosmetics and men’s grooming represent emerging growth areas. The market’s evolution is driven by digital adoption, e-commerce expansion, and a young consumer base that values personalization, efficacy, and transparency. Global and domestic players are investing in India’s digital-first and D2C beauty ecosystem, leveraging the country’s low-cost manufacturing base and rich biodiversity. Rural and semi-urban areas are also witnessing growing adoption of affordable brands, expanding the overall consumer base. With supportive government initiatives, a thriving startup ecosystem, and increasing export potential of “Made in India” products, the industry is well-positioned for sustained growth and global competitiveness. Gen Z Share in Beauty & Personal care Gen Z consumption behaviour in India, the Beauty & Personal Care (BPC) segment constitutes approximately 44% of all consumers spend driven by Gen Z. This category encompasses products such as makeup, skincare, personal grooming, and related items. Implications for the Industry: - Disproportionate Influence: Gen Z’s spending share in this segment is considerably higher than their proportion of the total population, making them a pivotal consumer group. - Strategic Targeting Opportunity: Beauty and personal care brands stand to gain by specifically targeting Gen Z consumers, as they represent not just a niche segment but a major driver of revenue growth. - Trend Shaping: The preferences of Gen Z are shaping product development, marketing strategies, packaging, and other brand initiatives. Key areas of influence include social media-driven trends, clean beauty formulations, personalized products, and experiential marketing. Read more