Perfume retailers are gradually increasing their production to offer wider choice to consumers, thereby increasing their sales The perfume industry has gradually made headway in the country by offering wider choice that has been able to draw consumer attention. Earlier perfumes were associated with women but are now popular among men too. According to a poll conducted by Retailing360, 100% of the respondents felt that with increasing demand for perfumes among Indian consumers, the perfume market has been rapidly expanding at the home turf.
Rohit Chadha, head - Consumer Products - Technopak Advisors in Gurgaon, while speaking to a Retailing360 correspondent says, “Last 2-3 years have witnessed increase in demand for perfumes in India. Existing consumers have increased average units owned from 2-3 units to over 4 units per head. Along with increase in consumption by existing customers, a key driver has also been growth in income of middle class families due to the increase in tax slabs. This is contributing to the rise in discretionary spending and perfumes form a part of this trend.”
 Strategies to improve sales
“Globalisation and adoption of latest technology have encouraged domestic perfume manufacturers to introduce a wide range of perfumes with improvement in the quality standard. Further, by keeping a track of consumer preference in both domestic and foreign markets, perfume manufacturers can improve their sales,” says Nitin Arora, director of Always Perfumes, a small-sized perfume manufacturer in Navghar, Maharashtra.
Globally, perfume makers are waking up to the fact that consumers will not purchase more than what they need. Small-sized packs now form a de facto part of the portfolio of many fragrance companies, especially 30ml travel packs, in the post–recession era.
With reduction in pack sizes, there is also a need to understand where the sweet spot in terms of pricing lies in India. Therefore, perfume brands should ensure that products are available at reasonable rates.
Another key driver leading to increased perfume penetration in India is improving distribution. Beyond the top 10-15 cities, availability of sufficient range of choice and brands is low. Therefore, perfume retailers should open more retail stores in metros and tier I cities in order to improve their sales.
Sabrina Mitchell |
