FRAGRANCES IN INDIA

Euromonitor International
September 2013

F RA GRA NCE S I N I NDI A P a s s p o r t I
E u r o mo n i t o r I n t e r n a t i o n a l
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 3
Table 1 Sales of Fragrances by Category: Value 2007-2012 .................................... 3
Table 2 Sales of Fragrances by Category: % Value Growth 2007-2012 ................... 3
Table 3 Fragrances NBO Company Shares by Value 2008-2012 ............................. 4
Table 4 Fragrances LBN Brand Shares by Value 2009-2012 ................................... 4
Table 5 Men's Premium Fragrances LBN Brand Shares by Value 2009-2012 .......... 5
Table 6 Women's Premium Fragrances LBN Brand Shares by Value 2009-
2012 ............................................................................................................. 6
Table 7 Forecast Sales of Fragrances by Category: Value 2012-2017 ..................... 6
Table 8 Forecast Sales of Fragrances by Category: % Value Growth 2012-
2017 ............................................................................................................. 6
Table 9 Retail Sales of Fragrances by Concentration 2007-2012 ............................. 7


F RA GRA NCE S I N I NDI A P a s s p o r t 1
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FRAGRANCES IN INDIA


HEADLINES
Fragrances increases by 25% in current value terms in 2012, to reach Rs11 billion
Premium fragrances continues to gain popularity in 2012
Premium women's fragrances records the fastest current value growth of 29% in 2012
Average unit prices continue to increase, along with the increased uptake of premium
fragrances
Although fragrances continues to be fragmented, Bulgari Parfums leads with a value share of
5% in 2012
Fragrances is expected to increase by a constant value CAGR of 13% in the forecast period,
to reach Rs19 billion by 2017


TRENDS
Changing lifestyles coupled with changing attitudes increasingly pushed consumers towards
premium fragrances. The trend was quite strong in urban areas, where the working population
(both men and women) spent willingly to stay well-groomed. Consumers (mainly in urban
areas) continued to buy perfumes which matched their styles and attitudes. Interestingly,
many consumers started to gift premium fragrances on special occasions, including birthdays
and weddings, which helped to give another push to sales of fragrances.
The current value growth in 2012 was faster than the review period CAGR, mainly due to the
strong uptake of premium fragrances by urban consumers. Interestingly, consumers in
second- and third-tier cities, the majority of whom used traditional perfumes, known as ittar,
switched to alcohol-based mass fragrances. In addition, many consumers in second-tier cities
started to buy premium fragrances, mainly from cities such as Delhi and Gurgaon during trips
to such metropolitan cities.
Premium womens fragrances saw the fastest current value growth of 29% in 2012. This
growth was due to the small base, coupled with an increasing number of women moving
towards premium fragrances. As women continued to become more financially independent,
their power to spend and choose increased significantly. With such independence, women
continued to spend on personal grooming, and bought premium fragrances, which were
considered synonymous with style in 2012.
Average unit prices of fragrances recorded a sharp increase in 2012. This was mainly due to
the strong uptake of premium fragrances by urban consumers. In addition, the prices of
premium and mass fragrances also witnessed a small rise as international companies
launched new fragrances which were priced higher than the exiting variants.
Premium brands including Burberry, Hugo Boss and Dior Addict continued to gain share and
took positions amongst the top 10 fragrances in 2012. In addition, mass brands Old Spice
Aftershave and Axe Aftershave continued to be the top two brands, with the highest value
shares. Mass brands continued to enjoy strong distribution, mainly due to their established
presence. In addition, since these brands were associated with the leading multinationals,
including Hindustan Unilever, these were available across the country, including in second-tier
cities and rural areas.
Although there was not any significant shift in the distribution of fragrances, consumers were
increasingly seen to visit exclusive premium brand stores in 2012. Although department
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stores continued to account for the majority of sales of fragrances, hypermarkets also
witnessed sharp growth in sales. Interestingly, the limited distribution of fragrances facilitated
growth in sales of fragrances through internet retailing, although value sales continued to be
very low.
There were no packaging innovations in fragrances in 2012. Glass bottles with pumps
continued to be the most popular packaging for fragrances. Although smaller 50ml bottles
were available, consumers continued to prefer 100ml bottles, as they are more economical in
terms of the per ml price.


COMPETITIVE LANDSCAPE
Bulgari Parfums led fragrances with a value share of 5% in 2012. The Bvlgari brand continued
to enjoy huge popularity amongst urban consumers, especially men. The brand benefits from
a long-established presence, and leverages its easier availability compared with other
perfume brands.
Hindustan Unilever recorded the highest increase in value share to reach 4% in 2012. This
sharp rise was mainly due to its established brand image, easy availability and strong
promotions carried out by the company to make the brand successful. The company launched
new products under the Axe brand, which helped the brand to gain popularity amongst
consumers.
Although the category continued to be very fragmented, international manufacturers
controlled value sales in 2012. Companies including Bulgari Parfums, Clarins, Antonio Puig
and Calvin Klein Cosmetics controlled a significant value share. On the other hand, domestic
manufacturers such as Menezes Cosmetics accounted for a very small share. The concept of
alcohol-based perfumes did not originate in India; however, it gained strength over the review
period.
Travel packs, small trial packs, new shapes of bottle and giving away toiletries and pouches
as gifts were some of the new activities which manufacturers used to attract consumers.
There were no significant advertising campaigns for fragrances, and consumers continued to
buy fragrances based on the popularity of international brands.
Premium brands continued to be preferred over mass brands, particularly in urban areas,
where consumers were willing to spend more on their style. Premium brands such as Hugo
Boss, Bvlgari and Burberry became increasingly popular in urban areas. On the other hand,
although mass brands from companies such as Avon and Oriflame were present in the
country, their presence was limited mainly to second-tier cities. Private label brands such as
John Miller were very limited and were not particularly successful. However, the private label
of Marks & Spencer was quite prominent in 2012.


PROSPECTS
With increasing urbanisation resulting in an increase in the number of exclusive brand stores,
and increasing numbers of consumers wanting to flaunt their style and attitude, the demand
for premium fragrances is likely to increase over the forecast period. To tap into the huge
demand for fragrances even in second-tier cities, international manufacturers are likely to
introduce more affordable colognes. The forecast period could witness a surge in demand for
premium and mass fragrances to cater to consumers with varied needs and affordability.
Fragrances is expected to increase by a constant value CAGR of 13% in the forecast period.
The majority of growth is likely to come from second- and third-tier cities, where consumers
increasingly aspire to look like urban men and women. Since fragrances are considered
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important to flaunt style, consumers in second-tier cities, including women, will increasingly
purchase premium and mass fragrances over the forecast period, contributing to the growth of
overall fragrances.
Although there are no significant threats to the growth of fragrances, poor economic
conditions might prevent consumers from spending on premium fragrances. In addition, the
poor availability of premium fragrances in department stores across the country could help
counterfeit products to strengthen their roots and negatively impact sales of fragrances. The
majority of sales of counterfeit products continue to come from metropolitan areas, including
Delhi and Mumbai, and northeast states, including Assam.
Premium womens fragrances is expected to see the fastest growth, as increasing numbers of
women will enjoy financial independence; hence having the power to spend more on personal
grooming. Furthermore, the increase in the number of exclusive stores by premium brands
such as Burberry across the country will support the growth of womens fragrances
Average unit prices are likely to increase over the forecast period, mainly due to the strong
growth of premium fragrances. In addition, manufacturers are likely to introduce masstige
brands in fragrances to cater to consumers who want to buy good fragrances, but are
restricted due to low affordability.
International manufacturers are likely to introduce more products for women to tap into the
growth potential of womens fragrances. In addition, premium brands such as Burberry are
likely to increase the number of exclusive stores across the country to widen their distribution
networks. Many international companies will also introduce premium unisex fragrances over
the forecast period. Furthermore, domestic manufacturers such as Titan Industries are likely
to foray into fragrances and introduce masstige fragrances to attract consumers who are not
willing to spend on premium fragrances.


CATEGORY DATA

Table 1 Sales of Fragrances by Category: Value 2007-2012

Rs million
2007 2008 2009 2010 2011 2012

Premium Fragrances 2,341.9 2,863.5 3,416.9 4,248.9 5,725.2 7,347.9
- Premium Men's 1,026.3 1,255.5 1,490.3 1,844.9 2,482.9 3,155.8
Fragrances
- Premium Women's 1,315.6 1,608.0 1,926.6 2,404.0 3,242.3 4,192.1
Fragrances
- Premium Unisex - - - - - -
Fragrances
Mass Fragrances 1,565.9 1,760.4 1,970.7 2,224.7 2,705.3 3,207.9
- Mass Men's Fragrances 795.0 905.1 1,030.1 1,187.3 1,474.5 1,783.2
- Mass Women's Fragrances 770.9 855.4 940.6 1,037.4 1,230.8 1,424.7
- Mass Unisex Fragrances - - - - - -
Fragrances 3,907.7 4,624.0 5,387.6 6,473.6 8,430.5 10,555.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 2 Sales of Fragrances by Category: % Value Growth 2007-2012

% current value growth
2011/12 2007-12 CAGR 2007/12 Total
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Premium Fragrances 28.3 25.7 213.8
- Premium Men's Fragrances 27.1 25.2 207.5
- Premium Women's Fragrances 29.3 26.1 218.6
- Premium Unisex Fragrances - - -
Mass Fragrances 18.6 15.4 104.9
- Mass Men's Fragrances 20.9 17.5 124.3
- Mass Women's Fragrances 15.8 13.1 84.8
- Mass Unisex Fragrances - - -
Fragrances 25.2 22.0 170.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 3 Fragrances NBO Company Shares by Value 2008-2012

% retail value rsp
Company 2008 2009 2010 2011 2012

Bulgari Parfums SA 3.6 4.0 4.5 4.8 5.0
Menezes Cosmetics Pvt Ltd 5.4 5.4 5.0 4.9 4.8
Antonio Puig SA 3.9 3.9 4.4 4.7 4.8
Clarins SA 4.7 4.7 4.2 4.3 4.4
Calvin Klein Cosmetics Co 3.7 3.5 3.9 4.0 4.3
Hugo Boss AG 3.6 3.6 3.8 4.0 4.1
Hindustan Unilever Ltd 3.3 3.3 3.4 3.5 3.8
Davidoff Parfums 2.7 2.5 2.9 3.1 3.3
Oriflame India Pvt Ltd 2.9 3.3 4.0 3.5 3.2
Modi Revlon Pvt Ltd 3.9 3.7 3.3 3.0 2.7
Parfums Christian Dior 2.0 2.0 2.2 2.4 2.5
Elizabeth Arden Inc 1.9 2.1 2.2 2.4 2.4
Salvatore Ferragamo SpA - - 2.2 2.2 2.0
Inter Parfums SA 1.3 1.4 1.7 1.8 1.9
Gillette India Ltd 1.8 1.7 1.6 1.5 1.5
Avon Beauty Products 1.4 1.4 1.4 1.3 1.3
India Pvt Ltd
Helene Curtis India 1.1 1.0 0.9 0.9 1.0
Ltd, J K
VI John Group 1.1 1.0 0.9 0.9 0.9
Gucci Group NV 0.6 0.7 0.9 0.9 0.9
Quest Retail Pvt Ltd 0.6 0.6 0.6 0.6 0.5
Yves Saint Laurent 0.4 0.4 0.4 0.4 0.4
Parfums
Modicare Ltd 0.1 0.1 0.1 0.1 0.1
Hindustan Lever Ltd - - - - -
Others 49.8 49.6 45.5 44.8 44.3
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 4 Fragrances LBN Brand Shares by Value 2009-2012

% retail value rsp
Brand Company 2009 2010 2011 2012

Old Spice Aftershave Menezes Cosmetics Pvt Ltd 5.4 5.0 4.9 4.8
Axe Aftershave Hindustan Unilever Ltd 3.3 3.4 3.5 3.8
Dior Addict Parfums Christian Dior 2.0 2.2 2.4 2.5
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Dec Del Antonio Puig SA 2.0 2.2 2.3 2.4
Boss Bottled Hugo Boss AG 1.9 2.1 2.2 2.3
Obsession for Men Calvin Klein Cosmetics Co 1.9 2.0 2.1 2.1
Azzaro Chrome for Men Clarins SA 2.2 2.0 2.0 2.0
Charlie Modi Revlon Pvt Ltd 2.5 2.2 2.0 1.9
Burberry for Women Inter Parfums SA 1.4 1.7 1.8 1.9
Davidoff Cool Water Davidoff Parfums 1.3 1.5 1.6 1.8
Woman
Hugo Woman Hugo Boss AG 1.7 1.7 1.7 1.8
Red Door Elizabeth Arden Inc 1.3 1.5 1.6 1.7
Davidoff Cool Water Davidoff Parfums 1.2 1.4 1.5 1.5
for Men
Gillette Aftershave Gillette India Ltd 1.7 1.6 1.5 1.5
Splash
Bvlgari Aqva Pour Bulgari Parfums SA 1.4 1.4 1.5 1.5
Homme
Azzaro Clarins SA 1.4 1.3 1.3 1.4
Bvlgari Aqua Bulgari Parfums SA 1.0 1.1 1.2 1.2
Eternity Calvin Klein Cosmetics Co 0.9 0.9 1.0 1.1
Par Amour Clarins SA 1.1 0.9 1.0 1.0
Park Avenue Helene Curtis India 1.0 0.9 0.9 1.0
Aftershave Ltd, J K
Memoire D'Homme Antonio Puig SA 0.8 0.9 0.9 0.9
VI John Splash VI John Group 1.0 0.9 0.9 0.9
Aftershave Lotion
Kouros Gucci Group NV 0.7 0.9 0.9 0.9
Fire & Ice Modi Revlon Pvt Ltd 1.2 1.1 0.9 0.9
Gant Elizabeth Arden Inc 0.8 0.7 0.7 0.7
Subtil Pour Homme Salvatore Ferragamo SpA - 0.6 0.6 0.6
The Body Shop Quest Retail Pvt Ltd 0.6 0.6 0.6 0.5
Subtil Pour Femme Salvatore Ferragamo SpA - 0.6 0.6 0.5
Opium Yves Saint Laurent Parfums 0.4 0.4 0.4 0.4
Oriflame Glacier Oriflame India Pvt Ltd 0.2 0.2 0.2 0.2
Oriflame Volare Oriflame India Pvt Ltd 0.2 0.2 0.2 0.2
Avon Little Black Avon Beauty Products 0.2 0.2 0.2 0.1
Dress India Pvt Ltd
Avon Black Suede Avon Beauty Products 0.1 0.1 0.1 0.1
India Pvt Ltd
Senses Modicare Ltd 0.1 0.1 0.1 0.1
Axe Aftershave Hindustan Lever Ltd - - - -
Elle 18 Hindustan Lever Ltd - - - -
Ivana Hindustan Lever Ltd - - - -
Others 57.2 55.5 54.6 53.9
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 5 Men's Premium Fragrances LBN Brand Shares by Value 2009-2012

% retail value rsp
Brand Company 2009 2010 2011 2012

Boss Bottled Hugo Boss AG 7.0 7.5 7.6 7.6
Obsession for Men Calvin Klein Cosmetics Co 7.0 7.0 7.0 7.1
Azzaro Chrome for Men Clarins SA 8.0 7.0 6.9 6.8
Davidoff Cool Water Davidoff Parfums 4.5 5.0 5.1 5.1
for Men
Bvlgari Aqva Pour Bulgari Parfums SA 5.0 5.0 5.0 5.0
Homme
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Memoire d'Homme Antonio Puig SA 2.8 3.0 3.2 3.1
Kouros Gucci Group NV 2.5 3.0 3.0 2.9
Gant Elizabeth Arden Inc 3.0 2.5 2.5 2.4
Subtil Pour Homme Salvatore Ferragamo SpA - 2.0 1.9 1.9
Others 60.2 58.0 57.8 58.0
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 6 Women's Premium Fragrances LBN Brand Shares by Value 2009-2012

% retail value rsp
Brand Company 2009 2010 2011 2012

Dior Addict Parfums Christian Dior 5.5 6.0 6.2 6.3
Dec Del Antonio Puig SA 5.5 6.0 6.0 6.0
Burberry for Women Inter Parfums SA 4.0 4.5 4.7 4.7
Davidoff Cool Water Davidoff Parfums 3.5 4.0 4.2 4.6
Woman
Hugo Woman Hugo Boss AG 4.8 4.5 4.5 4.5
Red Door Elizabeth Arden Inc 3.5 4.0 4.2 4.3
Azzaro Clarins SA 4.0 3.5 3.5 3.5
Bvlgari Aqva Bulgari Parfums SA 2.8 3.0 3.1 3.1
Eternity Calvin Klein Cosmetics Co 2.5 2.5 2.5 2.7
Par Amour Clarins SA 3.0 2.5 2.5 2.5
Subtil Pour Femme Salvatore Ferragamo SpA - 1.7 1.5 1.2
Opium Yves Saint Laurent Parfums 1.0 1.0 1.0 1.0
Others 60.0 56.8 56.0 55.7
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 7 Forecast Sales of Fragrances by Category: Value 2012-2017

Rs million
2012 2013 2014 2015 2016 2017

Premium Fragrances 7,347.9 8,581.2 9,914.1 11,353.7 12,873.6 14,475.4
- Premium Men's 3,155.8 3,650.9 4,171.6 4,724.5 5,322.6 5,933.0
Fragrances
- Premium Women's 4,192.1 4,930.2 5,742.6 6,629.2 7,550.9 8,542.3
Fragrances
- Premium Unisex - - - - - -
Fragrances
Mass Fragrances 3,207.9 3,495.9 3,793.0 4,077.0 4,346.3 4,594.0
- Mass Men's Fragrances 1,783.2 1,976.0 2,182.7 2,379.5 2,569.5 2,747.0
- Mass Women's Fragrances 1,424.7 1,519.9 1,610.3 1,697.5 1,776.8 1,847.0
- Mass Unisex Fragrances - - - - - -
Fragrances 10,555.7 12,077.1 13,707.1 15,430.8 17,219.9 19,069.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources


Table 8 Forecast Sales of Fragrances by Category: % Value Growth 2012-2017

% constant value growth
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2012-17 CAGR 2012/17 TOTAL

Premium Fragrances 14.5 97.0
- Premium Men's Fragrances 13.5 88.0
- Premium Women's Fragrances 15.3 103.8
- Premium Unisex Fragrances - -
Mass Fragrances 7.4 43.2
- Mass Men's Fragrances 9.0 54.0
- Mass Women's Fragrances 5.3 29.6
- Mass Unisex Fragrances - -
Fragrances 12.6 80.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources


Table 9 Retail Sales of Fragrances by Concentration 2007-2012

%
2007 2008 2009 2010 2011 2012

Cologne 51.5 50.3 49.2 48.1 46.4 45.0
Aftershave 18.0 17.0 13.0 11.4 9.0 9.0
Eau de Parfum 3.0 3.5 4.0 4.4 5.0 5.3
Eau de toilette 23.0 25.0 30.0 33.0 37.0 39.0
Others 4.5 4.2 3.8 3.1 2.6 1.7

TOTAL 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources