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FRAGRANCE INDUSTRY:

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USERS ATTRIBUTE TOWARDS THE PERFUMES BRANDS


Manish Rai*
Dr Pradip Manjrekar**

ABSTRACT
Fragrances are proving increasingly popular in India, as the population continues to
increase its expenditure on increasingly sophisticated personal care products containing
greater amounts of fragrance. The Indian flavors and fragrance market is valued at around
$225 million, 55 per cent of which comprises fragrances, with the top five international
fragrance manufacturers accounting for 75 per cent of the market. Prior to the launch of
modern retail formats in India, a trip to abroad by family or friends was the best way to bring
international brands of fragrance to home. Currently, all the global brands are available in
India. The local players like Godrej, Nirma, and Dabur etc have to fight with these global
brands for a share of the market.
The main objective of the study is to understand the key drivers of the market and the
consumer behavior towards the imported and the local fragrance Brand.
The study will help the local manufacturers and the traders to analyze the demand of the
national and international brands to obtain high results in Modern trade.
Key words: Fragrance, customer behavior, personal care products.

*Asstt Professor (Business Management), Padmashree Dr D.Y. Patil University, Navi


Mumbai
**Professor (Business Management) and Head Research & Consultancy & Extension
Centre (Business Management) and Ph.D. Guide (Business Management), Padmashree Dr
D.Y. Patil University, Navi Mumbai
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INTRODUCTION

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Whether globalization is a boon or bane is debatable. One of the major positive outcomes of
globalization is the change in the standard of living of Indians. According to the Indian
cosmetic market the demand for fashionable accessories has increased by manifolds. The
direct result of this increasing demand is that most of the global multinationals associated
with cosmetic products and perfumes are finding their way in the Indian market. Most of the
top perfume brands in India are international players considering Indian's affinity for foreign
goods. The concept of branded perfumes in India is relatively new and with the arrivals of
modern trade, the demand and exposure to branded perfumes has become easy to end
consumers.

Branded perfumes in India today have become an inseparable part of an individual. Adorning
and dressing up is a like ritual for a woman. Along with looking good one has to also smell
good these days. The usage of perfumes is becoming an indispensable part of every Indian.

The global perfume market is estimated at $ 40 billion, out of which India and China have a
considerable share. The Top Perfume Brands in India are Christian Dior, Hugo Boss, and
Calvin Klein etc. These top perfume brands in India are known for their vast collections of
unique and elegant perfumes. Be it in the form of colognes, body sprays, apparel scents or
deodorants perfumes in Indian are used by all classes and masses. The perfume industry in
India has witnessed stunning growth over the last two decades. The Indian perfume industry
which was simply a cottage industry a few decades ago turned into a fully fledged fragrance
industry lately. Presently the perfume market in India is almost worth Rs 300 crores and is
growing at a rapid rate of almost 100% annually. According to industry experts the market
trend shows a promising growth of almost double the figure in the next two years. The credit
for the growth in the branded perfume market in India is also largely due to the fact of the
marketing strategies adapted by the top perfume brands in India. Mostly endorsed by
celebrities these perfume brands create such an aura that people do not think twice before
paying a hefty sum for a tiny little bottle.

It was also argued that consumer socialization is viewed as a developmental process that
changes through different stages as children mature into adult consumers (John 1999). In
other words, although young people are getting more and more interested at branded
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products, they might value luxury goods differently among the different age groups.
Marketers are becoming interested at this segment in expanding their market share, while the

educator would like to understand more about this particular segment in their perception of
wealth and luxury consumption.
The globalization and liberalization led to high standard of living in urban and suburban
India. It resulted into increased demand for fashionable products especially among the
younger generation. The adolescents adapt new fashion, style and trends with an inclination
towards body perfumes to present their unique image. Perfumes influence the mood and
behavior of individuals and form a major part of fragrances which constitute essence, flavors
odors in all edibles and non edible products. The aroma therapy is the best example of
fragrance persuasion. The young population of India between the ages of 15 to 30 is highest
population in the world which is claimed to be a high potential market to use perfumes, toilet
water, cologne and other cosmetic products Sachin Borgave* and Chaudhari J.S. [7] Irina
Barbalova (GCI November 2008) stated that the young people living in urban India are
increasingly brand conscious and are key to the future India. The total value of cosmetics
sales is likely to rise to$6 billion by 2012, making India a safer bet for investors. Indian
fragrance market is worth $ 30 million out of which 50 percent is accounted for alcoholic and
attar perfumes and is growing at the rate of 8.5 percent .It has reached to 2 million units in
2008. [10]The Data monitor (October 2009) has forecasted the fragrance market in 2013
assessing its worth at US $40 million and 2.7 million units, a growth of 41.1 percent and 35
percent respectively by 2013 ,though India accounts for just 1.2 percent of Asia pacific
market.
In short luxury brand is the extreme end of the prestige-brand category. It is generally
agreed that prestige is a benchmark to measure the component of luxury brand. Past studies
stressed that the prestige in a brand consists of perceived hedonic conspicuous value or
identity, perceived unique value, perceived social value, perceived hedonic value, perceived
quality value and high awareness level (Vigneron and Johnon 1999; Biel 1992). Bagwell and
Bernheim (1996) further suggest that consuming luxury brands is a means to achieve higher
social status rather than for physiological utility and practical use.

MARKET AND GROWTH DRIVERS


Market:India is one of the leading manufacturers of Flavors and fragrances in the world. These all are
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natural products, but in developing synthetic flavors and fragrances from castor oil

derivatives, India is lagging behind. India, being a world leader in Castor seeds and Castor oil
production and processing has edge over other countries like Japan, France and Germany
who are importing castor oil and manufacturing these perfumery chemicals for further
processing into perfumes and Synthetic flavors. Internationally, Germany, France,
Switzerland and Japan are the leading producers of synthetic flavors and fragrances from
many natural ingredients, including castor oil derivatives like Undecylenic Project Profile on
Mott MacDonald Castor Oil Derivatives Perfumery Raw Materials iNDEXTbAF-05 2acid
and Heptaldehyde. Though, there is large international market for perfumery chemicals,
estimated market in India is approx. 5000 MT. The Global Demand of Flavors and
Fragrances is set to increase. The following figure gives the region wise Demand Break up of
Flavors and Fragrance market, estimated for the year 2008.
Source: FAO statistics

Growth Drivers:

The Global Demand of flavors and fragrance is estimated to increase at a growth


rate of around 4% per annum.

Moreover, the demand for flavors and fragrances in the Asia/Pacific region is
estimated to be growing at a rate of about 7% per annum through 2008. Growth in
the worlds most developed markets will continue to be moderate, restrained by
market maturity, consolidation in flavors and fragrances using industries and
strong downward pressure on prices.
Flavor and fragrance is looking for products from natural sources and prefer to use
raw materials which are harmless and bio-degradable. In the light of this fact,
there is good scope for castor oil derivatives in the global market.
Demand for fragrance blends and essential oils will benefit from increased interest
in natural and exotic aromas, which are more expensive than their synthetic
counterparts.

RESEARCH METHODOLOGY
The nature of the study is Descriptive research to find out the specific variables which
influence buying and consumption of fragrance branded products in modern trade.
The research has been conducted at a micro level to study the attributes of the buyer
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preferences towards the branded perfumes. The area selected for the study is Navi Mumbai

and outlets like Shoppers stop in Inorbit mall and Central in Raghuleela mall, Vashi. Since
this area has multiple visitors come from different cultures and demographics and have
influences of group dynamics. A Primary data collected from selected sample through well
structured questionnaire to customer and interview to sales representative, while the
secondary data collected through online database, periodicals and journals.

OBJECTIVE OF THE STUDY


1) The basic objective of the study is to know the market Drivers for increasing demand
of fragrance brands products.
2) To know the consumers motives to buy high end luxury perfumes brands.
3) To know the available perfumes brands in Indian market.
4) To know the face oriented brand value and self oriented brand value attributes.

HYPOTHESIS
1. There are no difference in consumption pattern of bachelors and married customer in terms
of spending nature and shopping preference in modern trade.
2. Females are spending more on fragrance product than males counterpart.

SCOPE OF THE STUDY


The research enables to study the purchasing behavior, attitude & preferences and buying
motives of prospective buyer towards the perfumes brands in modern trade. The detail
analyses of gathered data through questionnaire and interview envisage appropriate
conclusions which may help in shelving right merchandise of perfumes brand in modern
trade and to know the demand pattern of domestic and international perfumes brand in
modern trading.
Sample Size:
Since this study has been done keeping modern trade format, like new age retailer like
Shoppers stop and Central in view, purposive, and convenience sampling has been taken to
conduct the research. A pretest was conducted on the street nearby Vashi Railways station in
Vashi to test the measurements and some items were deleted according to the pretest result.
For the married couples sample, mall-intercept was being used, aiming at married couples
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from mid-twenties to mid-fifties. For the bachelors sample, the same questionnaire filled by
bachelors in Mall. Total successful sample was 198. Details can be found in Table 1. The
bachelors interviewees were divided into six groups according to their age. The sample of

bachelors focuses on bachelors under the age of 30 which representing 44% of the total
sample, while married couples sample between the age of 31 and 55 representing 56%
(Table1).
The questionnaire was designed to cover brand values, brand attitudes, real brand
purchase and respondents demographic profile. For brand values and attitudes statements 6points scale was being used. A factor analysis was conducted to categorize the values and
attitudes items. The questionnaire was designed to cover brand values, brand attitudes,
real brand purchase and respondents demographic profile.

DISCUSSION AND RESULTS


Table-1
Age

Frequency

Percentage

Percentage

(%)

(%)

less than 21

22

11.11

21-25

43

21.72

26-30

22

11.11

31-35

21

10.61

36-40

28

14.14

41-45

28

14.14

46-50

21

10.61

51-55

13

6.57

Total

198

100.00

Bachelors
(Total 87)

Married couples
(Total 111)

43.94

56.06

100.00

The Married couples & bachelors are having different characteristic and proclivity towards
the perfumes.
Table 2A:

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Ranking of Brand Values Means (Age>=30):


Married couples

Luxury Brand Value

Mean

Confidence

4.28

Status

4.22

Materialism

4.17

Durability

4.16

Taste

3.91

Hedonic

3.83

Wealth

3.79

Symbol of Success

3.68

Uniqueness

3.55

Self-image

3.49

Table 2B:
Ranking of Brand Values Means (Age<30):
(Bachelors)

Luxury Brand Value

Mean

Confidence

4.72

Status

4.69

Materialism

4.59

Wealth

4.41

Taste

4.36

Durability

4.25

Self-image

3.89

Symbol of Success

3.86

Hedonic

3.85

Uniqueness

3.78

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Statement:

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Here Table 2 and 3 show the ranking order of the perceived brand values and brand attitudes
between Married couples and bachelors. From Table 2A and 2B, it can be observed that
Confidence, Status and Materialism are regarded as the highest brand value attributes
both for Married couples and bachelors although bachelors has higher mean score in general
comparing to Married couples.

Table 3B: Ranking of Brand Attitudes Means (Age<30): (Generation Y)

Brand Attitude Statements

Mean

Using luxury brands would make me feel superior.

3.9

Feel happy when recognized by others on the luxury brands we purchased.

3.89

We are happy when sales person treated us as VIP.

3.87

We should consider the brand popularity when purchased

3.63

We do not have to consider others' views towards the brands that we purchases.

3.59

Using luxury brands would make me feel different from others.

3.57

Using luxury brand would make me feel respected

3.48

Despite the high price, it is wise to buy luxury brands

3.34

When buying gifts, we should purchase luxury brands

3.33

We should buy brands that our friends used

2.98

It is insulting for both gift givers and receivers if it is a cheap brands

2.93

Table 4: Brand Values Factor Analysis


Component
1

Face Oriented Brand Values

Materialistic

.805

Wealth

.781

Hedonic

.748

Symbol of Success

.743

Status

.653
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Self Oriented Brand Values

Confidence

.802

Durability

.764

Self-image

.639

Uniqueness

.626

Taste

.575

Statement
As for the brand attitudes statements (Table 3A and 3B), the married couples rated the
highest on we do not have to consider others views towards the brands that we purchase
while bachelors only rated this 5th. Bachelors seems to consider luxury brands are important
in making them feel superior (ranking 1). For buying gifts, married couples considered luxury
brands are more important than the bachelors, whereas both groups rated lowest for it is
insulting for both gift givers and receivers if it is a cheap brands. This indicated that
samples from the two generations have mix attitudes toward luxury brands.

Products attribute
The respondents preferred to rate important product attributes of perfume sequentially, the
top rated is odor of perfume while Brand is secondary rated, price is tertiary rated and
packaging is least rated. However the price and brand attributes are overlapping and cannot
be distinguished clearly. Brand conflicts with the odor attribute for top rating and price
attribute is highly rated at secondary place. At the tertiary place the responses recorded for
price and brand attributes are equal. It is very clear that bottle design or packaging of
perfumes is a least rated attribute but may influence subconsciously for its attractiveness and
convenience to handle. It is also important to note that almost 25 percent of respondents are
hesitant to rate the attributes due to their unclear specter of buying influences.

Higher Brands of their choice


Other popular brands in the price range of rupees 200-300 are Zeroone Night Women, Fa
Body Deo, Fragrance-To turn you on etc. Different colors (Blue, Red, White, and Gold) of
perfumes of Charlie brand by Revelon may be purchased by the ladies spending just 300-499
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rupees. Other brands available in the same price range are Jovan Musk, Adidas Tropical
Passion/Fruity Rhythm, and Co2 Pour Femne by Jeanne and Tiger Eye by Shah Rukh Khan.

Next segment of perfumes for women is little more expensive to the brands already listed
here. Fresh Wibes and Pure Lightness of Adidas, Up/Down of Nike, Amitabh, Sport and Hot
by Benneton, Aksar Perfume by Archies, Cumbia Women Colors by Benneton,Co2 Pour
Femne by Jeanne, Gals Perfume, Ms Lomami Cologne, Coty Perfumes, Ocean Pacific,
Cinderella, Snow White by Disney,Barbie Adventure/Sirena by Mattel, Ghost Deo, Indigo By
Fred Hayman, Colors De Benetton Perfume By Benetton,Puppy & Boyz, and Love Puppy &
Gals brands are available between 500 to 799 rupees. Some of these brands are available in
100 ml packs while some are available in 50-75 ml pack along with a free gift.

CONCLUSION
The present research focuses the resemblance and differences amongst the group in buying
perfumes, their attitudes and preferences towards perfumes. It is found that the both the
segment have unique characteristics in buying pattern. The segment is largely interested in
perfumes and feels better in using the product. Presenting good image and odour are major
priorities for using perfumes. The males and females in the age group of 20 to 25 have similar
buying pattern and possess two to three perfume bottles for daily use. The adolescents are
price cautious and try celebrity brands of lower cost perfumes even though the income levels
vary they are more attracted towards celebrity brands. The brand is also a foremost priority to
the group. However they are less loyal to a particular brand since they have a tendency to
quick switch over. The group is more influenced through their friends and families, while
advertisements through television and magazines are subconsciously heartwarming

BIBLIOGRAPHY

India retail report 2008-09, Image group,

Anderson K. & Sharp, B. (2010), do growing brands win younger consumers?


International Journal of Market Research Vol.52 Issue 4, pp433-441.

Bagwell, L.S. & Bernheim, B.D. (1996). Veblen effects in a theory of conspicuous
consumption, American Economic Review, 86 (3), 349-73

Biel, A. L. (1992). How brand images drives brand equity, Journal of Advertising
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Journal of Policy and Organizational Management, ISSN: 09767738 & E-ISSN:

09767746, Vol. 1, Issue 2, 2010, PP-01-08, Sachin Borgave* and Chaudhari J.S.

So Lai Man, Stella, 2011 Cambridge Business & Economics Conference ISBN :
9780974211428

India: Premium deodorants all set to make a splash,Businessline,Chennai:Nov 3,pg.1

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