Description
This presentation explains the fundamental characteristics of Indian perfume industry. It lists the growth drivers and impediments of fragrance market.
4 3.5 3
30 25 20 15 2008
2.5
2 2004
2005
2006
2007 %Growth
Market Value ( $ billion)
?The global fragrances market grew by 3.4% in 2007 to reach a value of $25 billion and volume of 893.8 million units. ?In 2013, the market is forecast to have a value of $32.2 billion and volume of 1082.6 million units, an increase of 21.3%
Unisex 5% Male 31%
AsiaPacific 9%
Female 64%
Americas 40%
Europe 51%
GENDER
GEOGRAPHICAL
MARKET SHARE
L'Oreal 7% Coty Inc. 10% Procter & Gamble 6%
DISTRIBUTION
Departmen t Stores (incl. DutyFree Shops) 38%
Others 20%
Supermark ets 14% Specialist Retailers 28%
other 77%
70 60 50 40 30 20 10 0
10 9 8 7 6 5 4 3 2 0 0 4 5 6 7 8
$ Million Growth
?The Indian fragrances market grew by 8.8% in 2007 to reach a value of $58 million and a value of $91.7 million. ?In 2013, the market is forecast to have a value of $91.7 million and a volume of 6.4 million units, an increase of 47.5%
Unisex 4% Male 30% Female 66%
South Korea 14%
India 3% Japan 35%
China 21%
Rest of Asia Pacific 28%
GENDER
GEOGRAPHICAL
LVMH Chanel 3% 2% Unilever 36%
other 11%
Hyper Markets 11%
Specialist Retailers 48%
Other 59%
Departme ntal store(incl. Duty-Free Shop) 32%
MARKET SHARE
DISTRIBUTION
Strong Position of Global Brands
High Fixed Cost
Economies of scale
Personal care products or large fashion houses .
FUNDAMENTAL CHARACTERISTICS OF INDIAN PERFUME INDUSTRY
Retailers as major Buyer
Advertising
GROWTH DRIVERS
? Increasing HNI population
IMPEDIMENTS
? High rate of import duty .
? Increasing Globalization.
? Increasing number of self dependent women between
? Illegal distribution channel
here. ? Perfumes account for 8% of
22 to 45 year of age group.
? Increasing numbers of Malls. ? Emerging Tier II cities.
total cosmetic sales in India.
? Indigenous brands fight it out with the international ones
PRIMARY RESEARCH
BRAND
OFFERINGS TARGET (MEN : M WOMEN : W) Male and female above 19 ,SEC A1,A2
POSITIONING
Christian Dior W 31 M11
Scent for everyone, inspires luxury, refinement and fashion.
Calvin Klein
W 26, M 24
Male and female above 19,teenagers ,SEC A1,A2,B1
CK…coca cola of fashion world…’ Emen and women ‘one indeterminable category’ youthfulness and boldness, best suited for the any-day, any-way spirit. Smells like a proper grown up perfume, Keeping the French touch with all products , positioned as top of quality product , associated with luxury, perfection, art and design
Chanel
W 10 , M7
Male and female above 19 ,SEC A1,A2
BRAND
OFFERINGS (MEN : M WOMEN : W) W 25
TARGET
POSITIONING
Elizabeth Arden Davidoff Burberry
Female above 19 , SEC A1,A2,B1 Male and female, SEC A1,A2,B1,B2 Male and female, SEC A1,A2,
perfumes with “global prestige”, longevity of classic fragrances . very classy , romantic wear ,tough, unique positioning as the authentic. British luxury brand , The sugar and spice scent that embodies the playful London-chic ,stylish , longevity. clean, fresh fragrance packaged in a starkly beautiful bottle , modern and alluring fragrances ,Luxury and class.
W 12, M 18 W7 M6
Issey Miyake
M 12 W9
Male and female, SEC A1,A2,
BUYING PATTERNS
Users of MAYBELLINE Cosmetics Yes 52% No 48% Can't Say 29%
Potential Buyers
Yes 49% No 22%
Can't say 19%
Age Group <= 25
Can't say 8%
Age Group > 25
Yes 38% NO 54%
No 28%
Yes 53%
PERFUME USAGE FREQUENCY
30
PLACE OF PURCHASE
DUTY FREE
25
ONLINE
20
15
DRUGSTORE
EXCLUSIVE COSMETIC SHOP MALL ABROAD
10
5
0
0
10
20
30
First Level of association
Second Level of Association
COLOR
ATTITUDE
RADIANCE
ESTEEM
Spicy 8% Sporty 14% Fruity 11%
Woody 6% Floral 31%
Musk 22%
Oriental 8%
Primary research says that 92% of the people like to experiment with their perfume brands
Women’s ‘lifestyle’ product built around a ‘liberated’ image Charles Revson, president of the revlon company in the USA… “women would be attracted by a perfume with a man’s name” …A fragrance designed for the working woman's budget; geared to the under-30 market.
PRODUCTION OF FINISHED GOODS • MODI-REVLON FACTORY e.g. MODINAGAR(UP) • (INDIGENISED 90%) • IMPORTED EDI
DISTRIBUTION
SALES
• REVLON WAREHOUSES
EDI
EDI • REVLON DISTRIBUTORS
• HYPER/SUPER MARKETS • INDEPENDENT PERFUME SHOPS • DEPARTMENT STORES • SPECIALTY STORES • BEAUTY SALONS • PHARMACIES AND PARAPHARMACIES • LOCAL CONVINIENCE STORES • DISTANCE SELLING
Nina Ricci Perfumes is a unique collection of luxury perfumes
‘’Their delicate floral fragrances are designed for the elegant, eternal woman, with a twist of modernity’’
The house of Nina Ricci was founded by Maria Ricci and her son Robert in Paris in 1932.
In 1988, SANOFI & Nina Ricci formed Parfums Nina Ricci In 1998, Mariano Puig, purchases the house of Nina Ricci NINA RICCI launched in India in 1996
NINA : A modern day, magical and enchanting fairy tale
Láir du Temps: The icon fragrance from the Nina Ricci house
LOVE IN PARIS: The magic of Paris in a bottle.
PREMIER JOUR: The fragrance of continuously renewed joy.
The PRESTIGE COLLECTION: A range of the most famous Nina Ricci fragrances, in their crystal perfume bottles designed by Lalique :
MANUFACTURER
NINA RICCI PERFUMES, PARIS
IMPORTER AND DISTRIBUTOR
BACCAROSE Perfumes & Beauty Products Pvt Ltd.
RETAIL
Large Format Stores, like LIFESTYLE,CENTRAL,SHOPPER’S STOP
REVLON
1600 1400 1200 0 -2 25000
L’OREAL
12.00% 11.80% -4 20000 11.60%
1000
800 600 400 200 0 2003 -200 -400 REVENUES( IN US M $) PROFIT MARGIN(IN %) NET INCOME( IN US M $) 2004 2005 2006 2007
-6
-8 -10 -12 -14 -16 -18 -20 10000 15000
11.40%
11.20% 11.00% 10.80%
5000
10.60%
0
2003 2004 2005 2006 2007 REVENUES(IN US M $) PROFIT MARGIN (%)
10.40%
NET INCOME(IN US M $)
PUIG GROUP: Net Revenues 2007(in US m $) 1327.396
MAYBELLINE
May be she’s born with it……May be its Maybelline.
MAYBELLINE is focused on helping women feel more beautiful and recognizing their individuality and potential through education and empowerment
1915- T.L. Williams creates the Maybelline Company, a family-owned business. 1971- Great Lash, a water-based mascara, is introduced and makes mascara history. 1996- L’Oréal USA, Inc. acquires Maybelline. TODAY-Maybelline New York is the number one cosmetic brand globally ,available in over 90 countries
FACE
•FOUNDATION •CONCEALER •POWDER •BLUSH •BRONZER
LIPS
• LIP COLOUR • LIP GLOSS • LIP LINER
EYES
•MASCARA •BROW AND LINER •EYE SHADOW
NAIL COLOUR
PURCHASING/ SUPPLY • • • • RAW MATERIALS PACKAGING POS/PROMO FACILITIES AND EQUIPMENTS • INDIRECT PURCHASING • OUTSOURCING PARTNERSHIPS
PRODUCTION OF FINISHED GOODS
EDI • 40 L’OREAL
DISTRIBUTION
SALES • HYPER/SUPER MARKETS • INDEPENDENT PERFUME SHOPS • DEPARTMENT STORES • SPECIALTY STORES • BEAUTY SALONS • PHARMACIES • LOCAL EDI CONVINIENCE STORES • DISTANCE SELLING
FACTORIES e.g. CHAKAN(PUNE) 94% OF THE FINISHED GOODS
EDI • L’OREAL
WAREHOUSES(70)
SUB-CONTRACTORS6% OF FINISHED GOODS
• L’OREAL DISTRIBUTORS
PROMOTIONAL ITEMS
• Improved financial performance • India growth • EPS comparison • Economies of scope • Distribution channel • Brand awareness equity • Strong focus of R & D
• Variety-seeking buying behavior(shelf life of 3 years) • Huge market potential in India. • Growing segment of Indian working women • Increasing purchasing power • Increasing Popularity of branded products • Acquisitions and alliances
STRENGTHS
OPPORTUNITIES
•Counterfeit goods •Grey market •Changing trends •Intense competition saturation in market •Old age generation •Celebrity perfumes highest growth rate THREATS
•Cannibalization •Low market penetration
WEAKNESS
2006
NPAT(in m Euros) CASH FLOW FROM OPERATING ACTIVITIES 2062.1
2007
2657.5
GROWTH RATE(%) 28.87347849
2475.9
2644
6.789450301
REVENUE
CASH AND CASH EQUIVALENTS EPS
15790.1
781.2 2.98
17062.6
1086.7 3.36
8.058846999
39.10650282 12.75167785
In million euro
2004
2005
2006
2007
L'Oréal Paris
Garnier Lancôme Maybelline New York L'Oréal Professionnel Vichy Matrix Georgio Armani Ralph Lauren La Roche-Posay
3826
1786 1704 1202 971 570 429 330 337 217
4055
1875 1811 1250 1000 673 450 359 357 247
4278
1978 1902 1306 1030 772 470 387 379 282
4556
2109 2044 1365 1076 888 494 421 403 323
CORE BENEFITS
BASIC PRODUCT
smell good and to feel good good fragrance
EXPECTED PRODUCT alluring fragrance
attractive and appreciated.
AUGMENTED PRODUCT
stylish bottle
POTENTIAL PRODUCT social identity and self esteem
LOW
HIGH
PHYSIQUE Shimmer, Color
PERSONALITY Young, Cool, Independent
RELATIONSHIP Accessible, Affordable
CULTURE Chic, Urban New York
REFLECTION Stylish, Confident
SELF IMAGE Vibrant, Youthful
Naughty/ Flirty 13% Sexy 9% Glamorou s 13%
Classy/ Sophistica Innovative ted 5% 11%
Chic/Urba n 16%
Single Not working 33%
Married Working 5%
Cool 13%
Young 20%
Single Working 62%
Profile of potential customers
TARGET CONSUMERS
YOUNG FEMALE INDIAN POPULATION BETWEEN THE AGE GROUP OF 16-25
PRODUCT IMAGE:
YOUNG
COOL
CONFIDENT
INDEPENDENT
NAUGHTY
Choice of Television channels
Choice of magazines
Reader's Digest Women's Magazines Educational Magazines Film Magazines Fashion Magazines Business Magazines
Movie channels Hindi soaps
English soaps
Music channels Educational… Fashion channels News channel
0 5 10 15 20 25
0
5
10
15
20
TV Commercials
Magazines
Celebrity Endorsements
THANKS…….
Q &A
doc_879440669.pptx
This presentation explains the fundamental characteristics of Indian perfume industry. It lists the growth drivers and impediments of fragrance market.
4 3.5 3
30 25 20 15 2008
2.5
2 2004
2005
2006
2007 %Growth
Market Value ( $ billion)
?The global fragrances market grew by 3.4% in 2007 to reach a value of $25 billion and volume of 893.8 million units. ?In 2013, the market is forecast to have a value of $32.2 billion and volume of 1082.6 million units, an increase of 21.3%
Unisex 5% Male 31%
AsiaPacific 9%
Female 64%
Americas 40%
Europe 51%
GENDER
GEOGRAPHICAL
MARKET SHARE
L'Oreal 7% Coty Inc. 10% Procter & Gamble 6%
DISTRIBUTION
Departmen t Stores (incl. DutyFree Shops) 38%
Others 20%
Supermark ets 14% Specialist Retailers 28%
other 77%
70 60 50 40 30 20 10 0
10 9 8 7 6 5 4 3 2 0 0 4 5 6 7 8
$ Million Growth
?The Indian fragrances market grew by 8.8% in 2007 to reach a value of $58 million and a value of $91.7 million. ?In 2013, the market is forecast to have a value of $91.7 million and a volume of 6.4 million units, an increase of 47.5%
Unisex 4% Male 30% Female 66%
South Korea 14%
India 3% Japan 35%
China 21%
Rest of Asia Pacific 28%
GENDER
GEOGRAPHICAL
LVMH Chanel 3% 2% Unilever 36%
other 11%
Hyper Markets 11%
Specialist Retailers 48%
Other 59%
Departme ntal store(incl. Duty-Free Shop) 32%
MARKET SHARE
DISTRIBUTION
Strong Position of Global Brands
High Fixed Cost
Economies of scale
Personal care products or large fashion houses .
FUNDAMENTAL CHARACTERISTICS OF INDIAN PERFUME INDUSTRY
Retailers as major Buyer
Advertising
GROWTH DRIVERS
? Increasing HNI population
IMPEDIMENTS
? High rate of import duty .
? Increasing Globalization.
? Increasing number of self dependent women between
? Illegal distribution channel
here. ? Perfumes account for 8% of
22 to 45 year of age group.
? Increasing numbers of Malls. ? Emerging Tier II cities.
total cosmetic sales in India.
? Indigenous brands fight it out with the international ones
PRIMARY RESEARCH
BRAND
OFFERINGS TARGET (MEN : M WOMEN : W) Male and female above 19 ,SEC A1,A2
POSITIONING
Christian Dior W 31 M11
Scent for everyone, inspires luxury, refinement and fashion.
Calvin Klein
W 26, M 24
Male and female above 19,teenagers ,SEC A1,A2,B1
CK…coca cola of fashion world…’ Emen and women ‘one indeterminable category’ youthfulness and boldness, best suited for the any-day, any-way spirit. Smells like a proper grown up perfume, Keeping the French touch with all products , positioned as top of quality product , associated with luxury, perfection, art and design
Chanel
W 10 , M7
Male and female above 19 ,SEC A1,A2
BRAND
OFFERINGS (MEN : M WOMEN : W) W 25
TARGET
POSITIONING
Elizabeth Arden Davidoff Burberry
Female above 19 , SEC A1,A2,B1 Male and female, SEC A1,A2,B1,B2 Male and female, SEC A1,A2,
perfumes with “global prestige”, longevity of classic fragrances . very classy , romantic wear ,tough, unique positioning as the authentic. British luxury brand , The sugar and spice scent that embodies the playful London-chic ,stylish , longevity. clean, fresh fragrance packaged in a starkly beautiful bottle , modern and alluring fragrances ,Luxury and class.
W 12, M 18 W7 M6
Issey Miyake
M 12 W9
Male and female, SEC A1,A2,
BUYING PATTERNS
Users of MAYBELLINE Cosmetics Yes 52% No 48% Can't Say 29%
Potential Buyers
Yes 49% No 22%
Can't say 19%
Age Group <= 25
Can't say 8%
Age Group > 25
Yes 38% NO 54%
No 28%
Yes 53%
PERFUME USAGE FREQUENCY
30
PLACE OF PURCHASE
DUTY FREE
25
ONLINE
20
15
DRUGSTORE
EXCLUSIVE COSMETIC SHOP MALL ABROAD
10
5
0
0
10
20
30
First Level of association
Second Level of Association
COLOR
ATTITUDE
RADIANCE
ESTEEM
Spicy 8% Sporty 14% Fruity 11%
Woody 6% Floral 31%
Musk 22%
Oriental 8%
Primary research says that 92% of the people like to experiment with their perfume brands
Women’s ‘lifestyle’ product built around a ‘liberated’ image Charles Revson, president of the revlon company in the USA… “women would be attracted by a perfume with a man’s name” …A fragrance designed for the working woman's budget; geared to the under-30 market.
PRODUCTION OF FINISHED GOODS • MODI-REVLON FACTORY e.g. MODINAGAR(UP) • (INDIGENISED 90%) • IMPORTED EDI
DISTRIBUTION
SALES
• REVLON WAREHOUSES
EDI
EDI • REVLON DISTRIBUTORS
• HYPER/SUPER MARKETS • INDEPENDENT PERFUME SHOPS • DEPARTMENT STORES • SPECIALTY STORES • BEAUTY SALONS • PHARMACIES AND PARAPHARMACIES • LOCAL CONVINIENCE STORES • DISTANCE SELLING
Nina Ricci Perfumes is a unique collection of luxury perfumes
‘’Their delicate floral fragrances are designed for the elegant, eternal woman, with a twist of modernity’’
The house of Nina Ricci was founded by Maria Ricci and her son Robert in Paris in 1932.
In 1988, SANOFI & Nina Ricci formed Parfums Nina Ricci In 1998, Mariano Puig, purchases the house of Nina Ricci NINA RICCI launched in India in 1996
NINA : A modern day, magical and enchanting fairy tale
Láir du Temps: The icon fragrance from the Nina Ricci house
LOVE IN PARIS: The magic of Paris in a bottle.
PREMIER JOUR: The fragrance of continuously renewed joy.
The PRESTIGE COLLECTION: A range of the most famous Nina Ricci fragrances, in their crystal perfume bottles designed by Lalique :
MANUFACTURER
NINA RICCI PERFUMES, PARIS
IMPORTER AND DISTRIBUTOR
BACCAROSE Perfumes & Beauty Products Pvt Ltd.
RETAIL
Large Format Stores, like LIFESTYLE,CENTRAL,SHOPPER’S STOP
REVLON
1600 1400 1200 0 -2 25000
L’OREAL
12.00% 11.80% -4 20000 11.60%
1000
800 600 400 200 0 2003 -200 -400 REVENUES( IN US M $) PROFIT MARGIN(IN %) NET INCOME( IN US M $) 2004 2005 2006 2007
-6
-8 -10 -12 -14 -16 -18 -20 10000 15000
11.40%
11.20% 11.00% 10.80%
5000
10.60%
0
2003 2004 2005 2006 2007 REVENUES(IN US M $) PROFIT MARGIN (%)
10.40%
NET INCOME(IN US M $)
PUIG GROUP: Net Revenues 2007(in US m $) 1327.396
MAYBELLINE
May be she’s born with it……May be its Maybelline.
MAYBELLINE is focused on helping women feel more beautiful and recognizing their individuality and potential through education and empowerment
1915- T.L. Williams creates the Maybelline Company, a family-owned business. 1971- Great Lash, a water-based mascara, is introduced and makes mascara history. 1996- L’Oréal USA, Inc. acquires Maybelline. TODAY-Maybelline New York is the number one cosmetic brand globally ,available in over 90 countries
FACE
•FOUNDATION •CONCEALER •POWDER •BLUSH •BRONZER
LIPS
• LIP COLOUR • LIP GLOSS • LIP LINER
EYES
•MASCARA •BROW AND LINER •EYE SHADOW
NAIL COLOUR
PURCHASING/ SUPPLY • • • • RAW MATERIALS PACKAGING POS/PROMO FACILITIES AND EQUIPMENTS • INDIRECT PURCHASING • OUTSOURCING PARTNERSHIPS
PRODUCTION OF FINISHED GOODS
EDI • 40 L’OREAL
DISTRIBUTION
SALES • HYPER/SUPER MARKETS • INDEPENDENT PERFUME SHOPS • DEPARTMENT STORES • SPECIALTY STORES • BEAUTY SALONS • PHARMACIES • LOCAL EDI CONVINIENCE STORES • DISTANCE SELLING
FACTORIES e.g. CHAKAN(PUNE) 94% OF THE FINISHED GOODS
EDI • L’OREAL
WAREHOUSES(70)
SUB-CONTRACTORS6% OF FINISHED GOODS
• L’OREAL DISTRIBUTORS
PROMOTIONAL ITEMS
• Improved financial performance • India growth • EPS comparison • Economies of scope • Distribution channel • Brand awareness equity • Strong focus of R & D
• Variety-seeking buying behavior(shelf life of 3 years) • Huge market potential in India. • Growing segment of Indian working women • Increasing purchasing power • Increasing Popularity of branded products • Acquisitions and alliances
STRENGTHS
OPPORTUNITIES
•Counterfeit goods •Grey market •Changing trends •Intense competition saturation in market •Old age generation •Celebrity perfumes highest growth rate THREATS
•Cannibalization •Low market penetration
WEAKNESS
2006
NPAT(in m Euros) CASH FLOW FROM OPERATING ACTIVITIES 2062.1
2007
2657.5
GROWTH RATE(%) 28.87347849
2475.9
2644
6.789450301
REVENUE
CASH AND CASH EQUIVALENTS EPS
15790.1
781.2 2.98
17062.6
1086.7 3.36
8.058846999
39.10650282 12.75167785
In million euro
2004
2005
2006
2007
L'Oréal Paris
Garnier Lancôme Maybelline New York L'Oréal Professionnel Vichy Matrix Georgio Armani Ralph Lauren La Roche-Posay
3826
1786 1704 1202 971 570 429 330 337 217
4055
1875 1811 1250 1000 673 450 359 357 247
4278
1978 1902 1306 1030 772 470 387 379 282
4556
2109 2044 1365 1076 888 494 421 403 323
CORE BENEFITS
BASIC PRODUCT
smell good and to feel good good fragrance
EXPECTED PRODUCT alluring fragrance
attractive and appreciated.
AUGMENTED PRODUCT
stylish bottle
POTENTIAL PRODUCT social identity and self esteem
LOW
HIGH
PHYSIQUE Shimmer, Color
PERSONALITY Young, Cool, Independent
RELATIONSHIP Accessible, Affordable
CULTURE Chic, Urban New York
REFLECTION Stylish, Confident
SELF IMAGE Vibrant, Youthful
Naughty/ Flirty 13% Sexy 9% Glamorou s 13%
Classy/ Sophistica Innovative ted 5% 11%
Chic/Urba n 16%
Single Not working 33%
Married Working 5%
Cool 13%
Young 20%
Single Working 62%
Profile of potential customers
TARGET CONSUMERS
YOUNG FEMALE INDIAN POPULATION BETWEEN THE AGE GROUP OF 16-25
PRODUCT IMAGE:
YOUNG
COOL
CONFIDENT
INDEPENDENT
NAUGHTY
Choice of Television channels
Choice of magazines
Reader's Digest Women's Magazines Educational Magazines Film Magazines Fashion Magazines Business Magazines
Movie channels Hindi soaps
English soaps
Music channels Educational… Fashion channels News channel
0 5 10 15 20 25
0
5
10
15
20
TV Commercials
Magazines
Celebrity Endorsements
THANKS…….
Q &A
doc_879440669.pptx