Fragrances signify who you are, they can influence human thoughts, emotions, moods, behavior and more than 80 percent of the human race can relate them directly to memory. Perfumes, a fragrant liquid, can indicate one’s personality, style and individuality.
According to a study titled Perfume Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023, the global market of perfumes is currently estimated at Rs. 2,000 crore and is projected to grow by 50 percent to Rs. 3,000 crore in the next five years.
According to another report called Global Cosmetics and Perfumery Glass Bottles Market, the sale of perfumes through e-commerce is further anticipated to witness significant growth during the forecast period, owing to the higher adoption rate of smartphones, as they offer convenience, in terms of comparing the availability of a wide range of products and prices.
The ever-growing industry of perfumes has today evolved into a mainstream business in the overall Cosmetics & Personal Care Retail Industry, and with the increasing emphasis on looking good and smelling good, has inched its way into becoming more than just a personal care accessory over the past few decades.
The Indian & Global Perfume Market
The fragrance sector currently occupies 5 percent share of the total lifestyle market in India but is set to grow considerably.
Gujarat contributes to approximately 6 percent of the total perfume market in India.
The rising population, growing urbanisation, higher spending capacity and product diversification by manufacturers are major factors leading to increasing demand for perfumes.
Case Study: Liberty Lifestyle
Taking impetus from the growing needs of personal grooming, and the demand for youth oriented and exotic fragrances is on the rise, Liberty Group – a brand with a history of over 60 years in footwear retail – announced its foray into the world of luxury lifestyle retail with its new business vertical Liberty Lifestyle, in October 2018. Inspired by an unconventional spirit to live free, the new line encapsulates the idea of breaking free from the shackles of the stereotypical thought process and inspiring people to adopt the ‘Scent of Freedom’.
The target consumer for the group’s perfume brand is well-travelled, experienced, yet rooted to Indian values. He is self-made and someone who wants to lead a comfortable life, a millennial who leads life on his own terms yet appreciates the mix of old and new world. Keeping the key audience in mind, the brand gave a lot of thought to the pricing and design of perfumes, both of which play a crucial role in ensuring retail sales, luring consumers and turning them into buying, loyal customers.
It is important that the bottle speaks of the scent contained inside it and that is why a lot of care needs to be put into creating the bottles to the perfume. Liberty Lifestyle’s perfume bottles are created with an aim to appeal to the young millennial as well as Gen Z.
Partnering the French
It is a known fact that French perfumes are considered the finest in the world. France is one of the largest markets for perfumery and cosmetic products in Europe and is hailed as the fashion capital of the world, with established perfume manufacturers based out of here.
France holds a very dominant place regarding international perfume sales, with domestic cosmetics and perfumes brands being recognized among the most influential brands across the globe. The French fragrance market has been ranked second highest in the health and beauty industry in 2016, and it continues to thrive against the backdrop of a highly competitive environment, with Chanel, Dior, and Guerlain occupying the major share. Besides these top three players, more than 40 other different players also operate in the French perfumes market.
This is the main reason that Liberty Lifestyle chose only the best French perfumers to help marry their product’s notes perfectly.
The India Factor
Packaging plays an important part of the aesthetics and functionality of cosmetic and perfumery products and can affect the consumers purchase decision about a particular product. Liberty chose a global look and feel for its bottles, while keeping India’s weather conditions as well as consumer budgets in mind.
Liberty Lifestyle has created unique scents which are crafted especially for Indians – from opulent florals to off-beat ouds, the brand has created a collection that is sure to get noticed. The new Eau de Perfume range consists of twelve fragrances, with names like Flirt, Eden, Bloom, Bliss, Dream, Dusk for women and OUDGold, Legend, Passion, Marine, Rebel, Impulse for men along with an aftershave named Marine we hope to appeal to its customer base, including millennial and Gen Z.
Liberty Lifestyle perfumes are already available at select Liberty stores. The online market is an equally important channel of sales and currently contributes Rs. 148 crore which is projected to grow by approximately 120 percent to Rs. 345 crore. Online market share of this category is currently 7 percent of the total perfume market and expected to increase to approximately 11 percent in the next five years. Liberty fragrances are being sold on reputed e-commerce websites including Nykaa, Purplle, Amazon, Myntra etc. Apart from this, perfumes are also available at exclusive Liberty Lifestyle kiosks in DLF Promenade Mall, Vasant Kunj, Delhi and Logix Mall, Noida.
The brand is looking at building an ecosystem for long term sustenance and is on the lookout for the right technology partners. It has big plans to market the product sufficiently to ensure it reaches the right consumer base and is gearing up to use its R&D capabilities to ensure quality products are being delivered.
Liberty Lifestyle aims to be present at various e-commerce platforms which are relevant to its portfolio and to cover the top 50 cities and 100 large format lifestyle stores and SIS partners by 2019.