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Scenti-mental In Punjab


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Scenti-mental in Punjab

Prabhjot Singh

Tribune News Service

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Chandigarh, December 14

Now may be just the time for the celluloid Lt Col Frank Slade of the "Scent of a Woman" fame to be in Punjab. This is why: for a mere two per cent of the country's population, Punjabis have just become the biggest buyers and users of perfumes sold in the country — 20 to 25%.

Consumption of perfumes has been witnessing 13 to 18 per cent annual growth. Last year the sale of perfumes in the country was estimated at about Rs 500 crore. Sale in Punjab was almost Rs 125 crore.

"There is growing taste for western sophistication as cosmetics, toiletries and perfumes have been witnessing an unprecedented growth of 50 per cent in the country," says Sanjeev Nayyar vice-president of Alcome Perfumes and Cosmetics, a subsidiary of an American company.

India is the 13th largest market in the world for cosmetics and toiletries. In spite of having the lowest per capita spending on personal care products, averaging just $3.40 per person in 2006, the cosmetics market in India is evolving into one of the most promising worldwide.

"We have set up country's first ever perfumes bottling unit at NOIDA with initial capacity of one lakh bottles of 37 types of perfume. Another unit with four lakh bottles a day capacity will start functioning in NOIDA's SEZ soon," adds Sanjeev Nayyar. Punjab's craze for perfumes, he says, is primarily because of their extrovert and flamboyant lifestyle supplemented by purchasing power. High density of NRIs in the state is also an important factor as all major fast-moving consumer good (FMCG) companies always head for Punjab first before looking for second halt in Gujarat followed by markets in south India.

"It may sound intriguing but 70 per cent of total perfumes sold in the country are from unorganised sector. We are pricing our products between Rs 175 and Rs 495 against market rates varying between Rs 500 and Rs 2500.

Of nearly 600 types of perfumes worldwide, Alcome plans to introduce 100 types every year. "Though there are no patents for fragrance, yet France is their only source," says Nayyar.

"We hope to achieve this by eliminating middle men and retailers. We want to reach consumers directly through network sales," adds Nayyar.

Though consumption of perfumes has been rising rapidly, there are still many sections that do not know difference between a deo and a perfume. Common deo priced Rs 150 in Indian market is quoted in international market at one-tenth of its retail price.

"The idea of launching our products from Punjab," says Nayyar, "emanates from in-depth market analysis by our team revealing the state's huge inlaying potential in perfumes and cosmetic segment. And direct marketing business has shown phenomenal growth of 200 per cent in the past year. Now all major players of the cosmetic industry are launching one or more of their products through direct marketing routes.

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