The fragrance brand plans to grow in India supplying fragrances to FMCG companies and regional multinational companies (MNCs)
New Delhi: Spanish perfume maker Eurofragance plans to enter India in a big way and expand its footprint in the Indian fragrance market the company told IndiaRetailing.
The company has recently opened a creative centre in Mumbai, which is its fifth such centre. The other four are in Singapore, Dubai, Mexico, and Spain. The Mumbai centre has perfumers, evaluators and lab scientists to craft fragrances across various product categories.
The Indian fragrance market is currently valued at around $1.4 billion and is expected to grow at a compound annual growth rate (CAGR) of 15% in the coming years as per the company. In comparison, the fragrance industry in the rest of the world is growing at a CAGR of 5%-6%. This makes India one of the prominent markets for the brand to grow its presence, a top company executive said.
The rising purchasing power of the Indian middle class and the rising demand for grooming products among the young population have fuelled the market for premium fragrances. Also, India has a deeply routed fragrance culture ranging from traditional itra (attar) to modern-day perfumes, due to its rich cultural heritage. The country provides a dynamic customer base demanding fragrances with lighter scents in the south and spicier notes in the north.
“We recognise the tremendous opportunity presented by India’s thriving. This strategic move underscores our commitment to embracing growth opportunities in dynamic economies, cementing our position as a global leader in fragrance innovation,” said Laurent Mercier, chief executive officer of Eurofragance told IndiaRetailing.
The company seeks to grow in India through the business-to-business (B2B) route rather than having its own retail presence, focusing on fine fragrances, home, and personal care categories targeting established and emerging FMCG companies, regional multinational companies (MNCs) and companies that have witnessed growth since the Covid-19 pandemic, Mercier said. The company will also focus on emerging perfume companies that plan to expand in the global markets.
The company plans to enter with products like deodorants to introduce middle-class consumers to the fine fragrances in the new market.
“This strategic move not only enhances our ability to deliver high-quality fragrances but also reduces even further turnaround times for projects that will benefit our customers. With equal emphasis on the home and personal care categories alongside fine fragrances, we can meet and exceed market demands while remaining customer-centric,” said Mayur Kapse, General Manager of the Indian market.
The brand has chosen Mumbai for its first centre due to the city’s reputation as being India’s financial, commercial, and entertainment capital. The company already has key clients and partners within the fragrance industry in Mumbai. The brand believes that Mumbai’s diverse talent can provide it with access to skilled professionals to meet market demands effectively.
Founded in 1990 in Barcelona, Eurofragance manufactures and markets fine perfumes, home care, personal care, and air care for brands worldwide. It initially expanded in Europe then the Middle East and later went to the Far East and the United States. It is currently present in five continents across the globe. The company employs over 450 people, with its employee base nearly doubling in the past five years, Mercier informed. It operates plants in Spain, Singapore and Mexico and works with manufacturing partners in China and India.
