The pandemic has accelerated the future into the present. At the pandemic’s start, it seemed that fragrance as an industry would lose its relevance when people were going out less and staying indoors, but the opposite has proven to be true. Owing to Gen Z and millennial mindsets, along with a new generation of beauty standards, the fragrance industry has only gotten more relevant in 2021. It is now poised to grow at a CAGR of 17% becoming around Rs. 5000 Cr by 2024.
Fifty-one percent of India’s population comprises of Millennials and GenZ, and their habits and usages (H&Us) are dramatically different from the rest. “How, when and what to wear applies now to fragrances also, and not just not clothes. The Indian millennial consumer has evolved from using perfumes for occasional wear to making perfumes a part of their daily grooming routine,” says Abdulla Ajmal. His grandfather Haji Ajmal Ali started trading in Oudh and set up a perfumery company ‘Ajmal’ in 1951. He adds that Indian millennials, even in tier 2 and tier 3 cities are aware of the lifestyle trends and don’t even aspire to stick to signature scents. They want to explore and experiment.
During the lockdown, which has impacted the worldview, fragrances (home and personal) emerged as a category that provided sensorial comfort in times of uncertainty and limited mobility. “The trend of matching fragrances to moods is new, but surely one will catch up – thanks to this generation taking their cues from the social media. Five years from now, the Indian consumer will be aware, evolved and discerning about their perfumes,” predicts Ajmal.
Having established a strong foothold in 45 countries, Ajmal Perfumes is looking at India as a key market and is steadily stirring a Fragrance Revolution with its New Horizons of India (NHA) division. A new business approach was introduced, the company pioneered category disruptors and product prices to meet the evolving consumer needs; meanwhile, maintaining stringent bottom-line control through sharp management of variables in operational expenditure.
Talking about the brand’s focus on the ‘Lifestyle to Pantry” strategy, they leveraged Ajmal’s presence through e-commerce and existing self-operating retail outlets and diversified offline channels via Modern Trade, Distribution, Wholesale, Retail, Licensing and Co-branding, Institutional Sales. The company saw a dramatic increase in the distribution footprint in India from 800 points of sale in 2019 to nearly 3000 points of sale in 2020 and aimed for even higher at 5000 by 2021.
This exponential expansion was not overnight or a stroke of ‘pandemic luck’ but the fallout of a very foresighted strategy of making fragrances available at arm’s length of desire by increasing their presence in width and depth. NHA Division has been working tirelessly to introduce fragrances at a price point that is accessible without compromising on the efficacy and quality of the ingredients. The premium segment of fragrances starts from Rs 4000 and above, aspirational perfumes at the sweet spot of Rs. 2000 to Rs. 4000 – the space the company wanted to tap. Since their vision was to create a fragrance revolution in India in the next five years, the first step was to create fragrances that were international in terms of sensorial experience and ingredients but accessible in terms of prices. This move was challenging, but doable as they are an end-to-end or a farm-to-fragrance brand. Ajmal traditionally imported 70% of the products from its state-of-the-art manufacturing facilities in Dubai. During the pandemic, they moved the manufacturing to India to save nearly 35% on various import duties, thereby offering our consumers a better price-value equation and also contribute to ‘Atmanirbharta’.
Early this year, Ajmal Fragrances partnered with House of Anita Dongre. They co-created a collection of fragrances for AND and Global Desi, and a loyal customer base of women across ages and cities. The collection’s highlight was not just coming together of two brands leaders in their industries but the availability of a luxury perfume with high-end ingredients at an accessible price point of Rs 1500-2500. However, their hero project is the launching of ‘MII – a collection of 5 fragrances created for millennials in India’ to celebrate the 70th anniversary of the brand. While imbibing the ethos of a luxury perfume line, this range is available at an accessible price point of 1500 for 100 ml of EDP. Traditionally, Ajmal is known for its high-end ingredients and luxurious fragrances, but the company is constantly evolving its offerings to democratize smelling good without compromising on the quality. Their approach is customer-centric where they pamper their customers with choices, quality, experience and value for money.
