IRF RISING STAR CHALLENGE

2014

WEAR. LOVE. SPREAD!

Team - Excelsior
INDIAN SCHOOL OF BUSINESS

Almeen Arif
Swati Gulati
Viny Nigam

Contents
Executive Summary ...................................................................................................................... 2
Introduction ........................................................................................................................................ 3
The House of Vincenzo ............................................................................................................... 7
Vincenzo India.................................................................................................................................. 9
Ittarati................................................................................................................................................. 12
Competitive Strategy.................................................................................................................. 14
Strategy: Bringing attar to the mainstream perfume market ................................... 20
Competitive Advantage............................................................................................................. 21
Social Impact ................................................................................................................................. 25
Business Model ............................................................................................................................ 32
Supply Chain and Operations................................................................................................ 33
Market Demand Ittarati ......................................................................................................... 40
Marketing Strategy ...................................................................................................................... 42
Segmentation-Targeting-Positioning .................................................................................. 43
Financials ........................................................................................................................................ 52
Expansion Strategy..................................................................................................................... 63
References ..................................................................................................................................... 65

Executive Summary
This report studies in detail, the effects of social impact initiatives undertaken
by the high-end luxury brands on their sales in the Indian consumer market.
The benefits of the social impact campaigns are quantized in form of
incremental revenue due to change in customer preference.
For this project we have assumed a luxury house of brands Vincenzo India, a
wholly independent subsidiary of House of Vincenzo, Italy. Vincenzo India has
2

been operating in India for nearly a decade and is in the business of high-end
luxury products like perfumes, apparel and accessories. It is popular among
the rich and highly educated neo-rich population.
Lately, due to opening up of Indian economy and relaxing of regulations on
luxury goods a lot of foreign players have entered the Indian luxury market
and this is has put pressure on Vincenzo India to create a point of
differentiation for itself. Vincenzo is looking to establish a competitive
advantage over its rivals, who operate with similar product lines in similar
price ranges, by occupying the mind share of todays consumer who is
increasingly becoming socially conscious and concerned.
To this end Vincenzo India has decided to support the declining attar industry
of Kannauj by introducing a new line of product called Ittarati which
embodies the spirit of India with its quintessential Indian origin and fragrance.
With Ittarati, Vincenzo India looks to impact thousands of talented artisans,
farmers and bottlers whose connection to attar making goes back to Mughal
era and beyond.
As part of this business plan, we present how Vincenzo India is able to
influence consumer preference by supporting the dying attar industry and
how it also is able to start a profitable line of product that has never been
done before by any luxury house of brands in India.

Introduction
India is a land of fragrances and the science of perfumery and fragrances has
evolved in this land over centuries since ancient time. The earliest western
historical records date this tradition to as old as 2000 years back when the
Greek text Periplus noted the export of Sandalwood in the first century A.D.
Sandalwood is grown in the South Western region of India and has been
historically used in the making of scent and perfumes for at least 5000 years

as noted in ancient Hindu texts and thus it goes back to Indus Valley
civilization. In the 6th century A.D. when the Arab traders set foot in India they
became one of the major importers of Sandalwood or Tzandana as they
referred it to.
A 2 B.C. perfumers stamp Gandhikanama was found in Kaushambi (in Uttar
Pradesh), which suggests that the business was perfumes existed way back
in 2 B.C. in the northern region. During the reigns of Mughals the trade of
perfumery evolved and flourished in India and Kannauj became the center of
the attar revolution. Its proximity to Agra and the fertile doab region helped in
establishing it as an industrial center and specifically as the mecca of
fragrances. Attar making took off with the eager involvement of the royalty,
especially the princess Noor Jehan who devised several recipes of attar and
made them popular. Several aromatic flowers and spices like Musk, henna,
camphor, sandalwood, oud, saffron were imported from all over India, Central
Asia and other parts of the world. This industry supported numerous artisans,
farmers, bottlers and traders fetching high returns for centuries.
This has now changed. Indian attar industry is on the verge of extinction, with
almost 90% of the attar makers going bust or shifting to supplying fragrances
to alternate markets like Gutkha and Pan Masala. The spiraling costs of raw
materials like sandalwood and unavailability of skilled labor, the existing
factories are under pressure to diversify or just shut shop bringing an end to a
glorious Indian tradition.

Vincenzo India sees an opportunity in this where it can make a large social
impact and also harness the industry resources to start a totally new category
in its line of offerings. It aims to make it a win-win situation for all parties
involved.

Understanding the Indian Perfume Market

Fragrances are a big business if only you could smell Anonymous.

It is true and we believe this, looking at the staggering INR 7000 Crore Indian
perfume market, which is growing at 40% per annum. Others capture the
biggest pie of the cake or small time players at 52.9 % and Unilever controls
around 40.1% of this market. The rest 7% of it is dominated by foreign luxury
brands who have capitalized on the increasing purchasing power of the
prosperous middle class in India.
The major categories of perfumes sold in the Indian market include:

Indegenous
Perfumes.

Ayurvedic
essential
oils.

Attar.

Branded
Perfumes.

Foreign
Luxury
Brands.

Indigenous Perfumes: Around 50% of the perfumes sold in the Indian market
are accounted by the indigenous fragrances sold in the form of perfumes in
standard denominations of 100 ml and 200 ml. These are generally nonbranded perfumes and use cheap and sub-standard ingredients that make
them affordable and also popular among the lower middle class and middle
class. Most of the indigenous perfumes are produced by small time cosmetics
manufacturers who supply to local kirana shops and departmental stores.

Ayurvedic essential Oils: These fragrance products are generally produced by

players like Himalaya, Forest Essentials and independent ayurvedic products
makers. The ingredients are mainly herbal and are derived from natural
products. The main target segment is the tourists and middle class buyers
across India. Some of these items have also been made into luxury toiletries,
soaps and incensed candles to name a few.

Attar: It is the quintessential Indian perfume that is known to be spirit and

chemical free and is made from natural ingredients like rose, sandalwood,
agar wood, spices and Oudh. It has a huge market among the traditional
Muslim population for it is alcohol free. It is also a popular purchase among
the visiting tourists. Attar is also exported to China, Middle East and Europe.

Branded Perfumes: In this category the biggest player is HUL (Hindustan

Unilever), which has a market share of almost 40.1 % and has the highest
penetration that even reaches the rural markets. They have a range of
fragrance products that span from cheap to high cost options and are
available through varied distribution centers such as departmental stores,
malls, hypermarkets etc.
Foreign Luxury Brands: This category is the fastest growing category with a
cumulative turnover of INR 600-700 Crores per year with a growth rate of 25%
year on year. The leading brands are Armani, Azzaro and Burberry closely
contested by other leading Luxury brands mainly from Italy, France and
England. These players are new to the Indian market but are rapidly
expanding their footprints across the country with their distribution channels in
7 Star hotels, Hybrid malls and exclusive stores. They charge high premiums
on their products, which are mainly designer perfumes with a price range from
INR 2000 to INR 500,000. Vincenzo is a player among the Luxury perfume
makers with an annual turnover of INR 100 Crores.

Salient Features of the Indian Perfume Market:

Around 60% of the Indian perfume market is dominated by male

fragrance products.

The deodorant and roll-on market is growing at 55% CAGR.

Unorganized sector accounts for nearly 50% of the Indian perfume

market.

Teenagers are a significant target segment as they spend between INR

500-1200 only on fragrance products.

Even though the sale of perfumes is not seasonal, most of the sales
occur between the warm months of March and September due to
increase in fragrance product usage during summers to counter body
odor.

Leading perfume brands: Armani, Azzaro, Burberry, Chanel, CK1,

Vincenzo and Escada.

Leading deodorants: Park Avenue, Gillette, Brute, Nivea, and Set Wet
etc.

The increase in demand is due to Tier I and II cities.

Attar, the traditional Indian perfume is largely under decline with the
costs of raw materials going through the roof, especially the Indian
Sandalwood, which now costs around INR 70,000 per Kg.

There has been a considerable shift of consumer focus towards the

herbal and chemical free cosmetic products, which has also
percolated, to perfumes and fragrance products and players like Forest
Essentials and Fab India have tried to gain the first mover advantage
by collaborating with small time producers of fragrances.

The House of Vincenzo

Luxury. Comfort. High-end fashion. These three have been the basis of
Vincenzos products since the companys foundation. Vincenzo has created
intricate, class-apart luxury goods, each with a flavor of tradition in it. Its
closeness to tradition along with the authentic work of its artisans has brought
some of the most intricate contemporary pieces to the world luxury market.
The exemplary sense of style within each and every member of the Vincenzo
team is a key factor in its high growth in a short period of time since its
inception in 1971. Today, the House of Vincenzo has made a mark around the
world in apparels, fragrances, shoes and leather goods. Vincenzo Group
operates in more than 30 countries currently including US, France, Italy,
Australia, New Zealand, India.

Vincenzos Ideology

The companys vision is to be synonymous with the art of luxury

fashion while delivering a sense of culture in each piece of creativity.
Vincenzo has always aimed at being a responsible corporate. In the
past, it has achieved certifications to improve its environmental footprint.
It expects to achieve similar and higher goals in the future as well.
Vincenzos Luxury products

Customer Centric Model

One of the differentiating factors that Vincenzo has built for itself in creating its
brands is giving the customers maximum power. Vincenzo leaves no room for
errors when it comes to its customers. The first thing that the company
teaches each new employee is to treat customers like their bosses. Each
flagship store includes royal dressing rooms, which a 5 star catering service
for customers. A personal assistant helps you choose the right collection that
suits your personal style. In case of unavailability of a particular size or color,
you are personally intimated by the stores manager about its arrival and your
next expected visit is kept noted.

In one of the recent surveys done by a leading fashion magazine, Vincenzo

was the number one in customer satisfaction and hospitality. It quoted one of
the customers saying, Vincenzo has taken luxury to another level. Just being
at the store makes me feel special.

Vincenzo India
Vincenzo India has been one of the key subsidiaries of the Vincenzo group. It
is a independent subsidiary of Vincenzo and takes its financial and strategic
decisions on its own without much intervention from the parent company in
Italy. One important advantage of this setup is that the Managers in India
have higher flexibility and risk taking ability as they are more aware of local
market conditions and consumer demands. Vincenzo India was launched
keeping in mind the high demand of luxury goods in the emerging markets in
the past two decades. The rising income of the Indian middle class along with
the IT boom has created immense disposable wealth especially in the hands
of the dynamic young Indians and that makes it an attractive market for luxury
goods. Also, other countries likes China, Brazil etc. already had an
established luxury market where Vincenzo would have faced high competition
and further growth might not have been profitable.

The Birth

Vincenzo India was launched in 2000. It opened its first flagship stores in
Delhi and Mumbai in 2000. Vincenzo India was located in the most
sophisticated localities in the two cities and attracted large number of footfalls
in those areas. By 2005, the concept of hybrid luxury malls had come into
picture and it was evident that the location of store was not everything. It
meant that it was far more important to have a store where the largest
numbers of potential customers are likely to be browsing. That period saw
large number of luxury brands moving into these hybrid malls coming out of
the confines of the 5-Star Hotels.

Vincenzo

Indias

growth

model

over

the

years

The recent turnover of the company has been close to 100 crore INR and has
seen a growth rate of 25% per year. Vincenzo India caters to a very niche
segment of people in India with its major customers situated in the the prime
cities of the country. In Delhi, Vincenzo shares space with the leaders in
luxury goods situated in one of the major luxury malls in the country. Vincenzo
currently has retail locations in the following cities.

House of Vincenzos retail locations in India

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Of all the cities, Delhi and Mumbai have the highest sales for House of
Vincenzo. Vincenzo India currently caters to the luxury segment with the
following products and services:

Apparels

Fragrances

Leather Goods

Shoes

Accessories

Vincenzo s apparels make up for the most amount of revenue for the brand in
India. In fact, they compete with some of the leading brands in the luxury
industry present in India. In the Apparels sector Vincenzo covers both men
and women wear. But it is the fast collection of the womens wear that have
made the apparel section such a success. Fragrances also form a big chunk
of the pie but not as much as the apparels. Vincenzos worldwide launch of
Mirage created a buzz in the worldwide fragrance industry. Leather goods
consist of Italian leather handbags usually customized for the loyal clientele

11

in India. This is another unique aspect of Vincenzos market strategy. It treats

its customers like kings and queens. Accessories consist of various luxury
items ranging from scarves and sunglasses to stone studded pens and
broaches.

Vincenzo India's product segmentation

Apparels, 40%
Shoes, 25%

Leather goods,
15%

Fragrances, 20%

Vincenzo looks forward to growth opportunities in India by increasing its client

base. Also, Vincenzo aims to tap in the legacy of the rich Indian culture and
craftsmanship to tighten its claws in the Indian market.

Ittarati
House of Vincenzos fragrance line covers as much as 20% of the companys
revenues. With the launch of Mirage last year, the perfume sales in India
have increased nearly 30%. The high demand in the fragrance industry is the
right opportunity for Vincenzo to launch a product that magnifies the
association of the people to their heritage. Ittarati Wear. Love. Spread!
Derived from the Arabic word attar, Ittarati would help us achieve just the

12

same. It is the right mix of the heritage, aroma, glamour and but, of course,
the essence of luxury. Ittarati not only has a potential to win the Indian
fragrance market but also revolutionize the world of fragrance with its unique
aroma that combines both the strong attar essence and the subtlety of a niche
perfume. This will arguably be the first time when a super luxury lifestyle
brand in India will adopt the attar and introduce a completely Indian product
line that represents the rich Indian heritage and creates a place it deserves in
the high end perfume market in India and abroad. Apart from the exclusive
and unmatched fragrance, Vincenzo will also strive to preserve the art of
making attar through Ittarati. Ittarati will be manufactured in the perfume city
of Kannauj, which has had a rich tradition of perfumery since time
immemorial. The bottles will be sourced from the traditional attar bottle
makers from Farrukhabad in UP and everything will come together in
Vincenzo Indias testing and packaging facility that will ensure the quality of
attar sourced and then bottle and package Ittarati under stringent quality
checks meeting Vincenzos world renowned standards.
In a report called -Small Aint Beautiful Point of View on India Luxury
Market, presented by an executive of Bain & Company, he mentioned Indias
traditional luxury market which includes personal luxury goods such as
watches, jewelry, apparel, accessories, fragrances and cosmetics as well as
non-personal items such hotels, cars, boats, yachts, furniture and fine dining
is valued at about US$6 billion and growing at 15% to 20% a year.
Of this, the personal luxury goods segment is valued at US$1.5 billion.
The Indian fragrances market had total revenues of $227.4 million in 2012,
representing a CAGR of 19.4% between 2008 and 2012. 2012 saw a huge
increase in the number of units consumed.
It was also observed that the youth (people under the age of 30) were the key
drivers of the demand in the country. By the end of 2017, although the
performance of the market is forecast to decelerate, with an anticipated
CAGR of 17.6% for the five-year period 2012 2017, the market value would
almost to be at $510.6 million by then.

13

A first step to House of Vincenzos vision of being one of the premium socially
responsible luxury brands is the plan to be involved with the Indian Attar
industry.

The industry that is very close to being dead can witness an entirely new
direction with Ittarati. Hundreds of craftsmen can find employment with Ittarati
being manufactured in India. The expertise of our team members put in the
making of a luxury product would help us achieve a hybrid between the legacy
of the yesteryears and the sophistication of the modern world. Ittarati being a
product targeted to a niche segment would bring us premium margins. This
would just add up to the upliftment of the Indian artisans and craftsmen.
We look at Ittarati as one of the first luxury fragrances ever produced in India.
It is not only a medium for us to enter into the Indian luxury market with a
completely different and social impact but also, it is the product that would
bring India as one of the finest luxury fragrance producers in the world.

Competitive Strategy
Luxury Perfumes in India - Industry Analysis
Fragrances are a part of the DNA of India; consumers love perfumes and
compared to other countries, they do know what a good perfume is.
-

Marc Jourdan-Gassin, VP, Fine Fragrance International, Firmenich.

India is no stranger to luxury. The stories of the luxurious and lavish lifestyle
of erstwhile Indian royalty and business houses have inspired and continue to
inspire countless Indians to appreciate and aspire for that lifestyle. A recent
luxury brand survey conducted by Nielsen Co. has ranked India third after
Greece and Hong Kong in the list of most brand-conscious countries in the
world. More than 35% of Indian respondents said they spend money on luxury
brands. The advent of luxury brands in the Indian retail scene has opened
new avenues for Indians aspiring to live the lux-life. Brands like House of
Vincenzo enjoy great popularity amongst the luxury brand conscious

14

consumer, with customers vying to buy the latest trends set by the Italian
business house.

The growing economy has empowered the middle class of India with a higher
purchasing power, and the love of luxury innate in all Indians has laid fruit in
the rise of the Indian luxury market. Estimated at $5.8 billion (nearly Rs
28,500 crore), this market has shown a growth of more than 15% in the past
three years. Perfumes as luxury accessory buys are one of the most popular
must-have items on the Indian buyers' list. According to industry estimates,
the size of the total domestic luxury perfume market is around Rs 600-700
crores and is growing at a rate of 20-25 % year-on-year.

The domestic luxury market is mainly dominated by international luxury

brands, with no Indian players in the scene. In the market where brands
command premium over price and with similar variety on offer, brands need to
look for differentiating factors, which make their product stand out from the
competition.

Industry Analysis

House of Vincenzo plans to launch Ittarati- a line of ultra luxury perfumes

inspired by Attar/Ittar. As Vincenzo India plans to launch attar into the
mainstream luxury perfume market, following are the various industry
analyses:

1) Analyzing the Indian luxury perfume industry: This analysis will focus
on the Indian luxury perfume industry in general
2) Analyzing the Attar industry in India: This analysis will focus specifically
on the Attar industry in India

1) Analyzing the Indian luxury perfume industry

15

The five competitive forces influence profitability in the Indian luxury perfume
industry:

Threat of New Entrants: As the luxury market space in India is booming, more
and more luxury brands look to occupy mind space in the minds of the Indian
customer. Each of the competitors has an established set of suppliers abroad
and it is easy for one and all on capitalize on that. All the luxury brands
currently operate similar distribution networks. Customer loyalty is low as
even though customers focus on buying a luxury brand, there is no clear
preference in choosing one luxury brand over the other. Rather, it intangibles
like the novelty and fragrance of the perfume, and tangibles like the make and
shape of the bottle that determine the sale of the perfume. Hence the threat of
new entrants is high.

The power of suppliers: As most of the manufacturing of the perfumes for the
Indian market is done collectively by the luxury brands themselves, these
brands leverage their existing supplier base to source materials for perfumes.
16

There is no separate supply network dedicated specifically to the Indian

perfume market. Hence the suppliers hold less to no power in the Indian
luxury perfume industry.

The power of buyers: In the Indian luxury perfume space, we consider the
following buyers:

The consumer: Even the though the Indian consumer is predominantly price
sensitive, when buying luxury perfumes they willingly pay the premium. Also
there are low switching costs between perfumes of different brands. However,
none of these factors raise the power of the buyer and they cannot negotiate
leverage on the price of a luxury perfume. These consumers are not bulk
purchasers; they cannot significantly affect the products costs and capacity,
and therefore its price.

The intermediate customers: This refers to the departmental chains and retail
shop owners who purchase perfumes from the luxury brands to stock and sell
in their retail spaces. These customers buy in bulk and display the latest line
of perfumes. They also influence the actual sale by offering perfume trials.
These intermediate customers negotiate contracts with the luxury houses and
earn a distribution margin, however in the overall scheme of things they do
not exert much power over the luxury brands prices in the Indian market as
they are just a small arm of a big seller network of the international brands

Hence we conclude that the power of buyers is low.

The threat of substitutes: One possible substitute for international luxury

perfumes could have been the Indian perfume brands, but as the Indian
perfume scene is unorganized and has no luxury players in the fray, this
threat is minimal. Also there is no substitute to perfumes as a consumer
good.
Rivalry among existing competitors:

The intensity of rivalry among

competitors is high as they are many players in the industry and all of them

17

have substantial size and power. Each of these luxury brands focuses just as
much on brand equity and on leveraging that. As the Indian luxury perfume
industry is booming, each of the players operates on similar strategy of brand
premium. Hence there is high rivalry among competitors.

From the analysis of the Indian luxury perfume industry, we conclude that the
industry is attractive and profitable, and brand extension in this industry would
be a sound idea. House of Vincenzo already has a presence in this industry
through its Indian arm Vincenzo India and will leverage that to launch Ittarati
in the Indian luxury perfume space.
2) Analyzing the Attar industry in India

The five competitive forces influence profitability in the Attar industry of India:

Threat of New Entrants: The attar industry in India is largely an unorganized

industry. Due to high cost of raw materials like sandalwood oil, and low
revenue numbers of the existing players, threat of entry by local players is
currently low. However, international brands can enter the attar industry but

18

currently only House of Vincenzo is exploring that option. Hence we can say
that threat of new entrants is low.

The power of suppliers: Supplier power is very high in the case of attar
industry as the procurement of sandalwood oil is long drawn out and
expensive process. There is no real substitute to sandalwood oil, if you want
to make premium, high quality attar. There are strict regulations that govern
sandalwood trade. Hence the power of sandalwood suppliers is high.

The power of buyers: As there is no organized retail of attar, there is more

supply than demand of attar. Furthermore, there are no brands, which ensure
quality of the attar that the customer buys. All these factors increase the
reluctance of the buyer to buy expensive attar and buyers succeed in
negotiating effective prices for the same. Hence we can say that the power of
buyer is high.

The threat of substitutes: Perfumes can be effective substitutes of attar. Even

though there are several factors that clearly distinguish perfumes from attars
(like alcohol content), the demand for attars is less and people can settle for
perfumes in absence of good quality attar. Hence we conclude that the threat
of substitutes is high.

Rivalry among existing competitors: There is a lot of rivalry between existing

attar manufacturers as the demand is low and operating costs are very high,
hence making a profit is difficult. Hence the rivalry among existing customers
is high.

Hence we conclude that the attar industry, as it stands in India today, is

unattractive and does not appear to be very profitable.

19

Strategy: Bringing attar to the mainstream perfume

market
From the industry analysis of the Indian luxury perfume industry and the attar
industry in India, we realize that where the Indian luxury perfume industry is
attractive with opportunity for growth, the attar industry is not so attractive.
Historically in India, attars have been a symbol of luxury and royalty. Even
now in Middle Eastern countries attar represents high-end luxury. But studies
suggest that attar making in India is a dying art. The House of Vincenzo aims
to revive this ageless art of making luxury fragrances and bring it to the
mainstream perfume market, thereby converting an entire parallel industry
into a supplier channel.

Strategic Gameboard

In bringing attars to the mainstream perfume market Vincenzo India will bring
about a new game strategy, focusing on making perfumes with a difference,
which in turn will largely impact the society. The impact ranges from providing
employment to numerous artisans to introducing a supply chain format in a
completely unorganized market.

With Ittarati, Vincenzo India will focus on introducing this unique line of hand
made, traditional luxury fragrances into a small market segment. This will later
be expanded and diversified internationally in a big way.

Ittarati
New
Game

Same
Game
Selective

Across-the-board

20

With their selective, new game strategy, Vincenzo India hopes to:

1) Introduce a novel variety of perfumes, unseen by the consumers

anytime before.
2) Create new and/or different customers for branded luxury attars
3) Successfully boost a dying attar industry by reinventing it as a supplier
to mainstream luxury perfume industry.
4) Bring about a social impact through employment and standardization,
and capitalize on being a socially responsible business house.
5) Establish longer-term advantage and aim for higher profits due to
product differentiation in a competitive market

Competitive Advantage
With Ittarati, House of Vincenzo hopes to achieve the following competitive
advantage:
1. Improve brand equity by establishing Vincenzo as a socially
responsible house of products that places great importance in
its values of inclusive growth by enriching the lives of the people
involved in the lower end of value chain.
2. Capitalize on a 5000-year-old premium, luxury tradition that
completely aligns with the companys strategy of differentiating
itself along dimensions valued by customers (luxury, premium
tag) to command a higher price.
3. Gain a first movers advantage in attaching a premium brand
name (and consequently a sense of product authenticity and
quality) to a currently unbranded Attar industry, thereby
erecting a high barrier to entry for competitors by tapping into the
40000+ strong network of artisans, suppliers and manufacturers
4. Establish a competitive advantage through a differentiation
strategy by expanding into a line of Attar based products.
Projected market potential of the fragrance industry globally is
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$45 billion in 2018 ($510.6 million in India) and that of the attar
industry is $250 million in India itself. Premium attars sell at prices
starting from Rs10000, well into lakhs of rupees. Reports suggest
an increasing demand for floral and exotic fragrances in India and
abroad
5. Carve a niche for itself in the natural products market, as Attar is
100% natural, chemical and alcohol free perfumes
6. Establish

an

organized

supply

chain

in

the

currently

unorganized attar industry and hope to achieve dominion over it,

thereby ensuring longer-term competitive advantage.
7. Rejuvenate the dying art of attar making by changing the
business model by converting the manufacturers of attar in the
attar industry into the suppliers of attar in the luxury perfume
industry.
8. Introduce standardization and a strict quality control into the
attar making process, thereby reinventing the Indian luxury
perfume market. Currently one of the chief challenges of
manufacturing perfumes in India is a lack of quality control
regulations. This prevents us from establishing a foothold in the
international market.
9. Revive the complementary industry of glass making by
providing intricate glass designs and sourcing glass bottles from
glass making artisans.
10. Be the first to manufacture high-end luxury products
manufactured in India for the Indian market.

Vincenzo India Value Chain for Ittarati

Primary Activities
1) Inbound Logistics
Vincenzo India will set up onsite quality checks and once the raw
materials meet the quality benchmark they would be shipped to the
factory warehouse, from where the raw materials would be distributed

22

to the attar makers. Similarly, sandalwood oil sourced from Australia

will be procured and stored at warehouse and then distributed

2) Operations
Operations activities will involve a high degree of standardization and
quality control to ensure that the quality benchmarks set by House of
Vincenzo are met. Attar and glass bottles will be sourced from attar
makers and glass bottlers respectively and the final product will be
packaged at the factory

3) Outbound Logistics
Once the attars are packaged they would be stocked and the
distributed to the various retailers

Support Activities
1) Firms structure, strategy and leadership:
Ittarati will be managed by Vincenzo India, the Indian arm of the House
of Vincenzo. Vincenzo India is an independent subsidiary of House of
Vincenzo (an Italian luxury giant) with a turnover of over 100 crore and
has been in operation for more than 10 years. Vincenzo Indias current
strategy is to come up with an innovation product, which would bring
about a huge social impact that would differentiate House of Vincenzo
from its counterparts.

2) Human Resource Management:

Apart from the regular office setup, Vincenzo India would contract a
team of master perfumers to analyze and customize the attars
corresponding to the current market trends. Along with perfumers
would employ the following staff

23

1) On site quality control specialists-These would operate out of the

raw material supplier site where they would ensure the quality of the
raw materials being shipped.
2) Factory Quality Control Specialists They would monitor and check
the quality of the incoming attar and be specialists in the testing
facilities set up by Vincenzo India at the factory site.
3) Labor Staff for bottling, packaging and branding: They would
operate the automated setup of bottling attar, packaging and
branding into the final product
4) Glass art designers: They would be experts in the field of designing
innovative glass perfume bottles inspired by Mughal art.
5) Glass Testing Specialists: They would be experts in testing the final
quality of the glass bottles that Vincenzo India would have received
from the glass manufacturers, ensuring that the benchmarks set by
the House of Vincenzo are met.
6) Liaison Staff: They would ensure smooth operations among the
factory, Vincenzo India, raw material suppliers, glass bottle
suppliers and attar makers.

3) Technical Development:
A state-of-the-art testing facility for attars and glass bottles would be
set up at the bottling and packaging factory. The bottling, packaging
and branding division will be completely automated.

4) Procurement:
Vincenzo India will procure raw materials for the attar makers and
glass manufacturers. Vincenzo India will keep an inventory of
packaging and branding material for Ittarati.

To summarize, Vincenzo India aims to add value to its operations by:

1) Procuring raw materials on behalf of the attar makers thereby creating

economies of scale and reducing threat of suppliers to attar makers

24

2) Ensuring

quality

control

mechanisms

and

standardization

of

intermediate and final product.

3) Automating the process of bottling and packaging.
4) Procuring cheap sandalwood oil from Australia and Africa, thereby
obtaining a cost savings of 50-75%
5) Setting up an organized supply chain management system and thereby
setting up barriers to entry among new players and establishing a first
movers advantage.

Social Impact
Saving Kannauj
Kyun Meri Chandni Mein Phirta Hai Tu Pareshan
Khamosh Soorat-e-Gul, Manind-e-Bu Pareshan - Iqbal
[Why do you roam about in my moonlight, so worried,
Silent as a flower, drifting like perfume?]

These simple couplet by Iqbal encapsulates the present situation of the

erstwhile perfume capital of India Kannauj. Once a jewel in the Mughal
kingdom , Kannauj was a centre of innovation and culture with its medieval
distilleries producing the most exotic fragrances , called Ittar or Attar for the
elite and nobility of the great Mughals. Begum Noor Jehan herself researched
and introduced some of the best practices of perfumery in what can be called
as the sleepy towns Golden Age.
Now its just a trace of the glory that remains, 600 out of 700 distilleries from
the 90s have shut shop, workers and artisans have moved onto take petty
jobs or just migrated to the bigger cities for want of a consistent livelihood,
and those still hanging in there are finding it hard to sustain. The onslaught of
cheaper paraffin based attar and increasing raw material costs along with the
waning charm of Indian traditional perfumery among the growing young
population of India is too much to handle for the small time players of
Kannauj.
25

The reasons for such a decline of Kannaujs Attar industry are listed as
follows:

Increasing

costs

of

essential

Raw

Material

like

agar-wood,

sandalwood etc has shot up the manufacturing costs of Attar. It is

tough for small players in this largely unorganized sector to source the
original ingredients.

Availability of cheaper but sub-standard substitutes like paraffin based

base has brought down the quality and now they pose a threat to the
real attar makers.

The traditional customer base in the Indian market has been the
traditional and the old connoisseurs, with time this number has
dwindled. The increasing costs have pushed attar out of reach of its
traditional customer base.

As per a recent study by ASSOCHAM, the young prefer branded

perfumes and are ready to pay the big bucks for luxe brands like
Armani, Azzaro and Burberry which also are the top selling perfume
brands in India. This is boosted by a trend of male grooming in urban
India, as per the report.

Vincenzos Role

As a luxury brand , Vincenzo can popularize the use of attar among

the urban and neo rich with its alternate line of perfumes Ittarati.

Vincenzo can command a high premium on its range of perfumes and

that is a boon for the suppliers , artisans and farmers as the high
margin from the luxury product can be used to source genuine raw
materials despite the spiraling cost.

Attar manufacturing and sales have been largely unorganized,

Vincenzo can design its own supply chain and use the luxury industrys
best practices to streamline processes and boost margins for the whole
value chain of the business system.

They can also invest in R&D in areas that demand immediate attention
like increasing the yield of usable essential oils from agar-wood etc.

26

Most importantly they can use mainstream marketing techniques like

advertising on TV and print for the Ittarati and create a presence in the
minds of modern consumers.

Constitute partnerships with the local manufacturers after implementing

standard quality checks and thus save on initial investments and also
supporting the dying distilleries.

Employment

Every Attar factory employs around 200 skilled artisans directly who are
involved in the process of manufacturing attar throughout the process
lifecycle. This is referred to as direct employment. The table below lists the
projected employment numbers from 2015 till 2019.

Direct Employment

Number of Factories

2014

200

2015

1400

2016

1600

2017

2000

10

2018

2400

12

2019

3000

15

Bottlers

Bottling of attar is as important as the attar itself. Ittar by tradition has been
the scent of the royalty and it was only befitting that such exclusive scent be
packaged in the most intricate vials and bottles.
The attar bottles are a work of intricate artistry and traditionally the artisans of
Farrukhabad and eastern Uttar Pradesh have been involved in designing and
producing bottles for attar. With attar industry caught in a downslide the
bottlers are having a tough time sustaining their business and craft.

27

Vincenzo can choose to source the bottles for its luxury line Ittarati from the
traditional bottlers and thus preserve the old era charm of attar in the
intricately designed bottles, something the aware consumer would appreciate.
This would also provide a certain source of income and business opportunity
to the bottling artisans of Farrukhabad.

Empowering Farmers

Attar is an interesting product which has numerous varieties and whose

ingredients are sourced from almost every corner of India. In many ways it is
a quintessential India product. One of the most popular flavours Oud is
sourced from the North-Eastern states where the local tribes farm and supply
this to attar makers in Kannauj. Equally important is the contribution from
Kashmir which supplies Saffron and mint. Khus which is also an a classic
attar ingredient is sourced from Bharatpur in Rajasthan while chameli, rose ,
kadamb, jafrani, gandaand henna is sourced locally in and around Kannauj in
UP. Kewra comes from the coastal areas of Burhanpur and Ganjam is
sourced from Orissa.

Region/State

Raw Material

Kashmir

Saffron,Mint,PinyWood

Uttar Pradesh

Rose, Other Flowers

Himachal Pradesh

Rose

Rajasthan

Khus

Andhra Pradesh

Raat Rani

All North-Eastern States

Spices & Herbs

Karnataka

Sandalwood

Assam & Manipur

Agarwood/Oudh

The attar industry has been largely unorganized due to which the farmers
involved in the supply of raw materials from across the countries heavily
depend on the middlemen. A lack of consistent demand also creates

28

uncertainty in the cash flow. Vincenzos entry into this sector would eradicate
the middlemen and ensure that these farmers and other suppliers get a better
price for the raw material supplied.

This will also ensure that a lot of remote areas like Kashmir and tribal areas in
the North Eastern states will become part of a growing industry and this would
thereby also lift their living standards. For example, a significant part of
Manipurs rural population thrives on agarwood farming which is a prime
ingredient for the classic oud attar, it is as expensive as sandalwood and
costs INR 50,000 to INR 70,000 per kg. Due to the high costs small-time attar
manufacturers have avoided buying agarwood and thus Manipurs rural
economy has taken a hit. With luxury players like Vincenzo as customers,
these farmers can produce with certainty and also receive a better price for
their produce while the luxury player can ensure that the final product is of
best quality which in turn adds to their premium.

Attar Tourism

Move aside Health Tourism, Education Tourism and Sports Tourism here
comes the Attar Tourism! One most interesting and creative way in which
Vincenzo can boost the economy of attar producing towns is by promoting
what we call is Attar Tourism. A Google search of Kannauj results in
hundreds of results about this sleepy little towns age old heritage of
perfumery. There are folklores and fables about how the precious princesses
of the Mughal Kingdom experimented with the most expensive and rare oils
and exotic flowers to design and invent their own brand of attar that live to this
day. There are distilleries that have been run by families who have not left this
business for centuries and still use the same old degh and bhapka
equipments in their rustic factories to derive the rich fragrance of attar.

This will appeal to both domestic as well as foreign tourists and consumers. A
win-win situation, a few benefits of which are listed below:

29

This idea will not only help the local artisans, farmers and
manufacturers but also help boost other industries like hospitality,
transport etc and indirectly help generate employment outside the
perfume industry.

Guided tours to Vincenzos plants and partner heritage distilleries will

create what we can call The Vincenzo Experience. This will be true to
the aim of showcasing Vincenzo India as a genuine Indian subsidiary
that cares.

It will also act as a Market Entry Barrier in the long term for other
brands as this initiative woul be identified as part of the lifestyle that is
associated exclusively with Vincenzo India.

On the lines of lifestyle brands like Ducati and Harley Davidson it will
most definitely contribute to the Brand Equity of Vincenzo which in
turn will give leverage for higher premium on its products. A win-win
situation indeed.

Attar Making

Source: travel.cnn.com

30

Impact in Numbers (Assumed and Estimated for the year 2019)

Category

Direct Impact

Potential Impact

Artisans

3,000

20,000

Farmers

10,000

80,000

Bottlers

100

5000

Distilleries

20

100

Attar Tourism

10,000

50,000

Looking at the figures of 2015 we can see that Vincenzos plants will
directly employ around 3000 Artisans in its plants thus generating
immediate employment.

There are around 10,000 farmers in and around Kannauj, Himachal

Pradesh, Kashmir, Assam , Manipur , Orissa , Karnataka and other
parts of India who are directly involved in supplying raw materials to
Kannaujs attar factories. Due to downslide in the attar manufacturing
these farmers have been living in uncertainty. Vincenzos investment
would provide a consistent cash flow and also help with R&D to
improve crop yield and more.

Not many initiatives bring together Kashmir and the rest of India
together like this one will as it harnesses an age old relationship
between Kashmirs saffron supplying farmers and Kannaujs attar
makers.

Another important section are the bottlers who have also been part of
this industry for equally long time as the artisans themselves. They
shall also benefit from an assured source of revenue.

31

Business Model
Following shall be the model followed by Vincenzo India for the production of
the Ittarati line of attars. A factory, with state of the art testing facilities and
sophisticated warehouses, will be set up in Kannauj district of Uttar Pradesh,
where there is proximity to attar makers.

32

Supply Chain and Operations

The detailed ideas and process flow are as follows:
Sampling and Flavor Identification
Quality Control Relative importance
Sourcing raw materials for Attars
Manufacturing by Attar Makers
Testing by Vincenzo India
Designing Attar Bottles
Sourcing Attar Bottles
Bottling and Branding Attar by Vincenzo India

1. Sampling and Flavor Identification

The story begins with a Perfumer/Nose from Vincenzo India who will analyze
the latest trends of the Indian fragrance market and identify the compositions
of the top selling fragrances of the Indian Perfume Industry

These perfumers would then be introduced to various samples of attars from

all parts of India and a set of best match fragrances would need to be
identified. These perfumers will then be working closely with the attar-makers
trying to customize the attar essence.

Additionally, business development teams at Vincenzo India will evaluate the

age-old famous attars of India, which have historical or royal relevance.
For Example: The Assamese Oudh is one of the most cherished attars of the
world. The Rose Attar, made from the roses of Kannauj, U.P was discovered
and developed by the Mughal Queen Noorjahan.
These fragrances will also be evaluated specially by the perfumers and be
included in the Ittarati product line as Vincenzo India can capitalize on their
historical significance.

33

2. Quality Control - Relative Importance

Attar, The Fragrance of the Royals, has been historically made with the
finest and purist of all materials, with as much detail going into the actual
process, as into using the highest-quality natural ingredients.

For the process of making attars, the industry being largely unorganized,
usually attar makers source flowers locally. The farmers are unaware of
proper cultivation practices, and the attar makers do not exercise enough
control over their suppliers to ensure the right crop at the right time of the
year.

Currently there are a lot of local attar manufactures producing attars using
synthetic replacements for the natural ingredients due to rising costs and
difficulty in procurement of raw materials.
For example: Paraffin wax is being used as a substitute for sandalwood oil,
which is quite costly and difficult to procure.

But the factor that sets apart Attar from other perfumes is the purity of
ingredients, and therein lays the premium factor.

For a user to pay a premium price for a House of Vincenzo product it is

important for them to believe that the quality of the material procured and the
attar being bottled is of the highest order and is safe to use.
Plucking flowers at the right time, so that they retain their scent; using the
highest quality of sandalwood oil as a base, so that the attar improves with
time and other quality measures are paramount to distinguishing Ittarati from
the local players. Further, it is equally important to check the purity of the final
attar produced before a premium brand like House of Vincenzo puts their
name on it.

34

Hence a lot of the operations of Vincenzo India will focus on quality measures
for Ittarati. There will be quality checks at each stage of procurement of raw
materials and after attar makers bring the finished attar back to the factory.

3. Sourcing Raw Materials for Attars

The aim of Vincenzo India will not be to manufacture the attars itself, but to
enable the traditional attar makers to make high-quality attars.

In aid of this, Vincenzo India will source the highest quality ingredients and
make them available to the attar makers.

Two of the main ingredients of any attar are:

Floral/Herb Materials:
This refers to the flowers, herbs et cetera which are at the crux of the
fragrance of any attar. The choice of this component decides the type and
fragrance of the attar. The process requires the following to be taken care of:

The quality of the flowers:

The time in a flowers lifecycle when the flower is plucked
The duration between plucking the flowers and the process of distillation.
Each of the famous attars require sourcing of special variety of flowers from
specific geographies in India.

Given below are some examples of the same:

Attar Type

Sourced from

Rose

Kannauj in Uttar Pradesh

Saffron

Pulwana in Jammu & Kashmir

Oudh

Assam, North-East

35

Rose Attar:
On behalf of attar makers, Vincenzo India intends to negotiate and fix direct
contracts with floriculturists from Kannauj. Quality Managers from Vincenzo
will test the quality of flower before plucking and ensure timely shipping to
attar makers.

Saffron Attar:
Vincenzo India will use the process of e-procurement to source saffron from
the various districts of Jammu & Kashmir. Vincenzo India will post a request
and sellers will respond to it competitively. Vincenzo India will then compare
the prices and the suppliers and will decide to source. Dabur has also
adopted this model to source saffron from Jammu and Kashmir. This will
ensure a low sourcing time, reduce costs and encourage transparency.

Oudh:
Oudh will be sourced from Aquilaria plantations set up in the North Eastern
states of India. Currently this is an unorganized industry in Assam. Vincenzo
India will identify legal plantations and source Oudh. Special care will have to
be taken care in the transport of Oudh as it is in great demand. As Agarwood
is an endangered plant species, Vincenzo India will itself run reforestation
programs for the same.

Sandalwood Oil as base material:

It is crucial to use sandalwood oil as the base material, but given the high
demand, low supply and strict regulations for trading in sandalwood that is
imposed in India due to various regulations Vincenzo India would look to
source premium-quality sandalwood oil from Australia. The benefits are as
follows:

36

Cost Effective: It will cost us exactly half the price in India (Rs. 35000/ per kg)
Availability of species: Australia is currently cultivating the Indian variety of
sandalwood, so we can get similar quality at lesser price

4. Manufacturing by Attar Makers

The raw materials sourced would then be provided to the attar makers, who
would bring in their traditional expertise in the process and make attar the old
fashioned way. This would be a non-automated process, carried out by the
resources of the standalone attar maker.

5. Testing by Vincenzo India

Vincenzo India will install a testing facility locally where the attar makers are
set up to test the quality of the attars produced by the attar makers.
As maintaining quality is paramount to making a premium product,
laboratories in the testing facility will be setup with the latest testing machines.
Following are some of the key parameters and the devices that will be used
for quality control:

Parameter

Testing Device

Optical Rotation

Polarimeter

Specific

Gravity

and Refractometers

Refractive Index
Olfaction, acid content

Gas chromatographymass
spectrometry (GC-MS)

6. Designing Attar Bottles

For designing glass bottles, Vincenzo India will involve experts who will come
up with intricate designs for perfume bottles and packaging. These designs
will be inspired by Mughal art and be in keeping with the royal tradition and
37

luxury associated with attars. Each bottle will have an individual and intricate
design, in sync with the history of that particular variety of attar.

7. Sourcing Attar Bottles

Glass designers will work with small-scale glass art manufacturers of

Firozabad in U.P and work out the design of the attar bottle.
As the House of Vincenzo is already into the perfume manufacturing industry,
they will look towards existing suppliers to source the raw materials required
to make quality glass bottles. Once the glass bottle makers from Firozabad
complete the bottle making, Vincenzo India will run the bottles through the
testing procedure to ensure they meet the high quality benchmarks of the
House of Vincenzo.
These bottles would then be shipped to the bottling plant.

8. Bottling and Branding Attar by Vincenzo India

The attar produced by the attar makers would be bottled, branded and
packaged at the bottling and branding unit of Vincenzo India. These would
then be ready for transport to the retail outlets

9. Supply to customer through flagship retail outlets

As Ittarati is a line of premium attars, it will be made available only to

customers through the flagship stores of House of Vincenzo in Delhi, Mumbai,
Pune, Hyderabad, Chennai and Bangalore. Also Ittarati would be sold in ultra
luxury hotels of premium tourist destinations of India to promote revenue
through tourists. Other products of House of Vincenzo like perfumes are
retailed through stores in malls and departmental store chains. But Ittarati will
be a high-end luxury perfume and will be available for retail only at the
selected stores.

38

Supply Chain Diagram

39

Following are the basic blocks of operations, which will interact amongst each
other:

1) Factory: This will include the operations of testing attar and glass bottles,
bottling, packing and branding the final product.

2) Attar Makers: They will manufacture the attar .

3) Glass Makers: They will manufacture the intricate glass bottles.

4) Warehouses: Raw material and finished good inventory will be stocked

here.

5) Transportation Logistics

Market Demand Ittarati

As Ittarati is an attar based luxury perfume, we can estimate the market
demand for Ittarati in India by evaluating the Indian luxury perfume space.

We estimate the market demand for luxury fragrance Ittarati in India by first
estimating for New Delhi and then scaling the model for the other tier 1 cities.

1) Current Population of India: 1.2 billion

2) Customers for Ittarati:

High Networth Individuals (HNIs): These are individuals that have a minimum
networth of INR 50 million by 2016-17.Currently their number is 1.17 lakh in
India. We assume that 95% of HNI purchase 1 luxury good per year, which
amounts to 1.11 lakh per year.

40

Upper Middle Class in Tier 1 and Tier 2 cities: Upper middle class, despite
being cost sensitive, buy luxury goods, perfumes being the most popular
luxury product. Most households earning more than INR 1 million opt for
luxury goods. Reports suggest that this number will be 3.3 million households
by 2015.Assuming that we have 2 consumers of luxury good per household
this number amounts to 6.6 million (66 lakh) individuals i.e. 66 lakh Indians
consume luxury goods per year.

Total number of consumers = 1.11+66 = 67.11 lakh/year

3) Market Size estimations:

Size of Indian luxury market grew to USD 5.8 billion in 2013,growing 30% per
year. Hence projected numbers for 2014 is USD 7.54 billion, which is equal to
INR 28500 crore.

Size of the Indian luxury perfume market is 700 crore.

Hence we conclude that Indian luxury perfume category holds 2.5% of Indian
luxury category.

Total number of customers buying Indian luxury products who specifically buy
luxury perfumes is 2.5% of 67lakh/year, which is approximately equal to 1.65
lakh/year

3) Market Share:

House of Vincenzo currently holds a 16% market share in the Indian luxury
perfume scene, and historical estimates suggest that the launch of a new
perfume increases the market share by 9%. However Hence we can say that
9% of 1.65 lakh consumers/year i.e. 14,850 consumers per year will buy
Ittarati.

41

4) Transactions (No of bottles consumed per year)

As customers buy 2 bottles of luxury perfumes per year, 14850 consumers
will buy 29,700 bottles per year.

5) Amount (Revenue numbers)

As each bottle of Ittarati is priced at INR 3100 hence the estimated revenue
per year from Ittarati is INR 9.207 crore.

Once Vincenzo India manufactures Ittarati, it will be evaluated in the pretest

market to estimate the market share that it weaning from the competitor and
the market share that it is cannibalizing from House of Vincenzos line of
perfumes. This will help us predict Ittaratis long-term market share (including
cannibalization and switching from competitors product) and sales volume.
This will affect overall revenue. However we are pricing Ittarati in the high end
range and the other perfumes will be priced lower than the latest offering,
hence any cannibalization to Ittarati from any other House of Vincenzo
perfume is beneficial to House of Vincenzo.

Marketing Strategy
Consumer Survey
In order to guage the effect of Social Impact campaigns we conducted
consumer surveys across different luxury malls in Hyderabad. The
respondents were generally those consumers who had entered the mall and
spent at least 15 minutes inside a luxury shop and came out buying a luxury
perfume.
Survey Questions:
Q1 Would you buy a luxury attar if it was offered by Vincenzo?
Q2 What is the price you would pay for a luxury attar offered by a leading
Italian brand? Options 2000, 3000, 4000 (per 100ml)

42

Q3 Would you buy a luxury brand product if you knew that it supported
thousands of artisans and farmers?
Survey Statistics:
Number of Respondents: 54
Malls Visited: GVK One, Inorbit Mall, Central, City Centre

Questions

Answers

% of Respondents

Yes

60%

No

40%

2000

70%

3000

20%

4000

10%

Yes

84%

No

16%

Conclusion: The respondents showed preference of buying products of a

brand if they knew about the social impact of the house of brands. There was
an increase of 23% in the purchase intention among the respondents once
they learned about the social impact initiative.

Segmentation-Targeting-Positioning
Customer Segmentation
The average upper middle class family in India earns Rs. 30 Lakhs per annum
and the average salary of an IT engineer with 8 years of experience is 20
Lakhs per annum. There are similar customer segments that could be
considered as the target segment for any luxury product that includes Ittarati.
A close analysis of the Indian luxury market reveals that there are two major
categories of customers, which the Indian luxury market caters to The Rich
Aristocrats and The new affluent. The Aristocrats are traditional rich and are
loyal to the brands they have been using or their families have been buying,

43

interestingly on the other hand the new affluent is highly educated , fairly
young and ready to experiment with brands.
The Indian Market Research Bureau has classified the segments into the
following broad categories that also apply to Ittarati

Rich Aristocrats
Experientialists
The connoisseurs
Aesthetes
Flaunters

Experientalists: The neo-rich who like to try new products and go for the
experience rather than just the brand name.

The Connoisseurs: This customer group has developed taste for exclusive
high end luxury products and sticks to their previous buy.

The Aesthetes: This segment of luxury consumers prefers the aesthetics over
brand image as the name suggests. They like to buy a well crafted product
even though it comes from a new brand.

Flaunters: They live upto their name and buy to flaunt. Their value in a
product is the X-factor or uniqueness that it adds to their persona. A traditional
product may not be a most preferred one for them.
Ittarati will target these segments which constitute of HNI (High Networth
Individuals) who have high affordability and preference for luxury products.

44

Vincenzos strategy is to target the cities with the maximum high income
customers. A greater percentage of these customers also have a
psychological inclination for buying the luxury goods. Vincenzos positions
itself as the Art of Luxury brand. The brand equity developed so far would
form the basis for ITTARTATI, but the social impact it would create with each
perfume bottle coined with its deep connect with the rich Indian heritage
would be the differentiator. Ittarati would be positioned as the uber luxurious
perfume and would be postioned in the high end luxurious hotels and malls
and also in the Indian palaces that would define its luxurious nature.

Luxury
Prestige
Masstige
Mass

Indias total personal income spending has been growing at a rapid pace year
on year. The figure below shows Indias personal spending since 2004.

45

Among the various cities in India, the metropolitan cities give way to have the
maximum number of high earners. Delhi and Mumbai with the outlook of
some of the major enterprises and industries as well as with current and
potential demand in the luxury sector become the major targets for possibly
any luxury product. However, these are not the only cities in India for Ittartis
launch. Vincenzo India plans to launch Ittarti in more than 6 cities in India.
Here is a list of how the opportunites in different cities shall be tapped by

Vincenzo:

1) Delhi: Delhi acts as the epicenter for all the luxury goods activity. The first
ever luxury hybrid mall is located in Delhi and it holds nearly 170 brands
including 70 international brands. Currently Delhi corresponds to nearly
50% of the luxury consumers in India. The high real estate drivers and the
socio-psychological parameters all influence in its becoming the top luxury
city in India.

46

Source: DLF Emporio, New Delhi

2) Mumbai: The star studded city of the country is another target for any
luxury brand. Mumbai has the highest demand in the retail sector. The
only reason for Mumbai to lag behind Delhi is the high real estate rates in
some of the prime locations, which act as a barrier for its retail needs.
Nevertheless, Mumbai stands to be the highest consuming city.

Source: Palladium, Mumbai

3) Bangalore: Bangalore the silicon valley of India, also has a high retail
quotient. Very affordable rents have been a boon for the city to flourish in
the retail sector. The only glitch here is that the personal consumption is
not as high as in other cities. Bangalore has

a very high number of

flagship stores of various brands.

47

4) Chennai: Chennai is one of the affordable cities when it comes to real

estate. According to a report, Chennai has been picked as one of the 12
upcoming destinations for Luxury Real Estate. Boom in the real estate
means a boom in the luxury industry overall. Down south, Chennai serves
as one of the most developed cities. Because of this reason, it also
becomes the target for any luxe products that wish to cater to the people
of South India.
5) Hyderabad: Hyderabad is set to be the next IT hub of the country. With
the amount of IT and services company rising here, the level ans
stanadards have been on the uphill in the past decade. Hyderabad has
seen a transformation in the recent years. From Malls to luxury hotels to
palaces, Hyderabad has all geared up to offer luxury to its youth.
6) Pune: Pune provides the most affordable rents in prime areas among the
Tier I and Tier II cities. Also, with large office spaces it has in its pipeline it
can easily offord to have more migration from various other cities. Its
proximityto Mumbai is one added reason of considering this as the prime
laucnch city for Ittarati.

Vincenzo will also look to have its kiosks and exclusive stores in a few tourist
destinations with heritage hotels which attract the uber rich from India and
across the world. This is also in line with positioning the Vincenzo brand as
the one that relates to Indian culture and is inspired by its varied richness.
The Hotels under our consideration set have been listed below:

1) Oberoi Udai Vilas (Udaipur): This hotel symbolizes the epitome of Rajput
elegance as it welcomes it guests in the middle of Lake Pichola after a short
boat ride from the main land. It has consistently been rated amongst the Top
3 hotels in the world and has hosted the whos who of Hollywood and power
corridors from around the world.

2) Oberoi Rajvilas (Jaipur): This has the advantage of being in the capital of
Rajasthan which is a hub of tourist activity. The Pink City as it is known also
hosts a large number of destination weddings and Rajvilas is one of the

48

preferred destinations. An excellent place for a luxury brand to make its

presence felt.
3) Oberoi Amarvilas (Agra): Agra needs no mention, it is the home of Taj
Mahal, one of the seven medieval wonders. Taj is on every moneyed tourists
bucket list abroad and so is Oberoi Amarvilas if you want to have a
breathtaking view of the Taj from youre the window of your room.

Courtesy: Hotel Oberoi Amarvilas

4) Taj Nadesar Palace (Benaras): Benaras of Varanasi as it is known is

perhaps the oldest city in which still thrives. It has the distinction of having the
highest inflow of foreign tourists in India beating any other place by a
distance. Taj Nadesar palace is the only heritage hotel managed by the Taj
Group of Hotels and lives upto any connoisseurs expectations easily.
Although, the competition faced by Ittarati at these locations would be
extremely high, given the current luxury perfumes available in the market from
some of the leading and well known brands, Ittaratis USP is its deeper
connectivity with the culture of India. Ittarati would redefine Indias heritage for
the world instead of bringing the world culture to India.
Here is how the 4Ps for Ittarati would look like:

49

Product

One of the fine

luxury perfumes
enriched with
traditional attar
and modern
day subtlty
A first luxury
perfume related
to the Indian
attar industry

Price

Premium
Luxury product
priced for high
end customers
High margin substanitally
low cost
product

Place

Metropolitan
areas in the
country
Places with
evident high
luxury items
sales

Promotion
Ittarati -

Wear.Love.Sprea
d
Roots campaign
that depicts our
enriched ancient
culture to be a
need for the
modern day
Catalouges,
fashion shows,
high profile
magazines
Celebrity
endorsements

Marketing & Communication

Ittaratis promotion is one of the most critical steps for the products potential
growth. Apart from the customers who visit Vincenzo regularly looking out for
new collections of the seasons, Ittarati would demand a greater campaign in
order to convey the right message to the right people.

Vincenzo has had some of the most unique ad campaigns in the past.
Vincenzos creative team has some of the best minds in the country. One of
the best marketing campaigns Vincenzo ever launched was the Inside Job,
where people could see the inside of the store by using google maps from
their personal computers. The footfalls increased nearly 5% after the launch
of that campaign. Vincenzos history and association with the niche market
requires it to be connected to the Fashion world day in and day out. Vincenzo,
has models walking down the ramp in worlds leading fashion shows.

50

For Ittarati, Vincenzo plans to work with some of the biggest Fashion shows of
the like,
Roots Campaign
The

campaign is another extremely creative campaign Vincenzo

plans to launch for Ittarati. As can be seen by the name - the campaign is
dedicated to remind people of their rich roots, which in this case symbolize the
rich Indian heritage. The main focus shall be on the attar industry and how
one bottle would affect hundreds of artisans. A different version of the earlier
Inside Job campaign for Ittarati would involve creating a video which would
take the viewers inside the homes and everyday lives of the artists and
craftsmen.

Other campaigning modes for Ittarati include covering high profile magazines
and promoting Ittarati in luxury hotels and Indian palaces. Indian palaces are
the major tourist attractions which see foreigners and expats coming down in
large numbers. Also, for a luxury product, television and media might not be
the best way to reach out to the special segment that requires exclusivity. In
the past, Vincenzo has made use of season collection catalogues which have
proved very successful. Ittarati would form a larger part of those catalogues
with its great launch in India. Vincenzo also plans to have celebrity rich launch
events for the Ittarti. Any celebrity endorsement usually leads to high levels of
product promotion and the sales might eventually go past the roof if the
product has the right potential.

51

.
A snapshot from the Roots Campaign

Financials
The financial modeling for Ittarati has been done below , from Vincenzos
perspective. We have assumed the scenario where Vincenzo invests in the
testing and bottling plant and sources Attar from local manufacturers and
sells the finished product through its already existing Brick & Mortar stores
and online portal. The complete manufacturing process has been explained in
detail as part of the Operations.
Following assumptions have been taken into account for the financial
modeling:
1. Vincenzo has its online portal for selling its already existing line of
products.
2. They do not sell through independent distributors, but instead they only
sell through their exclusive luxury stores.
3. Raw materials are sourced from various regions of India and the cost
of the ingredient per 100 ml of ittar accounts for the sourcing cost also.

52

4. There will be minor store modifications done throughout the country to

accommodate Ittarati line of products.
5. All manufacturing will be done by local factories and then supplied to
Vincenzos plants for quality checks and bottling. The workers at the
facility will be on company payroll.
Costing and Break-Even analysis for One factory that produces 2500
attar units/month.

Cost of (100 ml Standard Attar)

2014

Sandalwood (10gms)

650

Flowers (50gms)

30

Spices

50

Packaging

50

Water

Bottle (Glass Vial)

60

Total Cost of 1 Bottle of Attar

844

Labour Cost (Local Vendor's)

253

Total Cost to Company per Bottle 1,097

of Attar
Total Variable Cost per Month
Total Cost of 2500 Bottles of Attar

2,110,000

Labour (per month) 200 Workers

1,400,000

Manufactufing Overhead(Variable) 600,000

Transportation (per month)
Inventory

Costs

400,000

(Warehousing 200,000

Rental)
Total Variable Cost per Month

4,710,000

Fixed Expenses
Factory Cost

7,000,000

License

250,000

Manufacturing Overhead(Fixed)

800,000

53

Trucks (For Distribution)

3,500,000

Store Modifications

2,500,000

TV Commercials (Shooting)

2,000,000

Celebrity Endorsements

2,000,000

Equipment

2,000,000

Selling & Administrative Expenses

2,000,000

Total Fixed Cost

22,050,000

Revenue
Sales per Month

2,000

Price per 100ml

3,500

Total Revenue

7,000,000

Inventory

500

Contribution Margin Calculation

Variable Cost

4,710,000

Contribution Margin

2,290,000

Depreciation

Profit (Per Month)

-19,760,000

Yearly Profit (Monthly Profit * 12)

NA

Break Even Volume

Fixed Cost

22,050,000

Contribution Margin/Bottle

1,145

Break Even Volume

19,258

Break Even Time (Months)

It is noted that the Break-Even time for an Attar factory is only 2 months.
This is mainly possible due to lower land prices in small towns like Kannauj

54

and nearby towns and also the high premium (approx. 350%) that luxury
perfumes command in the Indian market.

Given below is the detailed projection of profits for next 5 years coming from
One factory that produces 2500 units of Attar per month. We have accounted
for the inflation that alternates at the rate of 8% and 9% every year.

Inflation

Inflation

Inflation

Inflation

Inflation

8%

9%

8%

9%

8%

2014

2015

2016

2017

2018

2019

Sandalwood (10gms)

650

702.00

765.18

826.39

900.77

972.83

Flowers (50gms)

30

32.40

35.32

38.14

41.57

44.90

Spices

50

54.00

58.86

63.57

69.29

74.83

Packaging

50

54.00

58.86

63.57

69.29

74.83

Water

4.32

4.71

5.09

5.54

5.99

Bottle (Glass Vial)

60

64.80

70.63

76.28

83.15

89.80

Total Cost of 1 Bottle of

844

911.52

993.56

1,073.04

1,169.62

1,263.18

253

253.80

276.64

298.77

325.66

351.72

1,097

1,165

1,270

1,372

1,495

1,615

2,110,000

2,278,800.

2,483,892

2,682,603.

2,924,037.

3,157,960.

00

.00

36

66

68

1,512,000.

1,648,080

1,779,926.

1,940,119.

2,095,329.

00

.00

40

78

36

648,000.0

706,320.0

762,825.6

831,479.9

897,998.3

432,000.0

470,880.0

508,550.4

554,319.9

598,665.5

216,000.0

235,440.0

254,275.2

277,159.9

299,332.7

5,086,800.

5,544,612

5,988,180.

6,527,117.

7,049,286.

00

.00

96

25

63

Cost of (100 ml Standard

Attar)

Attar
Labour

Cost

(Local

Vendor's)
Total Cost to Company
per Bottle of Attar
Total Variable Cost per
Month
Total Cost of 2500 Bottles
of Attar
Labour (per month) 200

1,400,000

Workers
Manufactufing

600,000

Overhead(Variable)
Transportation

(per

400,000

month)
Inventory

Costs

200,000

(Warehousing Rental)
Total Variable Cost per
Month

4,710,000

55

Fixed Expenses
Factory Cost

7,000,000

0.00

0.00

0.00

0.00

0.00

License

250,000

0.00

0.00

0.00

0.00

0.00

Manufacturing

800,000

0.00

0.00

0.00

0.00

0.00

Trucks (For Distribution)

3,500,000

0.00

0.00

0.00

0.00

0.00

Store Modifications

2,500,000

0.00

0.00

0.00

0.00

0.00

TV

2,000,000

0.00

0.00

0.00

0.00

0.00

Overhead(Fixed)

Commercials

(Shooting)
Celebrity Endorsements

2,000,000

Equipment

2,000,000

0.00

0.00

0.00

0.00

0.00

Selling & Administrative

2,000,000

0.00

0.00

0.00

0.00

0.00

22,050,00

0.00

0.00

0.00

0.00

0.00

Expenses
Total Fixed Cost

Revenue
Sales per Month

2,000

2,100.00

2,190.00

2,230.00

2,305.00

2,420.00

Price per 100ml

3,100

3,410.00

3,751.00

4,126.10

4,538.71

4,992.58

Total Revenue

6,200,000

7,161,000.

8,214,690

9,201,203.

10,461,72

12,082,04

00

.00

00

6.55

6.02

500.00

500.00

500.00

500.00

500.00

85,932,00

98,576,28

110,414,4

125,540,7

144,984,5

0.00

0.00

36.00

18.60

52.24

5,086,800.

5,544,612

5,988,180.

6,527,117.

7,049,286.

00

.00

96

25

63

2,074,200.

2,670,078

3,213,022.

3,934,609.

5,032,759.

00

.00

04

30

39

Inventory

500

Yearly Revenue

Contribution

Margin

Calculation
Variable Cost

Contribution Margin

4,710,000

1,490,000

Depreciation

0.00

0.00

0.00

0.00

0.00

Profit (Per Month)

2,074,200.

2,670,078

3,213,022.

3,934,609.

5,032,759.

20,560,00

00

.00

04

30

39

24,890,40

32,040,93

38,556,26

47,215,31

60,393,11

0.00

6.00

4.48

1.64

2.73

0
Yearly Profit

NA

56

Based on the projections, Vincenzo can earn a profit of INR

24,890,400.00 from One factory per year.

Accounting Decisions:

Manufacturing Overhead: This includes the designing costs of glass

bottles, training expenses for the employees and unskilled labour,
procurement of glass for the vial manufacture and quality control
activities undertaken during the production process.

Factory Cost: This includes the book value of the factory that
encapsulates the land value and the built up real estate value.

The cost of attar per bottle has been calculated by breaking down the
cost of individual raw materials as per the quantity required to produce
100 ml of attar.

There is a separate labour cost to company that is the fee paid to the
local manufacturer who will produce attar for Vincenzo. It is ideally the
outsourcing cost for the skilled labour provided by the local
manufacturer in producing the attar.

Labour/Month (200 workers) is a separate head that covers the cost of

retaining 200 skilled artisans in Vincenzos plant for production of attar.

The marketing expenses have been segregated into a few heads like
Selling and Administration expenses, advertisements and celebrity
endorsements. Celebrity endorsements are indispensable when
launching a new line of fragrance products as by and large the
consumer is indifferent to individual characteristics of a high end
perfume but rather influenced by the brand image and equity.

Market Share & Forecasting Production

The current Indian luxury perfume market is worth INR 700 Crores and
growing at 40% year on year. This niche market is highly dominated by
Foreign players like Armani, Dior, Azzaro, Chanel etc.

57

Major Demand Centres

With Indias growing middle class and rising urbanization there has been
recent surge in the average Indians spending on cosmetics and grooming
products. As per the recent ASSOCHAM study on Indian fragrance market,
the teenagers in cities are spending on an average INR 500-1200 on
deodorants and perfumes on a monthly basis. Interestingly there is space for
every player in this versatile market.
The Tier II and Tier III cities have really boosted the demand for mid-range
fragrance products led by an increased awareness and channels like hyper
markets and mushrooming malls.
Tourist Destinations like Agra, Jodhpur, Jaipur, Varanasi now have high end
luxury hotels that cater to the uber rich domestic and international tourists who
are a major target segment for luxury products. Vincenzo already has its
presence in this tourist towns at these super luxury hotels like Udai Vilas,
Udaipur and Umaid Bhavan Palace in Jodhpur.
Hybrid Malls in Tier I cities like Delhi and Mumbai have a daily footfall of
around 100,000 visitors. These hybrid malls house luxury brands and
Vincenzo Indias focus has been to find places in these hybrid malls in metros
like Delhi and Bangalore where they can operate out of the confines of the 5
Star Hotels and also gain a larger audience without compromising on brand
positioning.

The overall fragrance market size in India is INR 7000 Crores which is also
growing at a CAGR of 40%. Vincenzo with its line of fragrances already has
16% of Indian luxury perfume market captured and ranks 3rd.

58

Market Share(2014)
9%

16%

Vincenzo

13%

Armani
Azzaro

15%

Burberry

27%

Dior
Others

20%

The total revenue earned by Vincenzo in 2013 was approx. INR 100 Crores.
With the launch of Itterati we look to increase the market share by 3.5 % and
thereby maintain this for the next five years as the market grows. The
projected net revenue for the next five years based on the above target is as
follows:

3000.00

2689.12

2500.00
1920.80

2000.00

Projected Market Size

1372.00

1500.00

Projected Target Revenue

980.00
1000.00

700.00

500.00
56.00

78.40

109.76

153.66

215.13

0.00

We can increase the number of factories depending on the target market

share and incremental revenue that we foresee. For the year 2015 the
projected incremental revenue at the rate of 3.5% growth is 56 Crores, which

59

would mean that we need to operate around 7 factories to meet the annual
target if we look to achieve the target by our new product Ittarati.
Financing Ittarati Line of Product
Ittarati is completely new line of product that Vincenzo will offer for the first
time in the Indian market. This is an ambitious project which will require a
handsome initial investment. As per our financials for the project the
Breakeven time is nearly 4 months hence it is considered to be a safe
investment. The total fixed cost will be taken into account as the initial
investment as the product starts to make a positive contribution margin from
the first month itself (as per our estimates.)
2014
Factory Cost

7,000,000

License

250,000

Manufacturing Overhead(Fixed)

800,000

Trucks (For Distribution)

3,500,000

Store Modifications

2,500,000

TV Commercials (Shooting)

2,000,000

Celebrity Endorsements

2,000,000

Equipment

2,000,000

Selling & Administrative Expenses

2,000,000

Total Fixed Cost (NPV)

22,050,000

The amount required as initial investment is 2.2 Crores.

Source of Financing: The initial investment amount of 2.2 Crores shall be
procured from Vincenzo Indias cash balance of last year. The ending cash
balance in Vincenzos account was 18.7 Crores FY 2013. There wont be any
kind of loan sought.

60

Rules and Regulations affecting Ittarati

1) Indian Forest Act, 1927: Currently one of the chief barriers to making
premium attar is the high cost of sandalwood oil due to low supply. Indian
Forest Act, 1927 restricts sale and manufacture of sandalwood and
sandalwood oil. It also levies export restrictions on sandalwood and
sandalwood oil.

2) The Sandalwood Act: The Union Ministry of Environment and Forests

(MoEF) is formulating the special legislation to regulate the cultivation, trade
and import of sandalwood. This act, currently in draft stage, would impact the
company cost structure in the long run. If sandalwood cultivation is
successful, Vincenzo India can source legal sandalwood from India and would
not have to import from Australia, where sandalwood cultivation is legal and
inexpensive

3) Import duties and taxes for sandalwood:

Importing sandalwood to India requires paying up of the following import
duties and taxed:

Most favored nation (MFN) tariff of 10%

No Sales Tax

Landing charges (1% CIF)

Countervailing duty (12% (CIFD + Landing charges))

CESS (3% (Duty + Countervailing duty))

Additional

Countervailing

Duty

(4%

(CIFD

Landing

charges

Countervailing duty + CESS))

Import of Goods is not subject to VAT

The governments plan of increasing import duties will not affect sandalwood
import.

61

4) Liberalized FDI Policy in luxury retail in India, November 2013: Increasing

FDI in the luxury retail sector will make it easier for House of Vincenzo to
invest more in Vincenzo India and in Ittarati.
This will mitigate the investment risk that Vincenzo India would have to bear
alone. A recent regulation that makes it easy for House of Vincenzo to invest
in Ittarati is that 100 per cent foreign direct investment (FDI) in both single and
multi-brand retail requires 30 per cent of local. Ittarati business model focuses
on sourcing raw materials from Indian suppliers

5) The Trademarks Act of 1999: This will protect the Ittarati trademark from
being copied. One of the chief reasons that make foreign investors hesitate
before retailing in India is trademark counterfeiting.

6) The Copyright Act, 1957: The artisans, attar recipes and processes, and
bottle designs of Ittarati can be protected under the Copyright Act of 1957 to
preserve exclusivity. This would ensure a competitive advantage over
competitors, as perfume recipes would be a secret.

7) The Standard of Weight and Measure (Packaged Commodities) Rules

1977: This regulation ensures that weighing and measuring standards are met
so as to provide the customer with the correct weight, measurement and
quantity of the product. As bottling and packaging of Ittarati will be done in a
factory in India, these rules will have to be followed.

8) The Drugs and Cosmetics Act, 1940 and the Drugs and Cosmetics
(Amendment) Act, 2008: This act ensures that adulterated, spurious or
misbranded drugs and cosmetics are not sold in the Indian retail market. The
Government reserves the right to inspect the product. This law will also be
applicable on Ittarati.

9) Intellectual Property Right (Imported Goods) Enforcement Rules, 2007:

This law empowers Customs authorities to seize counterfeit goods.

62

10) Land Acquisition Act 2013: This will impact Vincenzo India, as it would
need to acquire land from the state government of Uttar Pradesh to build a
factory near Kannauj

11) Environment (Protection) Act, 1986: This will impact Vincenzo India as
factory will generate waste.

Expansion Strategy
The U.S. luxury market for personal luxury goods is estimated at US$75
billion as opposed to Indias US$1.5 billion. The more relevant comparison, to
other BRIC nations, also suggests a considerable lag. Brazils personal luxury
goods market is at US$4 billion with 130 stores while China has surged ahead
at US$20 billion with 1,100 stores. (India has around 60 stores). Focusing
only on the fragrances, the global perfume industry is generally valued at
around $28 billion (based on a 2012 report) per year. However, a more recent
report says its going to be far, far bigger than that. Perfumer & Flavorist cites
a 2013 study by Global Industry Analysts which says the industry will reach
about $45.6 BILLION dollars in 2018, in a mere 4 years time. The driver
behind such a high growth is primarily the emerging markets with very high
potential and innovation. France is expected to have a very high growth in the
number of women buyers in the next 4 years. Italy also holds a major ground
for perfume sales and out of all its perfume sales has nearly 60% sales for
women perfumes. Middle east and South east Asia are coming up as the
major luxury markets of the world. Though, US and Europe still serve as the
home of luxury goods, the developing countries are not far behind. An
inflexion point will take five to seven year, but it is definitely expected.

Middle East has one of the closest connections with the traditional Arabic Oud
a form of Arabic attar. Arabic Oud has the highest share in Dubai as
compared to other niche premium fragrances. A product that is the first ever
combination of both tradition and a leading premium brand would see a
63

demand of great size. Owing to the immense potential in the new emerging
markets, Vincenzo would aim to launch Ittarati in the Middle east, China and
other parts of South East Asia in the near future.

Also, from the point of view of its turnover, Vincenzo would expect to have a
return of nearly INR 8.5 crore in the first year of Ittarati launch. With the rising
demand of Ittarati in India as well as with the plan to go abroad with the
product, would need further investment and a higher competitive edge in the
market. As a result, in the long run, Vincenzo India aims to develop a strategy
where it can providing funding to its attar manufacturers. The main idea
behind this would be to empower them even further. Getting a stake in their
companies would provide them the needed support and the assurance of
orders that is hard for them to achieve in the recent scenario. This also is one
of the biggest reasons for the attar industry to have seen such a decline. The
decline is not because of the unavailability of artisans or the raw materials, but
the demand for the attar in this modern day.

Owning stakes in the attar manufacturing companies would at the same time
provide a competitive advantage to Vincenzo India. This would help it to lower
the bargaining power of the attar manufacturers and also reduce their
switching power towards other manufacturers, in case the perfume industry
competitor choose to enter into this business.

The ultimate long run goal of Vincenzo India is to maximize the profit to the
artisans and craftsmen. Globalization and Competitive strategies together
when applied would act as a framework to increase the social impact to this
industry.

64

References

http://www.ffdcindia.org/pdf/indian_21may2014.pdf
http://ipindiaservices.gov.in/
http://www.arabnews.com/life-style/india%E2%80%99s-traditional-perfumemakers-threatened-scent-modernity
http://www.niir.org/blog/blog/12/project-consultancy-services-formanufacturing-perfumes-fragrances.html
http://economictimes.indiatimes.com/magazines/indulge/perfume-marketexpanding-in-india/articleshow/6016621.cms
http://fleurrance.wordpress.com/2014/03/03/new-affluents-consumersegmentation-of-indias-emerging-luxury-market/
http://www.kafkaesqueblog.com/2014/02/20/the-global-fragrance-industry-worldmarkets-popular-fragrances-sales-figures/
http://en.wikipedia.org/wiki/DLF_Emporio
http://articles.economictimes.indiatimes.com/2012-05-20/news/31779167_1_luxurymarket-luxury-shopping-luxury-mall
http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/KPM
G-ASSOCHAM-India-Luxury-Summit-2014.pdf
http://www.livemint.com/Industry/3yY4IlX7bml6AesnRLfztK/Luxury-brands-moveout-of-5star-hotelstohighstreet-mall.html?utm_source=copy

65