Untouched by Economic Slump free essay sample

The Assocham study states that the Indian deodorant and roll-on market is currently poised at about Rs 1,800 crore and is growing at about 55 percent annually. While, the perfume market is growing at about 30 percent and is currently poised at about Rs 1,500 crore, the roll on markets current size is a meager Rs 400 crore as only a handful of brands are operating in this domain. Fragrance industry in India is still at nascent stage but its rising demand is largely driven by growing awareness and preferences amid strong Indian middle-class with high disposable incomes as they do not shy away from splurging on lifestyle products to look and feel good, says Rawat. He further adds that with grooming and personal hygiene fast becoming a part of peoples accessory wardrobes, demand for fragrances is likely to escalate significantly. Rising demand for fragrances from tier II and III cities is the real growth driver of this industry as a result companies are gradually shifting their focus from metros and exploring other markets and gearing to launch a range of affordable deodorants, perfumes and colognes during summers, says Rawat. We will write a custom essay sample on Untouched by Economic Slump or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page For instance, Roadies a deodorant by Karol Chemicals is doing quite well. Rajeev Kumar, marketing manager of Karol Chemicals says, A 100 ml bottle of this deodorant costs about Rs 200. The profit margin is between 25 to 30 percent, says Kumar, who has been with Karol Chemicals for the last 20 years. PRICE WARS With an increase in demand, the competition is getting tough. Saurabh Gupta, owner of Vanessa Incorporation that manufactures Vanessa deodorants for women says: In this industry a lot of players have left the market and hence, made space for new players. Due to competition, manufacturers have to bring down their retail price. These days, if a deodorant was first being sold for Rs 200, it is now being sold for Rs 195. It is a case of price war. Based out of Pusa Road the company blends their own compounds to create fragrances.