Isak Fragrances, a Lucknow-based company, is expanding its product range across sizes and price points to offer Indian consumers a local perfumery alternative, its sixth-generation entrepreneur-founder Vidushi Vijayvergiya said.
“The Indian consumer has evolved so much in recent years, especially after covid, and is now aspirational in many ways. French, Italian and Middle Eastern fragrances have had the spotlight for ages, but now Indian options are gaining significant traction,” Vijayvergiya told Mint.
Isak appeared on Shark Tank India in 2022 and raised funding from Lenskart founder Peyush Bansal.
The global fragrances market, which includes perfumes and home scents, is worth upwards of $24 billion and India contributes about $500 million, according to a study by the ministry of micro, small and medium enterprises. Exponential growth in this market is expected in the next few years, thanks to rising brand awareness, increasing disposable income and the advent of affordable products.
Indian companies now want to take their unique fragrances mainstream by making them more affordable. Isak and Boond Fragrances, an alcohol-free fragrances maker based in Kanauj, Uttar Pradesh, are investing in educating first-time perfume users on the different types of fragrances and their relevance in the Indian context.
Boond has products with a starting price of ₹449 and sells predominantly through its website and online marketplaces such as Amazon. Now, it is working towards ramping up its offline presence with a focus on specialty handicraft stores, co-founder Krati Tandon told Mint.
Big opportunity
While consumers across age groups are taking to specialty fragrances, the younger ones are leading the wave. Jinal, a 27-year-old marketing associate based in Mumbai, said niche perfumes like oudh and attar are great gifting options.
“It’s the easiest gifting choice. There are so many options to choose from and so many brands too,” she said.
Boond’s audience comprises mainly 25-40-year-olds, especially those looking for artisanal and handcrafted work, according to Tandon. Isak wants to bring in both customers who know about and have tried a variety of fragrances and those who haven’t used anything beyond deodorants, Vijayvergiya said.
Venture capital-backed cosmetics brands are tapping into the opportunity as well. Evolvence India-backed Renee Cosmetics, which recently raised ₹100 crore, has introduced a range of perfumes at prices starting at ₹299.
Plum, backed by Unilever Ventures, counts its perfume range among its bestselling products. Perfumes account for 10% of Plum’s overall revenue, Shankar Prasad, founder and chief executive of the company, told Mint.
Other affordable fragrance brands include Bella Vita Organic and Sugar Cosmetics.
Large companies want to cash in, too. Beauty retailer Nykaa recently turned its sights towards prestige fragrances, calling it the “third pillar of beauty” after makeup and skincare. The portfolio grew 74% in FY24 from the previous year with a market share of about 13%, according to the company.
Skinn, the fragrance division of Titan, recently launched a range of affordable products under the ‘24Seven’ tag, aiming to reach 2.5 million consumers by the end of FY25.
“It’s a fast-growing market and consumers are widening their interests in personal care. Gone are the days when people would stick to deodorants,” said an early-stage investor, asking not to be identified.
Organising the market
While a large opportunity exists, companies remain wary of clones. Since a large part of the fragrances market is largely fragmented and unorganised, fakes and clones take away from a brand’s creativity and hard work, Isak’s Vijayvergiya said.
Moreover, with many consumers in the country still unaware of how to pick the right fragrance, many opt for low-priced, unbranded products, making it tougher for fragrance companies.
“It will take some time for brands to be able to fully be present in the minds of consumers. But it will happen. It happened with cosmetics brands and now there are so many of them,” said the investor cited earlier.