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  • Perfume Industry in India: Chu-Lan CHIN Julie-Anne COHEN Carlos CONTRERAS Debanjan DEY

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    The perfume industry in India is growing. L'Oreal first entered the Indian market in 1990 through a local distributor and established a wholly owned subsidiary called L'Oreal India Private Limited in 1994. L'Oreal India has experienced strong growth of around 46% per year and reached revenues of 40 million with 600 employees in India. The luxury perfume market in India is valued at around 600-700 crore INR and is growing at 20-25% annually. Competition comes from other multi-brand companies and retailers as well as Ajmal Perfumes. New trends include growth in the men's market and demand for high-end international brands.

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    The perfume industry in India is growing. L'Oreal first entered the Indian market in 1990 through a local distributor and established a wholly owned subsidiary called L'Oreal India Private Limited in 1994. L'Oreal India has experienced strong growth of around 46% per year and reached revenues of 40 million with 600 employees in India. The luxury perfume market in India is valued at around 600-700 crore INR and is growing at 20-25% annually. Competition comes from other multi-brand companies and retailers as well as Ajmal Perfumes. New trends include growth in the men's market and demand for high-end international brands.

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    Download as pptx, pdf, or txt
    255 views9 pages

    Perfume Industry in India: Chu-Lan CHIN Julie-Anne COHEN Carlos CONTRERAS Debanjan DEY

    Uploaded by

    debanjan018
    The perfume industry in India is growing. L'Oreal first entered the Indian market in 1990 through a local distributor and established a wholly owned subsidiary called L'Oreal India Private Limited in 1994. L'Oreal India has experienced strong growth of around 46% per year and reached revenues of 40 million with 600 employees in India. The luxury perfume market in India is valued at around 600-700 crore INR and is growing at 20-25% annually. Competition comes from other multi-brand companies and retailers as well as Ajmal Perfumes. New trends include growth in the men's market and demand for high-end international brands.

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    of 9

    PERFUME INDUSTRY

    IN INDIA

    Chu-Lan CHIN Julie-Anne COHEN

    Carlos CONTRERAS Debanjan DEY


    L’Oreal SWOT Analysis
    STRENGHTS WEAKNESSES

    • Continuing research & innovation • Decentralized organizational structure


    → Leader in the growing cosmetic → Complex process of decision
    industry • Low profit margins compared to
    • Large brand and product portfolio competitors because of marketing &
    → Diversification and global coverage advertisement spends
    • Performing advertisement strategy • Coordination and control of the
    → Communication adapted in each activities & image worldwide
    part of the world to reach every women (dissimilarities)
    • Dependency on American market
    OPPORTUNITIES THREATS

    • Growing demand for beauty products • Growing competition within the field of
    worldwide cosmetic brands
    • Greater market share because of the • Purchasing power shrinkage of middle
    numerous patents registered by the classes
    company (= monopoly on many • Stagnation of European markets
    products)
    L’Oreal in India
    1990 = 1st introduction of L’Oreal in India through a local
    distributor when frontiers opened to international capital

    1994 = Indian government gives to L’Oreal the subsidiary


    statute
    L’Oreal India Private Limited is a wholly owned subsidiary
    of L’Oreal SA based in Paris (600 employees in India)

    46% growth per year – 40 millions turnover


    PESTEL ANALYSIS
    ●
    ● Biggest democracy in the world
    POLITICAL
    POLITICAL ●
    ● Sable situation
    ●
    ● Well developed tax structure

    ●
    ● Economic growth -> 9%; GDP per Capita -> 3.248 USD (2009)
    ECONOMIC ●
    ● Strong currency exchange
    ●
    ● High interest rates, inflation, credit control.

    ●
    ● Population: 1.1 Billion
    SOCIAL ●
    ● High income: 10/15%; Mid income: 60/70%; Low Income: 20/30%
    ●
    ● Languages: Hindi -> 40% + 17 official languages + 800 dialects

    ●
    ● High technology development – Bagalore (Indian Silicon Valley)
    TECHNOLOGICAL ●
    ● A heavy infrastructure for bandwidth and optical fiber.

    ●
    ● Industrialization and urbanization -> deterioration air quality
    ENVIRONMENTAL ●
    ● More taxes being placed on air travel
    ●
    ● The success of hybrid cars and friendly products

    ●
    ● Based on English common law
    LEGAL ●
    ● Trade protection for consumer goods is higher than
    equipment goods
    COMPETITION
    L’Oreal India (luxury division):
    Lancome, Ralph Lauren, Giorgio Armani and Diesel

    • Competition
    – Size of the total domestic luxury perfume market is around Rs 600-
    700 crore (INR)
    – Grow at a rate of 20-25 % year-on-year
    – Many multi-brand companies operating in outlets, boutiques or
    standalone stores
    – Main competitor: Ajmal Perfumes

    • New trends
    – Men´s market
    – High-end perfumes are the new core business
    – The market demands more international brands
    MARKETING

    Patience, perseverance and long term


    orientation are essential for success in
    China.

    耐心，毅力和长远的方向是在中国的成功至关重要
    STRATEGY

    Patience, perseverance and long term


    orientation are essential for success in
    China.

    耐心，毅力和长远的方向是在中国的成功至关重要
    DISTRIBUTION CHANELS

    Patience, perseverance and long term


    orientation are essential for success in
    China.

    耐心，毅力和长远的方向是在中国的成功至关重要
    PRICING

    Patience, perseverance and long term


    orientation are essential for success in
    China.

    耐心，毅力和长远的方向是在中国的成功至关重要

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