Men's Perfume: A Lucrative Niche in Fashion Industry - Essay Sample

Introduction

Speciality in men's perfume has turned into one of the most lucrative niches in the fashion industry. The popularity of the internet and social media have well-documented the launching of several perfume products that by online companies selling their products within a segmented market. For most of the stores within India, online shopping has been key to the success of these products. Men's products also easy to promote, and they are also easy to sell. Men's perfume market depends on several factors, including the trends and labels. As a marketing consultant, it is crucial to analyse the market in terms of the available competitors to determine if it will be a success.

Market Segmentation

Over the past few years, the population dynamics in India have changed tremendously. They have been an increasing growth of the Metropolitan population which is almost the same as the growth experienced in urban areas (Agarwal, and Singh, 2015, 2). Urban cities have also experienced the largest growth rate. Millions of people have discovered the diversity is in fashion and perfume has been key as a result of the cultural demands and the expectations of the modern Man (Rajan, 2019, 4). This has also created a business niche for selling men's perfume for the younger generation who live both in urban and rural areas in India (Malek, 2018, 4). Communities that have colleges have also experienced to demand in men's perfume over the last couple of years.

Target Market

The new perfume products will be known as Zaarperfume, which will be launched in India to represent the new evolution of men who want to express themselves through the use of this scent. Through allowing customers to directly get involved in the market and make their own custom, this product will be a perfect design for individuals. The target market is for people between the ages of 18 to 60. These individuals will have an income which ranges between 1,00,000- 10,00,000 every year. When it comes to the financial plan, such people should have no loans.

Market

Perfume market in India has become one of the most lucrative markets around the globe. India is a subtropical country, and it is a place where people value grooming more than anything else. Perfume forms a crucial part of blooming products alongside clotheslines and other elements of Fashion. When it comes to the size of the perfume market in India, it has grown from 103 crores, where it was in the year 2003 up to 2000 crores in the year 2017. The growth rate of the perfume market is currently at 30%, and it is predicted that within the next nine years, the market will grow by 76%, especially for the Urban citizens. It is predicted that more than 10% of Rural citizens will be using perfume. This means that the market still has potential to grow to even larger sizes than it is today. The following are the major competitors of the company when it comes to the perfume market (Sen, 2019,762). These are also the key leading sellers of perfume in India. They include; Giorgio Armani, Azzaro, Burberry, Chanel, Calvin Klein, ESCADA, Estee Lauder, Hugo Boss, among others.

These big-name perfumes already have brand loyalty and a customer background that is more than the others, especially the newly started companies. The other problem that this company will face within the market is the fact that the majority of the perfume companies have not been surviving and only 5% of them to survive after two years. There have been several anti-fragrance campaigns initiated against the use of these perfumes in public and private sector. This makes it difficult for the newly established companies to improve and to succeed as a new brand in the perfume industry.

Porter’s Five Forces

Competition in the Industry

Competition is a Key Factor in every industry, and the local film industry in India is highly competitive. This is because numerous other companies are offering similar perfumes. Such Industries have been in the market for long and developed brand loyalties as well as customer loyalty (Chatterjee, 2017,3). These renounced perfumes have also shown one of the most frightening trends for the newly formed companies producing perfume. Only 5% of them have been surviving past five years after their formation. The most renowned companies include Burberry perfume, Calvin Klein perfume, Davidoff perfume, Ralph Lauren perfume, among others that sell for a price between Rs 1,000 - Rs 4,000. Some of the most expensive brands include Escada perfume, Gucci perfume, Giorgio Armani perfume, Channel, Givenchy perfume among others that sell for an amount ranging between Rs 4,000 - Rs 9,000

Potential of New Entrants Into the Industry

Getting into this industry has been difficult as the majority of the sector has failed after two years. There are various health products and beauty brands such as natural soaps that have been creeping into the market with various degrees of success. As a result of the demands that come with the market as well as top perfume sellers performing better than others, it is not easy to enter into this market. To succeed, there is the need to have reliable marketing logistics and networks as well as relying on distribution channels that have to be valid enough for the customers. Numerous other online corporations have also been opened that are also operating with the same strategies.

Power of Suppliers

Addressing how easily the suppliers of perfume in India Drive the cost of inputs is also essential. The number of suppliers is vital in this area, and therefore there are few suppliers for perfume in India, making the cost always to be controlled by their suppliers. In the recent statistics, suppliers have been driving the coast high making the industry more open to other suppliers to join so that the prices can be stabilized to be made by the normal consumers.

Power of Customers

In this perfume industry in India, the customers have the responsibility of driving the prices of the perfumes upwards or downwards and is one of the issues that is affecting the industry. The industry will, therefore, be affected by the number of buyers and customers that the company will have and each customer will play a significant role. Perfume has a small, powerful client base, and every client has the power to negotiate for the prices that are better for their deals are there for the company cannot be independent in this sector. What makes the Indian market lucrative is because there are many customers, and therefore despite the power that they have the company will still find sales.

Threats of Substitutes

The substitutes to the perfume products are things such as soaps and oils that others use to supplement and avoid the cost of buying perfumes. There are ways in which these products pose a massive threat to the company. Because of their availability, they will affect the way the customers purchase and get these products.

Reference List

Agarwal, S. and Singh, S., 2015. Customer Progression and Perception about Premium Men's Apparel Brands: A Case of Indian Male Professionals. Middle East Journal of Business, 55(1593), pp.1-7.

Chatterjee, S., 2017. Brand loyalty based on olfactory techniques using discriminant analysis: a case of cafe coffee day store in Kolkata, India. Academy of Marketing Studies Journal.

Malek, Ruhullah Mohiuddin. "Retail Audit Practices of Vini Cosmetics Private Limited-An Analysis of the Fragrance Industry of Bangladesh." (2018).

Rajan, D., 2019. Patterns of using sex appeal and hypermasculinity in men's magazine advertisements.

Sen, R., 2019. The Delineation of Women in the Indian Ads of Perfumes and Deodorant Body sprays A Feminist Interpretation. Journal of the Gujarat Research Society, 21(10), pp.762-770.