The Hindu Business Line : Clarins now plans to launch women's perfumes

Mr Gerard Delcour, Membre du Directoire, Groupe Clarins, holds up a bottle of perfume for men, Chrome. Mr Delcour was in Mumbai to launch Azzaro's latest fragrance, Visit. — Shashi Ashiwal

Mumbai , Feb. 3

CLARINS, the owner of the men's perfume brand Azzaro, has plans to enter the Indian market with its feminine equivalent, Thierry Mugler perfumes, in March 2004, and will initially be retailed at six to seven stores. Last week, Azzaro unveiled a new fragrance for men called `Visit'.

While France and the US are its main markets, according to Mr Gérard Delcour, Membre du Directoire, Groupe Clarins, penetrating the Indian market is gaining importance.

To illustrate India's potential, and simultaneously the attraction it holds for perfumers, Mr Delcour said that the US market accounted for $25 million in revenues, with a retail network of 2,600 stores. In contrast, the revenue from the Indian market was $700,000 with a presence in 87 retail stores. This works out to $9615.30 per store in the US, and for India $8045.97 per store. He added that business was pegged to grow at 25 per cent to 30 per cent year-on-year. The company began operations in India with an agreement with Baccarose in 1997 to market its perfumes. This year, it is poised to launch Mugler products that include bath products, skincare and perfumes.

Clarins has a turnover of 900 million euro and is a leader in skincare. In its first year of joining Clarins in 1996, Azzaro's revenue was 53 million euro and this is due to touch 105 million euro this year.

Today, worldwide, 28 per cent of Clarins' business comes from the US market, 12 per cent from France and another 12 per cent from travel retail. In 2003, Chrome accounted for 19 per cent of the increased business for Azzaro. Azzaro's best-seller so far has been Chrome for men, while Angel from Mugler is ranked sixth in the world.

According to Mr Delcour, 3 per cent of Azzaro's revenues are accounted for by Brazil, and India will follow the similar path. This, he said, was because the country's economy was booming, and the distribution network was expanding on an average by 10 per cent to 12 per cent.

The perfume segment promises to be even more vibrant in India than Japan, a more developed market. Mr Delcour added that perfumers found it easier to sell their products in India because Indian regulations were easier to understand than in China, the business culture was similar and it was easier to spread the message through Indian magazines. This despite both nations presenting similar business potential.

Plans watch foray

Groupe Clarins, which owns the perfume brands Azzaro and Thierry Mugler, is also planning to enter the worldwide watch segment with a premium offering for men under Azzaro brand in March 2004 and another for women under the Thierry Mugler brand in 2005.

The company plans to unveil its premium offering at the annual trade fair in Bale in Switzerland this year. Mr Delcour said that the watches would be manufactured by a Swiss partner, because the company wanted its watches to sport the `Swiss-made' tag.

The watches, he said, would be priced at 490 euro (about Rs 27,440) each, and would have a three-year guaranty. The Thierry Mugler offering would be launched in 2005 and be priced closer to Christian Dior's offerings — at around 700 euro (about Rs 39,200).

The watches will be launched first in France.