With $3b annual sales, ME perfume sector smells of success

Managing Director Salim Kalsekar told Khaleej Times in an interview that the perfume industry is in a period of expansion and diffusion, with new fragrances, a new emphasis on bottle design, and the use of celebrity endorsement to boost sales.

“With oils and fragrances ranging in price from a few dirhams to thousands, it is big business,” he said. Excerpts from the interview:

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How did the idea of establishing a perfume brand like Rasasi occur?

Rasasi believes in reaching out to customers and addressing their needs. And what better way to do this other than launching a perfume that stays with the personality for a lasting time. The company offers high quality and excellent value fragrance products.

Rasasi operates from the state-of-the-art 225,000 square feet manufacturing facility, situated at the Jebel Ali Free Zone.

The products are sold across 50 countries. Rasasi operates more than 90 showrooms in leading malls and prime market locations across the Gulf Cooperation Council.

AbdurRazzak Kalsekar founded Rasasi Perfumes Industry LLC in 1979 in Dubai. He is currently the Chairman of the Group.

What kind of challenges does a perfume manufacturer face in a market like the UAE, where there are multiple perfume brands both local and international?

I would say this is a very exciting phase for perfume industry in the UAE and region. Despite its ancient Arabic philosophy, the perfume industry in the Arab world is adapting, not only to international competition but also to changes in the region's retail sector.

Once sold mainly in traditional souks, perfumes have migrated into the shopping malls springing up across the region.

This kind of competition is good for the sector overall but for Rasasi, we have diversified our product lines, offering both traditional Arabian perfumes and Western perfumes which is a blend of a more contemporary, international style.

Primarily, we try and evolve amidst our target audience, which includes GCC nationals, Arab expatriates, Europeans and Asians. We have a wide range of products catering to all income group consumers in the Middle East.

Are fragrances trend-driven? How do you overcome this disadvantage?

Yes, they are trend-driven. Trends have changed significantly in the industry. Our in-house research and development team constantly endeavours to collate and extract the best fragrances for its customers in line with the trends and preferences.

Overall, as far as our product development goes, our businesses are driven just as much by the appearance of their bottles as by the fragrances within them.

Are the retros - fragrances from yesteryears - making a comeback?

Vintage classics comes a full circle because of their strong heritage and fascination with consumers.

We are experiencing a revival of the popular perfume trends from past, but the overall trend is towards today's youth styles and preferences.

How does a manufacturer go about research for a successful fragrance?

It is paramount for any manufacturer to gauge the pulse of the consumers, their needs, preferences and requirements.

The R&D team helps the company get an in-depth understanding of consumer and market trends, which helps the company to offer refreshing fragrances with world-class quality.

What is the marketing strategy adopted to establish a perfume?

I personally feel there are no set formulae for marketing a perfume. All we believe is that the marketing should be strategic, with various elements woven to get the desired marketing objectives.

Among these factors, which pave the way for effective marketing are the look and feel of the perfume, such as packaging and its contents. This could include, but not limited to: the cost, its concentration, celebrity or designer connections, if any, stories around its origin, packaging, free gifts, if any.

Are there fragrances which appeal to both genders?

Yes, there are, take for instance with Rasasi; we have mastered the art of fine fragrances, irrespective of whether they are for men or women. The company speaks the language of scents through its knowledge of every need-state, mood and personality, revealing the inner meaning of one's choice and one's olfactory psychology.

What makes offerings from Rasasi unique is that there exists a different perfume for every state of mind, for every occasion, for every reason and for every season. There are certain notes in a fragrance that communicate a particular mood/ personality trait and with the right blend of notes; and Rasasi offer fragrances for all need-state, irrespective of whether it is for a men or women, so there could be scenarios where the same fragrance appeals to both genders. This is the industry norm.

What are the different steps in the creation process?

An important thing to know is that there are three types of notes when it comes to making perfumes.

There are the base, middle and top notes. These vary depending on how long the scent will last on the skin.

How many fragrances do you create per year and how is the programme decided?

As far as our product and merchandise growth is concerned, we release a new product keeping in the consumer's preferences and trends from time to time.

How do you define standards and is quality rising generally among the local companies?

Certainly, we are all evolving with the time. The perfume industry is in a period of expansion and diffusion, with new fragrances, a new emphasis on bottle design, and the use of celebrity endorsement to boost sales.

And, with oils and fragrances ranging in price from a few dirhams to thousands of dirhams, it is a big business. Revenue from perfume sales in the Middle East is an estimated $3 billion (Dh11.01 billion) a year, with the UAE accounting for one quarter of sales.

Apart from traditional Arabic fragrances is Rasasi involved in composing a completely Western fragrance?

We have diversified our product lines, offering both traditional Arabian perfumes and western perfume lighter blends, in a more contemporary, international style. We try and distinguish our products; and at the same time branch out, both in product offering as well as into new fragrances. Primarily, we try and evolve amidst our target audience. We have a wide range of products catering to all income groups and consumers in the Middle East

Our R&D team is also working overtime to suit the needs and preferences of our customers in the region.

Can you name some of the perfumes of Rasasi over the years that have been landmarks in terms of the perfume style or their impact on the market?

Today, Rasasi manufactures a wide range of Oriental and Western perfumes with a strong distribution network spread across the world and a retail network throughout the Middle East.

Our perfumes are rated among the top fragrances in the world. We have a wide range of products under various categories such as finished perfumes-Arabian, finished sprays, Dhan-el-Oudh and Bukhoor, among others.

How was the year 2010 in terms of sales, revenue and profits?

We have seen a decent growth over the last five years. In sales, we have been growing at a healthy rate.

business@khaleejtimes.com