Consumer Trends Analysis: Understanding Consumer Trends and Drivers

of Behavior in the Indian Fragrance Market

CT0003IS

Sample Pages

Insight Report

August 2014

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Example table of contents

Definitions Category classifications

Demographic definitions

Summary methodology

Trend framework

Market context

Drivers and inhibitors of consumption

Overall market value, (US$ millions), 2008-2018

Overall market volume, (millions of KG), 2008-2018

Market volume, (millions of KG), 2008-2018, by category

Market volume, forecasted Compound Annual Growth Rate, 2013-2018

Global country comparison of market volume and growth, (millions of KG), 2008-2018

Number of consumption occasions in 2012, by gender

Number of consumption occasions in 2012, by age

Market volume of substitute categories (Millions of Kg), 2008-2018

Demographic cohort consumption patterns

Breakdown of consumption occasions 2012, by gender

Over/under consumption compared to the proportion of society represented

Breakdown of consumption occasions 2012, by age group

Over/under consumption compared to the proportion of society represented

Private label consumption by age group compared to overall market consumption by age, 2012

Consumer trend analysis

Level of influence each trend has on overall consumption, by volume, 2012

Primary market drivers – the top five trends influencing consumption

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Example table of contents - continued

Consumer trend analysis – continued

For each primary market driver:

Sub-trend explanations and analysis

Value of consumption influenced by the trend, (US$ millions), 2013

Volume of consumption influenced by the trend, (millions of KG), 2013

Percentage of consumption motivated by the trend, by category

Percentage of consumption motivated by the trend, by gender

Percentage of consumption motivated by the trend, by age group

Percentage of consumption motivated by the trend, by leisure time group

Percentage of consumption motivated by the trend, by income group

Analysis of how the trend influences consumption habits

Recommendations of how manufacturers can formulate their products to target the trend

How the trend will evolve in the category

Innovation examples

Innovative country-specific launches in the sector

Innovative global launches in the sector

Recommended actions

What trends will increase in importance over the next ten years?

What niche consumer needs can manufacturers meet to help differentiate their products?

Appendix

An explanation of the sub-trends

Detailed methodology

About Canadean

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Reasons to buy this report

This report brings together consumer analysis and market data to provide actionable insight into the behavior of consumers.

This is based on Canadean’s unique consumer data – developed from extensive consumption surveys and consumer group

tracking – which quantifies the influence of 20 consumption motivations within your industry.

Consumer trends analysis An overview of the key demographic groups driving

consumption in your industry, and what their motivations are

for doing so. This enables the reader to identify the most

important trends within the market and also determine

whether beliefs over what influences consumer behavior

within the category are accurate.

Future outlook The report provides insight to highlight the "so what?"

implications behind the data, and analysis of how the

need states of consumers within your industry will evolve

in the short-to-medium term future.

Recommended actions Strategic recommendations of how to capitalize on the

evolving consumer landscape are offered, allowing

product and marketing strategies to be better aligned with

the leading trends in the market.

Product innovation examples Examples are provided of innovative international and

country-specific product development within your

industry, with analysis of how these products effectively

target the most pertinent consumer need states.

Demographic analysis Key demographic groups driving consumption within the US

market are identified. The figures showcase the number of

Dairy occasions attributed to specific age groups and

genders, as well as identifying whether these demographic

groups "over" consume in the category.

Market sizing Market value and volumes are given over 2008–2018 for 10

leading countries across the globe. Coverage includes

major European markets, the US, and the emerging

markets of Brazil, Russia, India, and China.

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!

Canadean has identified nine mega-trends that drive consumers and these can be broken down into 20 sub-trends

Aspiration

Beauty

Better Value

Busy Lives

Changing Age Structures

Changing Life Stages

Connection

Experience Seeking

Fun & Enjoyment

Individualism

Indulgence

Media

Technology

Trust

Urbanization &

Migration

New Gender

Behaviors

Personal Space & Time

Quality Seeking

Health

Ethics

MEGA-TRENDS:

CHANGING

LIFESTAGES

CONNECTIVITY

CONVENIENCE

ETHICS

EXPERIENCE &

ENJOYMENT

HEALTH &

WELLNESS

INDIVIDUALITY

TRUST

VALUE

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The Indian Fragrance market, currently valued at INR14.6 billion, is forecast to register high growth over the next five years

Market value, (INR millions), 2008-2018 Market volume, (Unit millions), 2008-2018

CAGR 2008-2013 XXX%

CAGR 2013-2018 XXX%

CAGR 2008-2013 XXX%

CAGR 2013-2018 XXX%

The Fragrance market in India witnessed high growth in terms of both value and volume over 2008 to 2013. A

growing economy, increased urbanization, and a rise in purchasing power is likely to drive sector growth, at a

CAGR of XX% in value terms during 2013-2018.

The rising influence of western culture, the growing trend for grooming among urban Indian men, and the growth

of Fragrances as a gifting option, will drive the rise of Fragrance consumption in the country. Market volume is

forecast to grow at a CAGR of XX% during 2013-2018, in terms of millions of units.

2008 2013 2018 2008 2013 2018

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Men and Younger consumers enjoy the most Fragrance occasions in India on an annual basis

Number of occasions per year by gender, 2012

Number of occasions per year by age group, 2012

Women:

Occasions: XX billion

Per person: XX

Men:

Occasions: XX billion

Per person: XX

Indian men have a higher number of Fragrance occasions compared to women, indicating the growing importance

of grooming among this cohort. On average, consumers aged between 10-15 years enjoy the most Fragrance

occasions per person in India. Following rising Western influences, young consumers are indulging in Fragrances

more frequently and see them as the perfect way to express themselves.

Tweens & Early

Teens:

Occasions:

XX billion

Per person: XX

Early Young

Adults:

Occasions:

XX billion

Per person: XX

Pre-

Mid-Lifers:

Occasions:

XX billion

Per person: XX

Mid-Lifers:

Occasions:

XX billion

Per person: XX

Older Young

Adults:

Occasions:

XX billion

Per person: XX

Older

Consumers:

Occasions:

XX billion

Per person: XX

Kids & Babies

Occasions:

XX billion

Per person: XX

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The Changing Age Structures trend influences INR$XXX million worth of Fragrance consumption in India per annum

Income Leisure time

Gender Age group

10-17

XXX%

18-24

XXX%

25-34

XXX%

35-44

XXX%

45-54

XXX%

55+

XXX%

0-9

XXX%

$XXX US million

XXXL million

The Changing Age Structures trend influences XXX% of all volume consumption within the category.

Percentage of consumption motivated by the trend within each sub-category:

Female fragrance: XXX% Male Fragrance: XXX% Unisex Fragrance: XXX%

% of consumption influenced among each age group % of consumption influenced among each gender

% of consumption influenced among each leisure hour group % of consumption influenced among each income group

XXX% XXX%

0-1 hours

1-3 hours

3-5 hours

5-7 hours

7+ hours

Highly Affluent

Better Off

Moderate Income

Hard Pressed

Rather Not Say

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How the Changing Lifestages trend influences Fragrances consumption habits in India

In a developing economy consumers are seeking Fragrances

that suit their lifestage

The growing presence of fragrances in the Indian personal care

market means that its usage is becoming increasingly popular.

The product is branching out from being a luxury, used only by

the wealthy on special occasions, and into a more everyday item

with increased mass market appeal. This encourages

consumers to seek out the Fragrances that best reflect their

current lifestage.

In such a rapidly growing economy, many employees,

particularly those new to the workforce, are under pressure to

succeed in the workplace. Hence, they choose to wear

fragrances that add to their professional appearance, believing

that this professional image will contribute to their success.

Younger consumers undergoing the transition from children to

teenagers and then young adults are also likely to choose a

fragrance that reflects their lifestage. These consumers often opt

for a sweet and fresh fragrance that adds to their confidence and

helps them to feel more grown-up.

Although the older end of the population seek products that

inspire youthfulness, they are still likely to choose something

more classic, opting for traditional and established fragrances

that reflect their history and identity.

This Veronica

fragrance is targeted at

young women. The

image of a confident

women is intended to

attract a young, female

audience.

Afnan’s Basma fragrance

is a concentrated

perfume with a traditional

scent and packaging. It

appeals to older

consumers and appears

sophisticated rather than

old and dated.

Use of packaging to attract the key target

audience

Traditional scents and packaging to

appeal to older consumers

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What trends will increase in importance over the next ten years?

The Individualism trend will

increasingly motivate the

consumption of Fragrances as

consumers look to customize

their choices. Consumers will

demand new and innovative

smells that reflect their

personal preferences.

Manufacturers need to

continually produce new and

novel scents which will allow

consumers to stand out from

the crowd. Packaging should

also be tailored to the

individuals that are being

targeted including the design

of the outer box and bottle.

As the Fragrances category is

expanding, evolving gender

behaviors will become

increasingly influential.

Manufacturers will need to

consider the potency versus

the delicacy of scents targeted

at each gender, with women

often seeking more subtle

scents while men look for

something stronger.

Furthermore, women may be

more inclined to carry a purse-

size fragrance for top-ups

whereas men require a larger

size pack to use only in the

home.

Many rural dwellers are

heading to big cities in search

of higher paid jobs and

improved living standards. As

such, there are increasing

numbers of consumers taking

office jobs. It is generally

believed that a fine,

professional scent can

accompany a professional

office appearance.

Manufacturers and marketers

need to capitalize on this with

the formulation and marketing

of sophisticated fragrances

intended for daily use in the

workplace.

Canadean predict that the following secondary drivers will rise in importance over the next decade to

become increasingly influential motivators of consumption within the market.

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Summary Methodology

MARKET DATA

• Method: Analyst triangulation of

consensus numbers based upon

comprehensive primary and desk

research as part of an international

research programme.

• Coverage:

• 50 Countries fully researched

• Category and segment breakdown

• 8 channels

• Value and Volume data

• Internationally comparable data

• 100% standardized definitions

CONSUMER DATA

• Method: Extensive consumption surveys

and consumer group tracking with strict

age and gender quotas to ensure

nationally-representative results.

• Coverage:

• 10 Countries

• 20 Consumer Trends

• 26 Consumer Groups

• Category breakdown

• Integrated market sizing at the

country and category level

• Interim 2013 Consumer data

generated by mapping 2013 Market

size data onto 2012 Consumer data

consumption values

Details on the methodology for both of these research programs can be found in the Appendix.

This report is comprised of two data research programs

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