Date:15/02/2006 URL: http://www.thehindubusinessline.com/2006/02/15/stories/2006021501710800.htm

Back Retail sector smells fragrant for luxury maker YSL

Ambar Singh Roy

Kolkata , Feb. 14

THE buoyancy in India's retail sector has provided a shot in the arm for luxury goods manufacturers. Global leaders in fragrances and beauty products are especially enthused with the boom in the domestic retail business. Among those that have stepped up efforts to cash in on the development is multi-brand luxury goods maker YSL Beaute, the fragrances and cosmetics division of the Gucci Group.

While on a visit to Kolkata on the occasion of the all-India launch of Cinema, "the new fragrance for women by Yves Saint Laurent, which is both classic and modern," Mr Mohammed Aljeda, Vice-President & Managing Director of YSL Beaute, Middle East, said the global fragrances and cosmetics major is looking at the Indian market "very seriously." Mr Aljeda said that with the retail sector in India growing exponentially, YSL Beaute is gradually positioning its fragrances and cosmetics offerings in the prestige segment in select cities. He said the company is not looking for immediate returns, but gains in the long-term.

Most of the nine YSL fragrances brands were already introduced in the Indian market, and some others would be launched soon, he added. In the future, the launch of YSL offerings in India will be done simultaneously with the global launch of those products.Asked if YSL is open to the idea of roping in an Indian brand ambassador as part of its marketing strategy for the Indian market, Mr Aljeda said taking such a decision is the prerogative of the YSL headquarters in France. "However, to be considered, the local ambassador must be in line with the philosophy of the brand," he said.

Mr Tony Chin, CEO of Beauty Concept, which is the exclusive distributor in India for YSL, among other global fragrances and cosmetics brands, told Business Line that luxury product sales account for around 10 per cent of total retail sales in India. Out of this, fragrances account for a major chunk in value terms. "With so many malls coming up in the major cities, I expect sales of fragrances to grow in double digits," he said.

Beauty Concept distributes global brands, such as YSL, Bvlgari, Davidoff, Ferragamo, Jennifer Lopez, Kenneth Cole, Marc Jacobs, Joop, Lancaster Cosmetics and Benetton.