Luxury fragrance retailer Parcos plans to double number of stores to 100 in 2 years


Baccarose, which operates luxury Parcos perfumeries, plans to expand its retail presence across the country with the goal of more than doubling its number of stores from 45 to 100 over the next 24 months.

The company has physical stores in 18 cities, including around 11 at various airports in India. Its new stores will mainly be located in Tier 2 and Tier 3 cities such as Jaipur, Thiruvananthapuram and Lucknow. It will open 15 stores over the next nine months, including seven at airports.

The company plans to invest between ??50 crore and ??70 crore for this expansion thanks to internal regularizations.

The 40-year-old Baccarose Perfumes and Beauty Products is a distributor and retailer of international luxury perfumes, skin care and makeup products.

“When Parcos first appeared around 2004 and even today, to an extent, Sephora was the only globally accepted store format where a certain amount of luxury is retailed across the country in that space,” a said Biju Antony, CEO and Executive Director of the company.

“Even department stores like Shoppers Stop, Lifestyle or Central, which sell perfume brands like Issey Miyake, don’t have very high-end luxury brands like Gucci and Versace,” he said. .

Per capita consumption of luxury beauty products has traditionally been low in India, but has increased in recent years with the availability of new brands and access through e-commerce platforms, Antony said.

“In Tier 2 and Tier 3 cities, retail formats are not available. However, with improved logistics and covid-19 helping to develop this whole category of online beauty, we hope that penetration in these cities will improve, ”he said.

During the pandemic, Parcos also started retailing online, as people weren’t traveling or could not shop in malls. While covid has impacted air traffic and international travel, many global luxury beauty brands, which relied heavily on airport footfall, have been battered in the past two years.

“Big business is seeing some rebound happening, but business is still not fully back as international travel has yet to fully open,” said Antony.

According to a report by ResearchAndMarkets.com, the perfume market in India is expected to reach ??13,944 crore by 2024, increasing at a compound annual growth rate of 15.93% over the forecast period, from its 2019 value of ??6,658 crores. This figure largely takes into account Indian perfume makers, but increased adoption of smartphones and the internet, especially in Tier 2 and 3 cities, has made e-commerce sites accessible to customers, making it easier to shop online. line, he said. In recent years, Indians have been exposed to global trends, which has resulted in increased demand for international fragrance brands, he said.

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