Retail Nov, 09 2011

Fragrance of success

By Neha Prashar
Fragrance of success

Keeping in mind India’s slow progress in the fragrant market, Perfume Station was launched in India in 2010. Sharing the expansion plans of the brand via franchising is Sandeep Kapoor, CEO, York Transnational Ltd.

Neha Prashar (NP): Kindly share with us the origin of Perfume station? Share with us the journey of Perfume Station in India? Also elaborate on the brand's international presence.

Sandeep Kapoor (SK): Perfume Station belongs to York Transnational Limited a Hong Kong based company having 16 years of experience in Perfume industry. The brand has just started its journey in India and it has been very good so far. There are some specific country related problems in India but I think we understand the Indian market much better now and we will travel the route with much more ease. The brand has international presence across 15 countries including Russia, Singapore, USA, Ukraine and Mexico.

NP: When did Perfume Station enter the Indian market? What inspired the company to take up the franchise route for expansion?

SK: We started our first store in July 2010. I believe that in any market if you have a proven track record then franchise route is the best since it gives the maximum expansion possibilities in minimum time.

NP: Presently, the company has five stores in India. What is the ratio of your franchised and company owned stores?

SK: Only one store in Jodhpur is company owned. All the others are franchised.

NP: What kind of investment is required by a franchisee to open a Perfume Station franchised outlet in terms of money, area and time?

SK: We have 2 modules:

  • Stand alone shop with a minimum area of 200 sq. ft. This requires a total investment of Rs 7 lakh and can be made operative in 45 days after the location has been finalised. This works very well in all Tier II and III cities.
  • Kiosk model with an area of 64 sq. ft requiring a total investment of Rs 4.20 lakh and can be operative in 30 days. This is specially designed for super markets, shopping malls and shop in shop concept in metro towns.

NP: What is the eligibility criterion for selecting the right franchise partners? Is it essential to have a similar background?

SK: The important criteria for selecting a franchisee are:

  • Availability of required finance
  • Entrepreneurial attitude
  • Involvement in the business

NP: What is the USP, expected ROI and the break even period of the brand?

SK: Ours is a 100 per cent perfume store providing a vast range at affordable prices and a perfect ambiance. The ROI is 40 – 60 per cent per annum depending on the module and operating profits comes within three months of operations.

NP: Give us a general picture of your company's expansion plans? What is your vision for Perfume Station?

SK: We have plans to open 15 stores by the end of 2011 and 50 by end of 2012. The vision is to make perfumes available to the masses so that they can enjoy this product and break the myth that perfumes is meant only for the rich and famous.

Related: Personalisation is the key to profits

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