In India’s evolving fragrance market, a new wave of companies are bridging the gap between luxury and affordability. By offering high-quality perfumes priced between ₹1,000 and ₹3,000, companies are giving consumers to explore diverse scents without the premium price tag. This shift reflects a growing openness among Indian consumers to experiment with homegrown brands, signalling a dynamic change in the nation’s olfactory preferences.

The sector has attracted $27 million in funding from 2019 to 2024, according to data from market intelligence platform Tracxn, with the maximum fund flow of $14.2 million in 2021.

Lucknow-based Isak Fragrances is expanding its product range and price points, said founder Vidushi Vijayvergiya, with an aim to cater to the evolving preferences of Indian consumers who are open to experimenting with homegrown brands.

“We cater to users who are looking for fragrances between ₹1,000 and ₹3,000. And in this gap is an aspirational audience that wants to try high quality, premium products,” she noted.

Focus on accessibility

Indian brands are introducing high-quality fragrances. Smaller packaging, such as travel-sized options, makes premium-quality scents more affordable and accessible, noted industry experts.

Isak wants to bring in both customers who know about and have tried a variety of fragrances as well as those who haven’t used anything beyond deodorants. “We’ve done some very different, unique ingredients that remain the highlight in each fragrance,” noted Vijayvergiya.

Cosmetics brands are tapping into the opportunity as well. Evolvence India-backed Renee Cosmetics and Plum, backed by Unilever Ventures, are also looking to tap into the segment.

“We have very detailed guides on fragrance notes, their benefits and how to choose the right scent for the right occasion. In addition to this, we work with fragrance experts and influencers to create engaging tutorials and workshops that help our customers understand the art of fragrance selection,” said Priyank Shah, co-founder, Renee Cosmetics.

Plum is looking to expand our fragrance offerings, with a particular focus on perfumes featuring luxurious packaging and long-lasting formulations, said Shankar Prasad, Founder & CEO, Plum.

Gone with the wind

“Our fragrance portfolio accounts for over 30 per cent of the total brand’s business. We are confident that this direction will resonate well with our consumers in the coming years,” said Prasad.

Companies are also looking to tap into tier 2 and 3 markets as well as adopt an omnichannel approach to reach a wider market.

“We see strong traction offline through partnerships with beauty stores across cities and are planning to expand into tier 2 and tier 3 cities to ensure geographies have access to products through OG Beauty,” said Ashish Chanchlani, Founder, OG Beauty.

Shah noted that Renee Cosmetics’s strategy to increase distribution will also focus on increasing its presence in tier 2 and 3 cities.