- Tell us about your journey to becoming the no.1 perfume brand in India.
The Journey of Riya dates back to 1997 when my father Mr. NK Daga and Mr. LK Soni with a capital of INR 1 lakh from Kolkata started the brand. The aim was to provide every household in India with world-class perfumes at extremely popular prices. The founders shifted their base to a rented place in Delhi’s Sadar Bazaar in 2000. Our revenue clocked 5cr in 2000 and in 2021 we have become the no. 1 perfume brand in India.
- What is so unique about Riya is that makes it different from other brands in the market?
Riya is hyper-local, we did not limit ourselves just to metros and catered to the needs and sensibility of tier 1, 2, and 3 markets. While Riya is available at an attractive price, we never compromised on its quality. This makes Riya different from other brands in the market.
Interestingly, we never spent a penny on advertising. People of India have embraced Riya for its unique fragrance and world-class quality in the last 25 years.
- What made you start your business in the perfume industry?
Perfume is our legacy business and I have been growing up in a house where my father used to talk about perfumes, their processes, and various experimentations with the smell and fragrance. In fact, we are familiar with the aroma of various perfumes since our childhood. When I grew up, I also took a keen interest in the sector. Officially I have been with Riya for the last three years, but I have been working in Riya and learning various nuances of the business for the last six years. When I passed out from London Business School in 2019, instead of searching for a career in any other MNCs, I opted to join the family business of perfume. Now, I am in the process to restructure, diversify and grow the business.
- Tell us about your expansion plan for the future.
In 2019, we founded Purpos Planet to restructure, diversify, and grow the brand Riya with offices in Kolkata and New Delhi. Currently, we are into perfume, deodorant, room fresheners, and air fresheners.
We are present pan-India except for Kerala. We will intensify our business where we are already present and expand to areas that are yet to be tapped.
We are planning to diversify our business and enter into various segments which we will disclose in time. There are some plans for ecommerce as well.
- Can you brief us about the Perfume business in India and the growth opportunities?
Perfume business in India is 790 cr industry excluding E-commerce as per Nielson IQ Retail Audit Report, Jan-Dec 2021. The industry is expected to be 1200 cr by 2025 including e-commerce.
- 25 years into the business. Looking back on when you started, it must have been a tough path for you. How did you face the hurdles that you came across?
Yes, Riya was started by capital of just 1lakh. This was an untapped and unorganised market. Basically, it was completely unknown territory for the founders. It was completely their natural instinct that guided them to do business in the perfume sector. In 2000, Riya started distribution from Delhi and achieved a turnover of 5 cr.
In twenty years’ time, when the brand became no. 1 in India, the Covid pandemic hit the business. I traveled to most of the parts of the country and tried to revive our business as well perfume scenario in India. It gave us some good results. Despite, the pandemic our turnover was 80cr for FY 20-21.
- What is your 2025 goal?
We are now enjoying a market share of 10.8%. By 2025, we see ourselves occupying 20% of the total market share.
- Do you sell your products online? If yes, can you give us some numbers about your sales percentage for both online and offline channels?
We are currently available only offline. So, it’s 100% offline. This is a strategic decision as we don’t wish to create conflict with our general trade channel partners and our hyper-local price-sensitive consumers. However, the brand is indirectly sold by resellers on leading platforms.
- What is your Customer acquisition cost?
We don’t do advertising; hence customer acquisition cost is almost zero.
- According to the Nielson IQ Retail Audit Report, Jan-Dec 2021, Riya was certified to be the Perfume Segment Leader in India by Value Share. Tell us something about it.
We are happy to be certified as the market leader for the third consecutive year by Nielsen IQ.
Riya market share by value has consistently grown in the last three years. At MS value 10.8% in YEC 2021, it is reportedly ahead of other top players
Hinterland, wherein Riya has a strong focus, performed better than urban India according to our feedback in last few quarters.
Riya perfume are quality perfumery products that have been ranked first in value sales in the Perfume segment as per Nielsen IQ which is the industry leader in global measurement and data analytics and the most trusted source for retail and consumer intelligence. The retail index service covers “Grocers, General Stores, Chemists, Cosmetic Stores, Paan Plus Stores and Modern Trade Stores”.
- What is the current “EBITDA” for the company?
In spite of the last 2 tough years being ‘covid stricken’ with all businesses being affected, including perfumes, we still managed to fare well. The current Turnover of the company is 80cr. The company is doing very well, and earning a lap ahead vis a vis the competitors.