Azafran Innovacion on its “aggressive” expansion plans
1. What has been Azafran's stand out moment to date?
One of our products Nutri Active Advanced Skin Firming Cream, an anti-ageing cream, won a Gold Winner Award at the Pure Beauty Awards London in 2015 in the Best Organic Product Category. This was a particularly proud moment as we were amongst other international brands competing for this category award.
2. When did Azafran first enter the personal care market?
Azafran Innovacion Ltd was incorporated in 2007. Following this, we completed rigorous R&D efforts for our first-to-be-launched products.
We invested in three years of soil testing to make sure the farmlands where we grow the ingredients are pesticide/chemical free. This resulted in us receiving Ecocert and USDA certification.
Our current range was first launched in 2012 and since then, we have been developing new products and adding to our range annually.
3. Why have you decided to push for expansion in 2018?
As the concept of organic is getting popular among consumers, we feel it is the right time to increase our reach across India.
4. What market conditions are enabling this to happen in 2018 that weren't present previously?
One major factor is the increased awareness among consumers around using organic/natural products compared to chemical ones and their long-term side-effects on the skin.
5. How do you plan to "aggressively" expand your distribution network?
We are increasing the number of distributors across India and are entering new regions. This will lead to the rapid increase in targeted outlet numbers.
6. Are these developments set to remain with APAC? If so, what markets are you focusing on?
APAC is an important region in our international expansion goal and we would like to be there soon. Australia, New Zealand, Japan, Singapore, Hong Kong and China are priority markets for us in the APAC region.
7. Why have you selected these APAC markets to enter?
These markets show higher consumer preferences and acceptability towards better organic products. They also have existing dynamic beauty products markets.
8. What is driving Azafran's increased sales?
The current increase in sales is driven by two factors, one being the new markets that we are entering and the second is the result of our loyal customer base.
9. How was this number of stores selected?
This number of stores have been selected based on the proposed area and its potential. We also map the sales of other brands, which we benchmark, to achieve a minimum sales target for that particular store.
10. What is the strategy behind this decision?
Our strategy is to gain market share in the stores where all other mainline brands are present and thus, create a customer base of our own.
11. Is Azafran receiving investment to achieve this?
No. Azafran Innovacion Ltd is a self-sustained business vertical.
12. What do you hope Azafran will have achieved this time next year?
We hope to have successfully launched our products in 10,000 stores across India by this time next year.
13. What will be next on the agenda?
We are working on products which will touch different aspects of consumers' lifestyles. All these products will be sustainable and environmentally-friendly.