Bottega di LungaVita to go to 150 locations

One of Europe's foremost companies, Officina Farmaceutica Italiana has an experience spanning across 60 years, thus making it a trusted partner for the manufacture and business of Medical Devices, Dietary Supplements and Cosmetic Products. Founded under the name OFI, the brand Bottega di LungaVita signifies the very essence of nature’s purity and healing touch.

The brand is based in the town of San Pellegrino Terme, Italy and has combined its age-old techniques with modern technologies, and is based on tradition, science and innovation. The brand was introduced in India by Arjun Khurana (Managing Director) & Tisha Khurana (Executive Director) in 2013 where they established a joint venture by having 51% share in OFI India. Through this association they wish to increase the presence of their private labels as well.

Franchise India Holdings speaks to Arjun Khurana, Managing Director, Bottega di LungaVita, about bringing the brand to India and its expansion plans. Khurana was a marketing professional earlier.

What is the reason for bringing this brand to India?

India is a country that values ancient traditions. The aesthetic value of Bottega di LungaVita is in sync with the ideologies of the Indian market when it comes to these products. Also, the Indian market has a steady building demand for organic products. This is why we thought of getting Bottega di LungaVita to the Indian markets.

Tell me about your journey so far in the Indian aesthetics market.

We have had an amazing response to our brand in the Indian market so far. Our products are being well accepted by the consumers. The overall market growth is steady and has a good increasing pace. In terms of competing with the top players, I would say that we are just two years old in this market and are hoping to join their league soon.

In which year the brand came into being, what challenges do you face while establishing your brand?

It is a private label of Officina Farmaceutica Italiana (OFI), one of the Europe’s foremost leading companies on development and manufacture of demo-cosmetic, dietary – nutritional products and medical devices. We entered the Indian market in 2013. As a new brand we did face the initial challenges of setting up in this market. When it comes to cosmetics and skin care, the Indian market is flooded with local and international brands, each one vying to get more and more consumers.

How did you overcome these challenges?

Educating the Indian market and the consumers about our brand is what we started with to overcome the challenges. Bottega di LungaVita is a brand that is entirely into organic and natural products. Purity is the key essence of all our products. Also, our production is entirely done in San Pellegrino, Italy. Also, all our products use ancient Italian traditions blending them with modern scientific innovations. All this facts once conveyed properly to our consumers, it took us a step ahead in getting them to try our products. Once the potential customers try our products they definitely come back to us again. Thus we have their loyalty.

How is the competition at present and how do you plan to overcome the growing competition, by implementing new techniques, procedures or marketing strategy?

The consumers in India are knowledgeable and well aware of the various skincare and wellness brands and their products available. They, at the same time, are conscious of what ingredients and processes are being used in the manufacture of the product. They tend to choose what best suits their body and so are open to try new products. This facet of the Indian consumers proves beneficial to our brand. The wide range of our products ensure that there is a definite product for every individual and thus helps us gain their loyalty. New techniques and procedures are always on the agenda but the quality of the product can’t be compromised. When that is maintained, loyalty and retention of customers is ensured. The idea of keeping competitions at bay simply means focusing on one’s product. It is always good to better one’s own product from time to time and let people know about it.

How is it a beneficial area of investment for a start-ups or aspiring entrepreneurs?

The Indian market has a host of opportunities for entrepreneurs. The large population is a plus. The growing middle class population is well educated, well travelled and is looking for products that are not harmful, the ones that cater to their well-being. So, the products are not only for the high-end strata of the society but for anybody who appreciates natural products and understands their true value. A large target audience is always beneficial for entrepreneurs.

Suggest tips for the entrepreneurs who are taking or willing to take franchise with your company. What is your strategy of expansion?

As of now, we are not looking at the franchisee model. We are opening POS in Tier 2 & 3 cities ourselves. We plan to expand by careful selection of the locations and retailers who we want to work with and who would do justice to our products and the brand identity. In November 2014 we launched the brand in Goa. Our products are retailed there through different point-of-sales. Also, famous fashion designer Malini Ramani has also started retailing our products from her boutique.

What are your expansion plans across other untouched regions in India? Any new outlet to be opened in near future? Which potential area in Indian market you are eyeing on and why?

The company at present is targeting malls in tier-II cities, shop-in-shops in neighbourhood cosmetic stores and high streets in tier-I cities. We plan to go to 150 locations by the end of the year after which we will start to expand in the west and then the south subsequently. At the same time we are also focusing on increasing sales through eCommerce media. At present, a small yet significant proportion of our sales volume is generated pan-India from the online medium. This percentage is constantly on the rise and we especially notice a peak during the festive season.

How many outlets so far in India?

Currently we have 5 self owned stores in India & 90+ Point of sales in North & North East of India.

How is it picking up?

We have seen a 60% year-on-year rise in our sales which has motivated us to expand aggressively without franchisees.

Who is your target?

We are competing in different product categories with different Indian & International brands. Some key categories for us are: Anti-ageing, Baby care , Personal care etc.  We are competing with everyone who is selling a product for over INR 500 in these segments. This consists of Indian and International brands.

When are you planning to launch in South India?

We are currently in talks with a large Pharmaceutical company who is taking up distribution in the East & South India. By the third quarter of this year we plan to have at least 15 point of sale and a self owned store in the South.

What is exclusive about these products?

Our products are 100% natural backed by modern scientific technology. Most products are approved by clinical trials. They are Paraben free and sulphate free and made from the purest form of natural spring water in San Pellegrino, Italy.

You established a joint venture by having 51% share in OFI India. Through this association do you wish to increase the presence of their private labels as well?

Bottega di LungaVita under OFI holds about 20 percent share of the European market. In India, the growth is slow yet steady. We are still in a phase where we are trying to reach out to majority of consumers. The parent company is OFI Italy which is largely a contract manufacturer for the last 60 years for some of the best known brands in the world. In India we manufacture for some Pharmaceutical companies as well as for large FMCG brands.

Tell us more about these products?

Two of the scientific technologies developed for these products by OFI – stem cell technology and aqua pairing technology have won the prestigious Nobel Prizes. This speaks volumes about the quality and efficiency of our products.

What is your advantage of being a partner? Why did you select only this company?

I was communicating with many pharmaceutical companies when I came across OFI. I liked it and decided to get it to India. Things worked out well at that time and now we successfully have it here.

How the demand is oversees?

The brand has a good demand overseas. The brand has 20% market share in skincare and cosmetics in Europe.

Where else abroad you are planning to open the stores?

We are working on SE Asia. In Europe, we have more than 800 point of sales.

Are you planning for franchise with any Indian Retailers? If so who and where?

We are not planning anything as such at present. It is a good option to look at and so we will definitely think of it in future.

Any tips for budding entrepreneurs?

While keeping up with the current market trends, one should also have the knack to foresee profit, loss, crisis, growth and strategies to handle and overcome any tangible or intangible obstacles. It is not only the potential of a business, but also the long term feasibility that matters. Keep in mind the volatile and dynamic nature of the market and whether your business is well adept for that. If it is, then go ahead. If not, then the idea is better left as just that - an idea.

How is the aesthetics Industry evolving here in South India?

The cosmetic market in South India is a budding market and has tremendous potential for a brand like ours. We are awaiting the right opportunity to plunge into it.

Where is the better market according to you, the North India or the South India?

South Indians are more aware of new technologies and new cosmetic concepts so it is easy to explain if you have a good product. North India because of its extreme temperatures is a good market for all types of cosmetics.

What is the advantage of an Indian to venture into a company based abroad?

We are customising a world product to Indian needs and bringing a premium brand to India.