Varanasi is a big market for incense sticks but competition is tough.
70% of customers are brand loyal: Abhishek Gupta
Brand loyalty is on the rise in Varanasi, one of the oldest cities in the World. Seventy per cent of the consumers prefer branded dhoop, agarbattis, dry dhoop sticks, sambrani cups, and roll-ons. This demand for branded products can be attributed to the Kashi Vishwanath Temple and also Varanasi being a prominent centre for Buddhism as well, attracting millions of domestic and international tourists year-round. As a result, an extensive range of products from all major brands across the country is readily available in the region. In a recent conversation with Sugandh India, Mr Abhishek Gupta, the head of the Kanhaiya Lal-Ramlal firm, which has been dealing in incense sticks for over four decades in Varanasi, observed that the market for incense sticks is substantial in the region. Due to Varanasi being a tourist destination, products from all major brands are available here, creating a highly competitive market. The presence of numerous brands and their diverse product ranges prevents any single product from dominating the market.
Mr. Abhishek Gupta told Sugandh India that the brands of all the companies with competitive quality and rates are present in the market and due to competition, all of them offer schemes on a large scale to increase their sales. There are article and target schemes and when the sales target is met, the distributors and retailers are given various items. There is also a 6 month target scheme. Gift articles include bags, stools, T-shirts, plates, umbrellas, bedsheets, towels, bags and even gold or silver coins. Companies are now also giving gifts to consumers along with the products. He said that apart from the old fragrances, people are also demanding new fragrances like oudh, loban, fruity and fancy fragrance. In response to a question, he said that the market for premium products here has now increased to 25%. 50% medium and 25% economy range products.
Mr. Abhishek Gupta, the third generation of Kanhaiya Lal-Ramlal firm, Varanasi looks after the operations. Currently he takes care of distribution of around fifteen agarbatti brands including Darshan, Shalimar, Denim, RKT, Moksh, and Liberty. The firm has a network of 40 to 45 distributors and operates in around 50 kilometres of Varanasi. The firm also supplies to Chandauli, Ramnagar, Jaunpur, Bhadohi and Ghazipur. He said that people here demand new fragrances. This is why companies offer all varieties in the market. In response to a question, he said that people are moving towards bamboo less products. Due to this, the demand for incense sticks has decreased in the last four years and the market for dhoop products has gone up to 70% here. Dry sticks are in the highest demand among dhoop products. People prefer dry sticks, cones and cups because it is difficult to make wet incense and it also produces more smoke.
He told Sugandh India that the highest-selling dry stick products are those with MRP ₹15, which are sold for ₹12. There is a trend of agarbatti products with MRP of ₹25, ₹50, ₹100 and ₹150. Traditional wet dhoop enjoys brisk sales with MRP of ₹10 to ₹20. The trend of products with MRP of ₹10 in incense sticks has reduced. The products with 70 MRP being sold at 50 to 60 rupees are more popular. Larger zipper packs of 400 and 500 grams are also in trend. Regarding the dhoop market of Varanasi, he said that in wet dhoop, Denim, ZED Black, Kuber Gold and Sachhe Sai are the most selling products. Kuber Gold retails at an MRP of ₹25. Hari Darshan and Dev Darshan are also doing well. RKT are also popular. Moksh’s portfolio is more focused on dry sticks and incense sticks. Most popular brands in Dry Sticks include ZED Black, Darshan Black Stone, Balaji, and BIC ranging from an economy range of ₹10 to a premium range. Balaji and BIC are considered the best and their jar packs are also available. However, now most of the companies now have jar packaging. Forest’s dry stick, cone and wet dhoop are sold in the premium segment at an MRP of ₹70. Krishna Kala, Shreedhan, and Misbah enjoy good sales. Denim Pooja Path also has good sales. Maaja from Ahmedabad is also popular along with Kalpana, JB, Nishan. Delhi’s Graha Shanti, Kavya, Tirupati, Hari Darshan and Dev Darshan are also present in the market. Items from Bengaluru are sold the most.
In response to a question regarding the market of incense sticks in Varanasi, Abhishek Gupta said that Tiranga in box packing is widely sold in the rural areas of Varanasi. Mansi from Ahmedabad also sells as a top brand and large packing of 400-gram zipper. ZED Black, Cycle, Forest, Darshan, Parimal Mandir, Moksh, Balaji and BIC have good markets. Delhi’s Bhavna, Kavya and Grah Shanti are also very popular. Apart from this, products from Jaipur, Chandigarh, Himachal Pradesh, Kolkata, Pune, Indore, Satna and Nagpur also sell here. He said that the market for premium products is increasing in Varanasi. Cheap and good products of Nagpur from RKT and Rocket are also sold here. Loban incense sticks are available in 200 and 400 grams.
The market for Sambrani sticks is increasing here. Zed Black, GT, Shrifal, Patna’s Sugandhi and Laxmi are among top sellers. Naivedya is at the top in the Sambrani Cup with GT, Moksh, Z Black, and Forest’s Bahubali being among top sellers. Most of the brands present in the market have their sambrani cup products present in the market. Products made up of guggal, sandalwood and cow dung are also in demand. Here the market for 12 cups is more at ₹50-₹60. Real and Krishna Kala are in demand in premium segment. There is also a good market for loose and unbranded incense sticks, which are sold by weight. Along with the local brands of Varanasi like Gaurav and Kisan, loose products of Patna and Gaya are also sold here.ITC Mangaldeep is doing well. It is sold in general stores and paan shops. They also have dhoop, dry sticks, cones and cups and also provide schemes.
He said that the demand for chandan tika, roll on and puja materials is increasing in Varanasi. Hari Darshan and Dev Darshan are most popular in chandan Tika. Bhavani Shankar is most popular in ashtagandha. There is more demand for cheaper and medium range in roll on and perfumes. Shridhan and Nikhil are in premium and their incense sticks also sell. Aerocam is the top seller in roll on. Balaji’s Roll On and Ashtagandha are also present in the premium segment. Pandit ji of Delhi is also in demand for tika products. Camphor segment is dominated by local manufacturers. Among other brands, Mangalam, Saraswati, Himalaya, Leo are popular. Brands from other states are less popular due to their high rates because of GST. He said that with the rise of mosquitoes, the market for mosquito incense sticks has increased. Dhoop Chhaon brand of comfort, Alvida, freedom dominate the market. Apart from this, many brands from Bihar and Madhya Pradesh are also present. In response to a question, he said that most of the companies here work on advance payment. The credit system prevails less here. Credit for only 10-15 days is provided only if the relationship is good between company and seller.