BIC Brand’s Evolution Under Ashish Shah-Expansion, Innovation and Market Strategies
Ashish Shah, head of Bindu Incense Craft LLP (BIC Brand), in an exclusive interview with Sugandh India, shared insights into the company’s journey, strategies, and vision for the future. Since taking over BIC in late 2020 he has been managing the brand. With a background in the incense industry, Shah discusses the challenges and opportunities in growing BIC, focusing on domestic expansion, product innovation, and market positioning.
BIC’s Journey and Leadership
Ashish Shah, head of Bindu Incense Craft LLP (BIC Brand), discussed the company’s journey and strategies. BIC became part of his family in late 2020 or early 2021. Since then, the brand has been managed by him, following the demise of the previous founders who had run the company for nearly a decade.
Adapting Business Strategies
Shah explained that BIC had always been a strong market presence, but running it successfully required a different approach compared to his past experience in leading a top incense brand. Initially, the same strategies were applied, but it became evident that what worked in the past did not necessarily work for BIC. This realization led to a more customer-centric and market-driven approach.
Innovation and Product Development
Shah emphasized the importance of innovation, with BIC experimenting with new product segments. Although the chances of market acceptance for these new offerings remain uncertain, the company continues to test and evolve its lineup. Over the past year, the entire product catalogue has undergone a significant revamp, with packaging playing a crucial role. Shah highlighted the challenges of selecting the right product names while avoiding copyright issues.
Focus on Domestic Growth
While product quality has always been a key focus, Shah pointed out that packaging and presentation are equally essential. He noted that BIC has historically been an export-oriented company since the 1990s, with minimal focus on the domestic market. However, given global uncertainties, he now sees the Indian market as the most stable and lucrative opportunity. His goal is to establish a strong domestic presence to ensure financial stability.
Stepping Out of the Comfort Zone
Reflecting on past experiences, Shah acknowledged that his previous organization was a market leader in its segments, making expansion relatively straightforward. However, BIC has provided an opportunity to step out of his comfort zone and explore new avenues. He believes that since BIC is not under constant scrutiny like his previous company, he has the freedom to quietly develop products and enter the market without immediate competition.
Building Brand Recognition
One of the primary challenges he faces is establishing brand recognition. In his previous role, bulk orders were common due to strong market confidence in the brand. However, BIC is still in the process of building such trust among consumers. While some customers continue to support the company, consumer engagement needs to grow to match the level seen in his previous venture.
Key Markets and Expansion Plans
BIC’s strongest markets in India currently include Uttar Pradesh, Bihar, Maharashtra, Gujarat, and Rajasthan. Shah aims to expand strategically, leveraging his extensive network while also exploring new opportunities beyond his previous connections.
Strategies and Market Positioning
He explained that strategies are being tested daily, as what works for one brand does not necessarily work for another. BIC has identified its strength in the 10-rupee box segment, an area where even Balaji struggles to match its volumes. Shah is now focusing on strengthening this segment while also attempting to establish new product lines. While BIC is widely recognized for brands like Panchvati and Shivam, he is working towards expanding consumer awareness to additional products.
New Product Developments
Shah mentioned that in the past few years, Black Musk has gained some recognition, and several other products are showing potential. However, extensive market testing is still underway. His role in the company remains similar to before—developing products, setting pricing, marketing, and managing the catalogue. His two brothers handle blending, sourcing raw materials, and managing labour and factory operations.
Challenges in the Incense Industry
Addressing industry challenges, Shah noted that the incense market remains highly unorganized, with new brands emerging frequently. City-specific competition makes it difficult for national brands to compete with local manufacturers who have lower operational costs. Additionally, consumers in metro cities prefer established brands, whereas smaller towns often rely on locally available products. The cost of entry into the industry is low, leading to a saturation of smaller companies that may struggle to expand beyond their cities.
Strengthening Key Segments
Shah stated that BIC is currently strong in the 10-rupee segment and is focusing on growing its presence in zippers and dhoop products. The company is also experimenting with the premium 20-rupee segment, recognizing that while volumes may be lower, there is a niche market for high-quality, attractively packaged products. He believes that premium offerings enhance the company’s image and demonstrate its capabilities in quality and packaging.
Exploring Additional Product Segments
He also touched upon other product segments, such as branded cups and roll-ons, though he acknowledged that the roll-on market is highly unorganized. Larger perfume brands are entering this segment, increasing competition. While BIC has developed a few roll-on products, they have not yet been launched.
Future Outlook
Looking ahead, Shah remains optimistic about the industry’s future and BIC’s potential growth, stating that strategic innovation and adaptability will be key to long-term success.
