'Made in France' remains the biggest driver of per- fume brands though, of late, creating a fragrance has become an alchemy of ingredients, processes and people from the world over. We are, however, seeing a shift in consumer tastes from big brands to niche offerings. A duty-free store is not where they can be spotted though. They are typically found in quaint little stores that provide beautiful spaces to enhance a shopper’s experience. A few decades ago, there used to be around 30 fragrance launches a year. Opium from YSL, L'Air du Temps by Nina Ricci, and Anais Anais by Cacharel are just a few of the big names from that era. Today, with more than a thousand perfume launches a year, the luxury consumer is beginning to tire of the repetition. She certainly does not want to smell like the next person. Discerning users are looking for something unique. Hence, the preference for less-marketed brands or fragrances that have chosen a more subtle path to the consumer. ‘Editeur de Parfums’ Fredric Malle, Serge Lutens (maker of Ambre Sultan and Tubéreuse Criminelle), Romani Ricci’s Juliette Has A Gun, By Kilian by Kilian Hennessy from the LVMH founding family, the iconoclastic fragrance house L’Artisan Parfumeur — all names associated with the trend of keeping it small and beautiful. Both creators and consumers think of the perfume as a jewel, and the making and buying of perfumes as akin to buying jewellery. And what’s surprising is that these fragrances are only just a little more expensive than mass-marketed popular brands. WHIFF OF CLASS: Serge Lutens, Romani Ricci and Kilian Hennessy are among the top perfume makersThe situation now is, on the one hand, we have more people wearing fragrances, while on the other, luxury consumers are moving away from the big brands to brands we’ve never heard of. Though a brand plays a big role when it comes to fragrances, it is not the only thing a perfume lover is looking for. At the end of the day, a discerning consumer will not wear a fragrance unless he loves it. A brand is important in getting the consumer to try the perfume, but it is not a sure shot way of getting him to buy the product. The olfactive quality is most important; so it’s not just about the brand, it’s also about the name of the perfume, the colour, and the packaging. Every few years, as fashion changes, the trends in fragrances change too, though not as fast. This is mostly because a fragrance is sensorial and very closely linked to memory. Right now, the world is going through a fruity moment. What we’re seeing are fruity notes. But, again, fruity notes mean different things to different people and different cultures. For example, Brazil is a fruit-loving country and people love fruity smells. In India, people don’t always like to wear what they eat. So, there has been a slower take-on of these fruity notes but we’re seeing this changing and fruity notes are picking up in India as well. Fruity notes have been popular in lip glosses and products like shampoos. In fragrances, they go well with a combination of flowers like honeysuckle and jasmine. This combination of fruity and floral will stay for long. Interestingly, we are seeing fruity notes in men’s fragrances as well. One example is Kokorico by Jean Paul Gaultier. It has a green fig note. Figs are not a very sweet fruit like strawberries, so they can work in men’s fragrances. The perfume consumer is becoming increasingly aware and knows what she wants to wear. This can be seen in the rise of fragrance blogs like nowsmellthis.com and fragrantica.com. The levels of knowledge and understanding of fragrances is amazing. These bloggers are passionate about their perfumes; they’re almost like perfume connoisseurs. Consumers are also sensitive to what goes into their perfumes and are capable of distinguishing between different fragrances. It’s no longer a simple 'I like it' or 'I don’t like it'. And it’s refreshing for those of us working in the industry, because now we’re working with an evolved consumer. In a country where smells are all around, the Indian consumer likes her fragrances to have a distinct, recognisable note. She also wants to make a statement with their fragrance. And since the weather in most parts is hot, the fragrance molecules have to be able to withstand high temperatures and stay for long. Consumers in West Asia prefer their fragrances even stronger. A popular note there is oud wood. The wood is found in India too, but the smell is not preferred. This goes to show how fragrances are also a cultural choice. When it comes to the production end of the perfume market, India plays a major role in providing essential ingredients. We find the world’s finest jasmine, ylang ylang, mint, ginger, cardamom in India. Along with Brazil, India is one of the most important sources of fragrance ingredients. In Asia, the other countries that are big in terms of ingredients are China and Indonesia. The perfume industry is dominated by women’s fragrances, and that will continue for the foreseeable future. However, we’re also going to see an uptick in men’s fragrances in a big way in the next 10 years. There is already a discernible change when it comes to the male consumer. He is not easy to please and really knows what he wants. Fragrance creators will have to match step. (This story was published in BW | Businessworld Issue Dated 07-10-2013)
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Goa's shipping industry, which is struggling to survive after the last year's ban on mining and export of iron ore, is pinning hopes on alternative cargoes to salvage their sinking business. The shipping industry in the State was catering to 90-odd mining leases before the temporary ban came into force. The central government has been encouraging the shift of cargo from roads to sea transport to reduce carbon footprint and also pressure on highways infrastructure. This has given a new lease of life to Goa's barge (ship) industry. "Nationally, there is shift of cargo from road-rail to shipping. You can also get carbon credit for such shift," Atul Jadhav, President, Goa Barge Owners Association, told PTI. The barge industry is looking for incentives to assist the logistics and transport industry achieve sustained and long-term shift from road freight to short sea and inland waterway transportation. Jadhav said the Kerala government has already started giving per tonne per kilometre subsidy to shippers for the cargo shift from road to waterways. He said the Centre can offer similar subsidy for the barges in Goa, which are left without cargo since September last year, when mining leases were suspended and iron ore exports from the state came to a halt. The fate of 400-odd barges, which generally operate in Goa's rivers, is hanging in balance, waiting for the Supreme Court to allow iron ore export. Jadhav said the barges from Goa can venture into deep sea and collect mining cargo from bigger vessels once the Ministry of Shipping declares waters up to four nautical miles off Goa shore as "partially smooth waters". The vessels can operate in the deep sea only when an area is declared as "partially smooth water", he said. Atul Pai Kane, Chairman, Confederation of Indian Industries (CII) Goa Chapter, said once these issues are settled, cargoes like cement, steel and coal can be transported with the state through barges instead of roads. "Two companies have already sought permission from the government to construct jetties in inland waters," he said. (PTI)
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Fitch Ratings cut India's growth forecast for the current financial year to 4.8 per cent, saying weak demand is a large drag on the economy.The new estimate compares with projections of 5.7 per cent made in June and 7 per cent in September 2012, underlining the "severity of the growth shock," the rating agency said in its 'Global Economic Outlook' report released on Thursday.Fitch said prospects of a swift economic turnaround have been further dented by a 20 per cent fall in the domestic currency since the end of May due to increased concerns over the country's large current account deficit.The sharp cut in the growth forecast comes when the country faces challenges such as slowing growth, exchange-rate woes and concerns about the current account deficit. India's economy expanded at a 4.4 per cent pace in the April-June quarter compared with 4.8 per cent in January-March."Demand is weak, both externally and domestically, which is a large drag on the economy," the agency saidFitch also cut India's growth rate projection for FY'15 to 5.8 per cent from the June forecast of 6.5 per cent. In September 2012, the company had projected a growth of 7.5 per cent for FY'15.Last week, the Prime Minister's Economic Advisory Council had revised its growth forecast for the current financial year to 5.3 per cent from 6.4 per cent projected earlier."The weaker exchange rate has not only weakened consumer and business confidence but has also complicated matters for India's policymakers," Fitch said. "Pressure on the exchange rate has hindered India's ability to provide either fiscal or monetary stimulus to support growth."The rating agency said the weaker exchange rate, coupled with high international crude oil prices, would raise the cost of the government's fuel subsidy programme."This is likely to force the government to cut other budget expenditure if it is to meet its FY'14 fiscal deficit target of 4.8 per cent of GDP."Rising imported inflation pressures coupled with continued pressure on the exchange rate will limit the Reserve Bank of India's ability to cut policy rates further," the report said.The rating agency expects wholesale price and retail inflation, which jumped 5.8 per cent and 9.6 per cent respectively in July, to "accelerate in the coming months."However, Fitch said continued improvement in agricultural output could provide an important boost to the economy since about 70 per cent of the population lives in rural areas.On the back of a strong monsoon, agricultural output in the second quarter of 2013 rose 2.8 per cent from a year earlier."Improving global growth prospects should support India's manufacturing sector," it added.Regarding emerging markets, Fitch said the risk premium component would be the most relevant, presenting a monetary policy dilemma for those with liberalised capital markets, including Brazil and Russia, while the impact would be more subdued in China and India.(PTI)
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Gold was hovering near one-week highs on Friday and was on track for its biggest weekly climb in five weeks after the US Federal Reserve postponed the tapering of its bullion-friendly stimulus measures. But gains were likely to be capped during Asian hours as key buyer China was closed for the mid-autumn festival. "The market will take some time to digest the 'no-taper' surprise," said Victor Thianpiriya, an analyst at ANZ in Singapore, adding that economic data would take on more significance going forward. "We expect the U.S. dollar to trade on the weak side, and this should support gold in the near-term at an expected higher range of $1,350-$1,400." Fed Chairman Ben Bernanke on Wednesday refused to commit to begin reducing the central bank's bond purchases this year, and instead went out of his way to stress the programme was "not on a preset course". Many had expected a $10 billion cut to the $85 billion monthly bond purchases following strong economic data. Bullion, which has dropped nearly 20 percent this year in anticipation of a wind down of U.S. stimulus, has gained from short covering and technical buying since the Fed's statement on Wednesday. Spot gold had eased 0.02 percent to $1,364.11 an ounce by 0211 GMT, not far from a one-week high of $1,374.54 hit on Thursday. It has gained nearly 4 percent this week. The Fed is scheduled to hold its next policy meeting on October 29 and 30. A new Fed chairman is also expected to be announced by then. "The prospect of any tapering this October remains data-dependent, and speculative interest may remain soft as investors continue to play a wait-and-see game for incoming U.S.-centric economic data," OCBC Bank said in a note. If the Fed announced tapering in the October meeting, prices could fall to $1,250 by year-end, the analysts said. "However, should the Fed refrain from any moderation in its bond purchase programme for the rest of the year, gold is likely to rally pass $1,400 in 2013 before setting a downward course once again in 2014." Physical buying in key consumers India and China has been subdued and looks unlikely to offer much support to prices. While China is away on a holiday, India has called a meeting of top officials from the finance and trade ministries in New Delhi on Friday to break a two-month impasse on gold imports that has crimped supply and pushed up prices in the world's biggest consumer of the metal. (Reuters)
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Reserve Bank of India Governor Raghuram Rajan said on Friday that he was confident that the current account deficit could be financed this year without suffering a substantial drawdown in foreign exchange reserves. India needs to withdraw liquidity measures, introduced in July to stabilise the rupee, as soon as market conditions allow, Rajan told a press conference after conducting his first policy review since becoming governor. Rajan surprised markets by raising interest rates to ward off rising inflation while scaling back some emergency measures put in place to support the ailing rupee. India's foreign exchange reserves fell to $274.806 billion as of 6 September, compared with $275.49 billion in the earlier week. The country's record-high current account deficit has made it especially vulnerable to the flight of funds. More Freedom To Market Participants As Rupee StabilisesThe RBI also said it would allow more freedom to market participants engaged in foreign exchange trading as the rupee stabilises.Reuters had earlier reported that the Reserve Bank of India (RBI) had relaxed intraday foreign exchange trading position restrictions that it imposed on some banks back in June. Rajan, speaking to reporters after the RBI's mid-quarter policy review, said he does not anticipate a new set of rupee stabilising measures since the US Fed had decided to postpone tapering its bond buying programme. Rajan said capital flows into the country cannot be directly linked to the prevailing repo rate. (Reuters)
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I learned about high-end wristwatches before I was able to afford one. The experience was both frustrating and exciting. On the one hand, I was able to begin to list timepieces I would aspire to own in an ideal future. On the other, I was motivated to learn about how to put monetary value on timepieces and where to put my own money. The luxury world is populated by many beautiful items, but it requires expert knowledge to know what is worth your investment. What Makes For A Luxury Watch?Despite what many retailers would have you believe, a high price does not make a watch luxurious. Meaning, anyone can put precious stones on an item and mark up its price. Today, timepieces aren’t the necessary gadgets they once were when people didn’t have other options to tell the time. While it would be silly to suggest people don’t use their watches for their intended purposes, the majority of timepieces out there are worn for emotional rather than purely practical reasons. There is nothing wrong with that. In fact, you will derive the greatest level of ownership satisfaction from wearing a timepiece that you feel a connection with, or something you’ve lusted over for years — a restored watch handed down to you by a relative. A luxury watch should be distinct in terms of how it is produced and what it is made from. Most watches we have today are mass produced in a short time. Good watches take time, and often require hours, even months, to produce. A. Lange & Sohne watches can take up to 14 months to create. High-end timepieces are designed to spare little expense in their production. Movements and cases may contain exotic materials, and the best watch cases are individually milled in precision machines and polished by hand, such as those from brands like Patek Philippe and Piaget. A good watch case is made from solid metal (or another material) and can take up to a full day or more to cut and finish. Luxury watch movements are completely mechanical. Tradition plays a large part in the luxury buying experience, and electronic quartz watches have no seat at the high table. Mechanical watches are little machines that apply historic mechanical watch design, often produced in today’s modern machines. Having said that, no luxury watch movement escapes the careful hands of a skilled watchmaker. Luxury watch movements are hand-assembled and tested and, in the best cases, are hand-decorated, such as those from Breguet or Bovet. PERFECTION: Watches from Greubel Forsey are famous for their exquisite finishDetail is really the true hallmark of luxury. Everything in a luxury watch should look and work perfectly. Materials should be attractive to the eye and to the touch, and everything produced in the miniature dimensions of a watch’s interior (such as the dial) need to be the epitome of precision. Among the best finished watches in the world are those from Greubel Forsey. What Is Good Design?The most popular luxury watches have ‘timeless’ design. They have endured the test of generations and still look good today — examples being the Rolex Submariner, Omega Speedmaster, Cartier Tank and Jaeger-LeCoultre Reverso. It is impossible to design ‘new’ timeless watches because they simply haven’t passed the test of whether they will look good 20 years from now. Timeless designs often appear simple at first sight, largely because they are subtle in appearance. Flamboyant watches with high prices often go out of style quickly, so simple designs that flatter your appearance tend to be best. No watch can be considered to have good design if it is not legible. Many watchmakers today forget that timepieces are instruments for telling the time. Status items apart, watches are tools, and a tool must work, which is why so many classic sport collections are popular sellers today. Legible watches have hands that are of the right size, and high-contrast dials that allow you to see the hands and hour markers in different light conditions. This is why diving and aviator-style watches are popular. It may seem trivial to bring this up, but it is surprising how many watchmakers get this wrong. No matter how beautiful or luxurious a watch may be, legibility should always be a prime consideration when it comes to purchase. Do It YourselfThe most esteemed watchmakers today are those who produce as much of their own parts as possible, such as Rolex, Jaeger-LeCoultre and Zenith. This is important because the more components that are made in-house, the more the quality and design of the watches can be controlled. It is true that many watchmakers will charge a premium for movements they produce themselves. Having said that, it is often best to rely on the skills of those watchmakers who have been producing their own movements for at least a few decades. It is appropriate to ask how much of a watch has been produced by the company whose name appears on the dial. The greater the proportion, the better the value of the watch. Even if the watch costs more out the outset, watches from ‘true’ manufacturers often fare better on the resale market. While brands like Omega and Breitling are quickly becoming esteemed movement makers, even those that do not produce their own movements, but make just the dials and cases, deserve respect. It is also often the case that the older a brand is, the more valuable it can be. Look for brands that have operated continuously for at least a few decades (or longer). Most Valuable WatchesWhen you reach the absolute pinnacle of the luxury watch ladder you find a few common elements. One of the most important things is technique. The world’s most complicated watches have features that no one else can replicate. Those can be complications in the movements or particular aesthetic techniques such as hand-engraved art that only that brand can produce. When you pay for the highest level of luxury, you are also paying for exclusivity. Brands like Christophe Claret offer dazzling technical marvels, while few can reproduce the handiwork of independent watchmakers Urwerk or Thomas Prescher. Many of the world’s best watches do not just have movements made in-house, but ones that are carefully made by hand such as those in a Philippe Dufour. This includes not just assembly of the movements, but also meticulous decoration of almost every part that goes into the movement — regardless of whether the wearer will ever see them. Hand-decoration can extend to artwork on the movement, as well as engravings on a dial or case. Bespoke creations are also popular amongst the world’s most dedicated watch collectors. Top luxury watches are made to order, and often include unique designs, treatment, or other elements that make them unique to the owner. This often involves an intimate exchange between the watchmaker and client to ensure the piece is perfectly personalised. Every timepiece made by Grieb & Benzinger is unique, and companies such as Blancpain have an entire department dedicated to custom orders.Many top luxury watches contain precious stones and materials. These materials may be expensive but aren’t difficult to acquire. Look for talent and skill in design versus a generous helping of diamonds when looking for the world’s best watches. (This story was published in BW | Businessworld Issue Dated 07-10-2013)
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A day after the US Fed decided to maintain status quo on its stimulus programme, the Finance Ministry said it is business as usual for India and asserted that the government would continue with reforms. "We should not overly put emphasis on the decisions of the Fed in the manner in which the economy will unfold...It is business as usual for us, as far as we are concerned," Economic Affairs Secretary Arvind Mayaram told reporters here. The US Federal Reserve yesterday (18 SeptembeR) surprised the markets by saying it will continue with its monthly $85 billion bond buying programme and wait for more evidence of growth recovery. Expectations that the stimulus programme would be tapered had led to fears of capital outflows, causing the rupee to depreciate against the dollar and stocks to fall. "I think we will need to continue to deepen our own reform process so that we continue to strengthen the economy. We believe with the steps that the government has taken, the economy will continue to show signs of growth and that is what is going to strengthen the rupee and strengthen the markets," Mayaram said. The government has taken steps to revive investments and promote exports and manufacturing as it battles slowing economic growth and seeks to contain the fiscal and current account deficits. To attract dollars and stem the rupee's decline, the RBI opened a currency swap window for oil refiners and a special concessional window to swap foreign currency non-resident (FCNR) deposits. Stocks and the rupee shot up after the US Fed decision. The S&P BSE Sensex rose as much as 605 points, or 3.03 per cent, to 20,567.61, while the rupee jumped 158 paise to a one-month high of 61.80 against the dollar. (PTI)
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The rupee and bonds surged to more than one-month highs on Thursday morning (19 Sep) as the US Fed refrained from withdrawing monetary stimulus as had been widely expected by global markets. Emerging Asian currencies rallied with most Southeast Asian units up around 2 per cent after the US Federal Reserve surprised investors by postponing the start of reductions to its stimulus programme. The partially convertible rupee was at 61.88/89 per dollar by 0908 India time (0338 GMT) compared to its close of 63.38/39 on Wednesday, 18 September. The unit rose as high as 61.65, its strongest since August 16. The benchmark 10-year bond yield trading at 8.18 per cent, after dropping to 8.14 per cent, its lowest since 8 August. India's 1-year OIS rate trading down 32 bps at 8.80 per cent while the benchmark 5-year OIS down 28 bps at 8.02 per cent, dealers said. (Reuters)
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India, the world's biggest buyer of bullion, will stop futures trading in precious, base metals and energy futures on Saturdays with immediate effect, in line with global practices, a move that could hurt already sagging volumes at the Multi Commodity Exchange.However, trading in futures of agricultural commodities will continue on Saturdays for now and will be reviewed after three months, the Forward Markets Commission, which regulates commodity futures exchanges, said in a statement.The move could further dent volumes, which are already down due to the imposition of the commodity transaction tax from July, and higher margins."Already volumes had been falling from July on MCX. With today's announcement we might see a further fall. Retail traders may opt to close their positions on Friday itself," said Sumit Mukherjee, an analyst with Karvy Comtrade in Hyderabad.MCX recorded an average volume of Rs 2015 crore on Saturdays from July to September, about 7 per cent of the daily weekday volume of 269.72 billion rupees, data from the exchange showed.(Reuters)
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Collecting wines is a painstaking process that involves visits to vineyards and auctions to get the right mix of varietals and maturities for many, Collecting wine is akin to building ass-ets. It is often compared to collecting works of art, luxury watches, designer novelties, vintage cars and antiques. A wine connoisseur collects prized and highly rated vintages as a reflection of his individual style and taste. A key part of building a personal and meaningful collection is to identify what your allotted budget is, including the storing capability of wines. Identifying the type of wine that you like is essential — whether it is Bordeaulaise or Burgundian, Italian or Spanish, Old World or New World, Boutique or Classic. You should decide an order of preferences and then let that determine your storage volumes. A well-balanced collection is one that has 60 per cent Old World wines, meant to be aged, and 40 per cent New World wines that are younger, robust and ready to drink. Buying wines while travelling abroad or while visiting a vineyard are the best ways to build a collection. Buying wines at vineyards is an excellent idea as the interaction with the wine maker or chateau owner is priceless. Auction houses are a great place to find rare wines that normally have limited access to the public.The most alluring aspect of auction houses for collectors is that not only do they sell obscure vintages, they also guarantee the authenticity of the seller. Another advantage is that a variety of bottle sizes is available. For example, a 6-litre bottle of Methuselah, a 9-litre bottle of Salmanazar, and a 12-litre bottle of Balthazar of rare vintage are more likely to be available at auction houses than a wine importer or sales agent. Three of my favourite auction houses for fine and rare wines are Sotheby’s, Christie’s and Hospices de Beaune. Modern auction houses like Zachys also offer the buyer the ability to bid online. Bidding in an auction is a very easy undertaking. One finds out about an upcoming auction on the house’s website. Often, the house itself may send emails. Sales are also conducted by contacting wine specialists or sales associates whose numbers are provided on the websites. The bidding can happen by representation or over the phone and, in the case of Christie’s, live online as well. Auction houses also allow private bids, which is a plus for the more discreet collector. CLASSIC BREW: At auction houses, one can find the rarest of wines that come with a certificate of authenticityHere are some classic wines that are bound to be on the lists of top collectors worldwide:• Chateau Margaux 1989• Petrus, Pomerol 2000• Chateau Latour 2001• Krug Clos d’Ambonnay 1995• La Tache 2002• Gaja Sori San Lorenzo 1999• Opus One, Napa 1985• Domaine de la Janasse, Chateauneuf du Pape 1998• Vega Sicilia, Ribera del duero Unico Gran Reserva 1976• Weingut Joh. Jos. Prum, Germany 1971Collectors' KarmaWhile building a wine collection one should make sure that there is a good mix of ready-to-drink wines and wines kept aside for ageing. This gives you the opportunity to enjoy the pleasure of tasting versatile wines while not opening a wine before it has matured. Storage and cellar maintenance are imperative, especially for wines kept at home. A temperature-controlled humid cellar or room is a must. The storage room should preferably be dark with low lighting so as not to disturb the wine. Storing at the right temperature is absolutely crucial to the longevity of the wine. Very often, wines served in India are over-exposed to heat and, unfortunately, tend to lose their lustre and pristine quality. Keeping the wine as still as possible and on its belly is imperative; friction to the bottle can damage the wine and make it unfit to drink. Also, for older wines, stillness is important for separating the sediment that tends to collect as the wine ages. There are many facets to owning a wine collection, including stocking wines that one would like to drink often. Cherishing the memory of a date or an anniversary is a lovely occasion to uncork a bottle of wine. To some, collecting subdues the curiosity of certain wine varietals or styles. To others, owning and collecting bottles is a matter of prestige — the rarer the wines in one’s collection, the greater the honour.Often, in my job as a wine consultant, I come across people who barely consume their prized vintages. These collectors also create impeccable leather-bound encyclopedia-like catalogues that are handed out to their friends as a glorious tribute to their research and passion for the wines collected. Last but not the least, some collect for the sybaritic passion of drinking and being able to taste fine and rare wines. Whatever the reason for collecting, a good wine is the essence of a good life. (This story was published in BW | Businessworld Issue Dated 07-10-2013)
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