Incense startups sniff better opportunity abroad as local market, dominated by legacy players, limits prospects
Subscribe to enjoy similar stories. A new wave of Indian incense-making startups is looking beyond the domestic market for growth, lured by the scent of more lucrative prospects overseas. As they struggle to compete against legacy companies in the domestic market, startups in this space are experimenting with new blends and fragrances and tapping e-commerce platforms and international retail chains to make their products available globally.
Startups including Phool, Hoovu, Kalyanamm, Nirmalaya and Nytarra have created clean and sustainable religious and lifestyle aromatherapy products such as incense sticks, particularly targeting the urban consumer. Many of these startups use recycled floral waste generated by temples or other natural ingredients to make their products, which are more expensive than traditional incense products, positioning them as premium brands. However, growth in the domestic market is slow and lack of awareness in a price-sensitive market make it a challenge to sustain their businesses in the country.
The startups told Mint that anything beyond ₹50 is a hard sell in India. Kalyanamm, a two-year-old incense focussed startup, plans to start selling its products in the US and Canada on online marketplaces eBay and Amazon. “Every week, we are getting international orders on our website, which prompted the decision to expand internationally.
People are ready to spend on the extra shipping cost, but they want something clean and organic," said Nidhi Sabbarwal, founder of Kalyanamm. Sabbarwal explained that a pack of about 30 regular non-organic incense sticks made of charcoal costs ₹50-70, whereas Kalyanamm’s incense sticks would cost about ₹300. “In India, about 70% of the customers are price sensitive
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