Trends

Gel-well gelato

Gelato, the fat-free substitute for ice cream, is witnessing a fast-growing market in the country. By Sayoni Bhaduri

With a sub-tropical climate like India's, there has always been a natural leaning towards frozen desserts, a recent addition being the gelato. This was perhaps inevitable with the meagre premium ice cream brands present in the country. According to Yasser Ali, COO of Amore brand of gelatos that has made an appearance in Indian cities, there was a definite lack of premium brands of ice cream in India. "On my visits abroad I saw companies like Haagen Das and Ben & Jerry's that offered quality products which would be different from the air-blown ice creams available here," he complains.

This led to the entry of not just one or two but numerous gelato brands in the country - among them being Mamma Mia! Natasha Aggarwal, its CEO, says, "With rising consumerism and improving lifestyle, it was an opportune moment to launch a completely new product like gelato." Its added health benefits are a bonus. Arjun Sekri, CEO of Daily Bread and its gelato brand Deluca's, says, "People like the high indulgence product, and they can afford to eat it, not only monetarily but also health-wise since it is low in fat."

The novelty factor

Even though gelato has been around for a couple of years now, it still retains its uniqueness. Chilled at a steady -13 to -14 degrees, the gelato leaves a tingling sensation which is more of the flavour and less of the sub-zero temperature. The gelateries pride themselves with the maintenance of these technical aspects as well as the innovation in the product itself. The new flavours and innovations which they bring is a key element to product differentiation. Ali proudly says, "We do not repeat the flavours and this gives a sense of surprise to our guests."

Others however are not so adventurous, but they do have an R&D department where new flavours are invented everyday. For instance, Mamma Mia! brings out two new flavours every week. Charanpreet Narang, general manager of Amici, says, "We develop at least two new flavours every month." He adds that innovating new products is not difficult once the characteristics of the raw materials is understood well. The capability to innovate and a passion for creating a quality product seem to be the winning formulae for a successful business venture in gelato.

The main centre for gelato has remained Mumbai for a long time. Narang explains this phenomenon, "Gelato has created a niche market for itself in the Indian market, particularly Mumbai. This is basically due to the better standards of living and the lifestyle. Luxury is part of everyday life here." But it is no more limited to the city of Mumbai; the gelato trend is now slowly spreading to other cities like Bangalore, Pune, Hyderabad, Delhi, Kolkata and Chennai.

Branding and marketing

It's still too early to say if the popularity will skyrocket or eventually fizzle out. Ali, confident of his product, says that people are always looking for something new and as long as that is provided gelato will have demand. Adding a little different perspective to this, Aggarwal says, "Ice cream is a universal product and if another interesting substitute is created, it might take over the gelato trend. This means that constant innovation is important to stay ahead."

As far as competition is concerned, none of the present players seem to be much worried about it. There seems to be enough space for everyone in the market. According to Narang, if it is a quality product and is different from what is already there in the market, there is no need to be worried about competition. Ali's outlook on this is based on pure passion and he goes to say, "We are our toughest competition."

Yet there has to be a certain brand recall with the consumer to expect a return visit. Word-of-mouth is the most popular mode of marketing. Yet in-house strategies are often undertaken. Sekri describes, "We have a lot of in-house marketing plans like discounts and freebies. We also advertise once in a while." Moreover, locations that receive high foot-falls like multiplexes and malls are important. Aggarwal explains, "Gelato is an impulse purchase product, so it has to be located where people will notice you."

What will work best?

This leads to an interesting question regarding the kind of outlet that works best for gelatos, considering that it is still a high-end product. While present as a small kiosk or counter in an area with high foot-falls works well, the question is whether standalone outlets stand a chance? For assured profitability, it is seems like a good option that gelateries are teemed up with other products or activities.

Daily Bread-owned Deluca's follows this. While Mamma Mia! has not tied up with co-brands, it does provide alternatives to its customers by serving gelato-based snacks and similar eatables. At the same time there is Amore and Amici that mainly operate through standalone outlets and are yet not closed to the option of having kiosks and counters at multiplexes and malls. It will be safe to say that as long as an outlet is visible and centrally-located, there is no fear of flagging sales.

Most of these outlets do provide home delivery and takeaways, but it is yet an unanswered question whether institutionalising gelato will be a good and profitable business venture. Ali adamantly refuses and says, "It will destroy the essence of the product. Gelato is a preservative-free and fresh product and institutionalising a product like this will involve using preservatives and chemicals for a longer shelf-life." Narang on the other hand seems more hopeful and says, "There is potential for a lot, and maybe institutionalising will be possible if the demand for the product is strong enough."