Enterprise

Fragrance of success defines family firm that invested in perfumes

fm group

Mr and Mrs Munene (centre) during a recent meeting of FM Group franchise holders in Malta. They began the business after buying a product from a friend. Photo/Courtesy

When Ann and Lucas Munene resolved to return to Kenya in 2008, they were almost certain that they were going to start and run a health and safety consultancy firm. At the time, starting a perfume business did not feature in their plans.

However, four years later, the business they envisaged failed to pick up and now, they are running a personal care franchise — FM Kenya — under the FM Group, a leading perfume maker.

According to Ann, her interest in the perfume business was the result of a coincidence. She was first introduced to a range of products from FM by a friend who was then working as a distributor from the group. She bought the products for her own personal use.

“The quality of the product was what got me interested,” said Ann.

After several interactions with the agent, she learnt the products were in limited circulation locally and there was an opportunity she could explore. In 2010, Ann joined the FM Group distribution team as an agent with a Sh100,000 investment.

A year later, the couple took their business to another level. This time, they pursued the possibility of becoming an FM Kenya franchise, to fill the gap that previously existed in the supply chain.

“FM distributors in the country had to purchase their stock from the UK since it was the closest office at the time,” said Ann.

The decision to open the franchise was also in response to numerous requests from distributors in the region.

“Kenya was on the wish list of African countries for business within FM Group,” said Lucas. According to him, the global company was supportive when he made an application for a franchise.

The polish firm gave them the certification and roped them into the business and the couple became among the 60 business leaders of the company globally. With local approval from the Kenya Bureau of Standards (Kebs), the couple officially launched their operations in May this year.

The company has attracted a sizeable number of distributors in major towns and across East Africa due to its model of marketing its products.

“The network marketing model is helpful in cutting distribution costs and making sure customers get quality products for less. The distributor doesn’t stock and there is also very low capital investment to start,” Lucas said. This, they admit is the reason the franchise has made them attract more participation and interest in their range of products locally.

The FM Group has over 200 fragrance varieties, make-up, cleansing products, car and animal cosmetics.

The products go for an average price of Sh3,500 for eau de parfume. However, their justification is that they are not charging customers for endorsements and advertising costs.

“We offer affordable prices because we cut cost by distributing through network marketing. Traditionally glossy, fancy packaging, advertising and endorsements push distribution cost for perfumes up to 97 per cent in some cases. Thus the customer ends up paying only three per cent of the money spent for the actual product,” said Lucas.

As they see their business grow, the couple are grateful to the good investor climate. “Kenya makes it a suitable base for FM Group and is also a young and dynamic market. The middle class is adopting liberal lifestyles, including use of cosmetics,” said Lucas.

FM Kenya is the fourth FM franchise in Africa after Morocco, Cameroon and Nigeria.

[email protected]