Presentation of fragrance market

Some general informations about the market:

• Market growth rates have been averaging 2-3 percent over past decade
• Top four companies account for over fifty percent of global market share, whilst top ten account for seventy percent
• There is an increased demand from customers for “natural” ingredients as well as for performance and functionality of fragrances and fragrance ingredients, such as increased stability, controlled release systems, prolonged top notes, etc.
• Shortening end product life cycles
• Increasing oversight of quality standards and labeling
• More than 75% of men, and 90% of women buy perfumes

Fragrances distribution channels 

Selective stores: 

* Famous selective stores : These stores represent more than 65% of the global sales in this field. Since 2010, Sephora has been ranked first leading. On 100 euros spent in cosmetics (perfumes included), 26 euros are spent in Sephora stores.

* Department stores: Usually, brands owns luxurious corners in department stores (8% of global sales)

Online shops:  

Given the number of online shoppers, all the selective shops got their own website on which you can buy all the perfumes you want. This new retail offer is a real opportunity for retailers (Sephora website has 1,5 million of visitors per month).

Drugstores: 

They represent about 6% of perfumes sales. With a mid-priced positioning, they are between the selective shops and the large retailers. They differentiated themselves by selling more skins care cosmetics.

Large retailers:

Their offer is mainly composed by colognes and low quality perfumes and represents 15% of the global market.


Article posted by Marine