Fragrance Market Report 2017: Action Points

A plan of action following the Fragrance Market Report 2017, these points will help your business grow in the right direction


GLOBAL FRAGRANCE: ACTION POINTS

Visual appeal in terms of both primary packaging and marketing materials is even more important for teenage girls who enjoy spending time browsing for beauty products.
Michelle Strutton, Global Analyst, Mintel

Millennials are interested in the nuts-and-bolts of fragrance: the ingredients, how fragrances are made, and who by.
Jo Fairley, Co-Founder, The Perfume Society

Extending formats of fragrance brands aimed at younger females will also appeal to teenage girls, including travel sizes and hair perfumes as well as body sprays.
Michelle Strutton, Global Analyst, Mintel




EUROPE: ACTION POINTS

With screen time increasing, there is a yearning for hands-on experiences and human contact. Fragrance brands and retailers should focus on targeted events that connect them with stories, ingredients and even creators.

Gift sets need to be more exciting. An element of personalisation could help, as could packaging that can be upcycled in some way.

Consumers want to know about ingredients, how the fragrance was made and who by. Communicating these facts can make a perfume more authentic, original and artistic.

Brands should be working hard on their Instagram, deploying it as a powerful tool to put the magic back into a brand.
Jo Fairley, Co-Founder, The Perfume Society




AMERICAS: ACTION POINTS

Customisation is now moving mainstream. The fragrance oil format can be used for layering, or for consumers to create their own custom blends, while mix and match options offer an easy, ready to apply option.

The popularity of lower-priced retailers among younger generations threatens to slow market growth. Retailers need to introduce unique retail experiences that make shopping for fragrance more desirable. Apps and other digital technologies can help customers to make a more personal fragrance choice.

There are major opportunities for brands in Brazil, both in terms of body mists and sprays that respond to consumers’ requirements for freshness, and also premium brands, who can use refills to attract price-sensitive consumers to their products.

In Brazil, consumers over 45 are most interested in natural ingredients. This age group can be drawn into higher usage by developing and marketing natural-based fragrances.




MIDDLE EAST & AFRICA: ACTION POINTS

In the Middle East and Africa, temperatures can really soar, and consumers want to be sure that they smell good. Perfume formulations and marketing in this region always need to bear this in mind – their products must deliver: it’s not about smelling better; it’s often just about smelling good.

Brands and retailers need to keep a close eye on currency shifts, and hedge against them where they can. A strong currency movement at home, or in a key ingredient supply country, can impact prices, moving a masstige line into the premium price category. Sellers beware.

The rich in this region are not just often super-wealthy, they are prepared to splurge on high end scent. They are also far more insulated to economic shifts than their poorer compatriots – so perfume manufacturers wanting more dependable sales in the MEA region might consider moving up market.

International perfume brands may have prestige in Africa and the Middle East, but countries in the region have strong scent traditions. If brands can combine a global name for quality with sensitivity to sensory cultures, they may be onto a winner – watch carefully calibrated products fly off the shelves.




ASIA PACIFIC: ACTION POINTS

Asia has the world’s most populous markets and with personal scent product purchasing still an emerging trend, any perfume company wanting to secure profits in the 21st century will be trying to secure a sustainable footprint in the region. Get it right and the rewards could be huge.

Sensual cultural preferences in Asia are well defined, with strong culinary and decorative traditions underpinning consumers’ sense of what smells good and what message is sent by specific scents. Detailed and sensitive market research is likely to pay off for perfume companies striving for success in this region.

As an emerging market zone, there is plenty of dynamism in Asian scent sales, meaning consumer trends can and will shift. Perfume companies need to be nimble and alive to the fact that consumers are discovering what they like in scent – and they may change their minds.

Successful future players in Asia Pacific will include companies that combine the reliability and international reputation of the global brands with local cultural sensitivity. If a Chinese or Indian brand sells well at home and then breaks into export markets, international companies need to watch out. They could be facing a global competitor with a super solid domestic sales base.


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