Are fragrance sales in Asia driven by the juice or the brand name? Emma Reinhold looks at the influences that are helping to move this dynamic market forward
While sales of fragrance have foundered in the western world in recent years, Asia remains a market full of opportunity. Combining a diverse and increasingly affluent demographic with a certain level of immunity from the economic downturn affecting other parts of the world has prompted fragrance brands to invest in Asia to expand their businesses.
According to Euromonitor International, the fragrance market in Asia Pacific grew 5% in 2010, reaching US$2.7bn and the outlook shows a similar level of confidence for the next few years. Despite its economic woes Japan remained the largest consumer market ($585.9m, -2.6%) but the devastating tsunami that hit the country in March this year will undoubtedly have caused additional problems spanning raw material supply, logistics and retail.
China’s burgeoning consumerism looks set to help the country take the number one spot very soon however; it posted a 7.8% sales increase to reach $553.3m in 2010. Strong growth was also recorded in Vietnam (+21.2%, $21.5m), India (+20.2%, $139.8m) and Indonesia (+15.6%, $146.1m).
“The recession did not hit Asia the way it did the west,” explain Lily Chen, regional CI manager, FF & BC Asia, Sujata Bhowmik, regional marketing manager, FF & BC Asia and Bibiana Lim, senior fragrance development manager, beauty care Asia, IFF. “Consumers who were buyers have continued to purchase fragrance.”
“Consumers are still buying both in the premium and mass sectors,” adds Jessica Chor, marketing information manager, CPL Aromas (Far East).
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