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.
>> Click here to read the full Fragrance Market report <<
