Fragrance Market Faces Declines

Consumers tire of tried-and-true formula.

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By: Tom Branna

Fragrance Market Faces Declines

The fine fragrance market's reliance on tried and tested formulas for sales and marketing is having a detrimental effect on the sector's success, according to a new report from Imogen Matthews Associates. The report found that despite a hectic launch schedule, greater focus on promotions and double-digit growth in online sales, the industry failed to ignite consumer appetites.

 
“Recording a year-on-year increase of just 1.5%, the fine fragrance market's performance could be described as lackluster at best,” said Imogen Matthews, publisher of The Premium Market Report. “But all is not doom and gloom. Far from it. Look beyond the disappointing numbers and you find an industry that is ripe with opportunity.”

 
The report goes on to highlight the areas where both mainstream and niche brands have the opportunity to breathe new life into the sector. Areas such as personalisation, a more mature approach to celebrity fragrance and the growth potential of both the millennial and men's markets are all potential growth drivers.

 
The fine fragrance report is the first of four themed reports that focuses on key product categories and the important issues facing the premium beauty industry today.
 

“We have charted the ups and downs, opportunities and risks facing premium beauty brands, distributors and retailers” said Matthews. “Our exclusive consumer research survey further supports and endorses our analysis and provides valuable insight into the minds of premium beauty shoppers.”
 

The consumer survey, run by One Poll, interviewed 1,000 UK women. Three highlights include:
• Smell is the most important reason for buying a fragrance. Yet, women are frustrated by the lack of opportunities to try them out.
• Once women have found a fragrance that suits them, they remain loyal to it.
• Millennials are the most experimental and engaged with fragrance and are keen to try new ones, yet many are disappointed to find so many that smell the same.


The report includes:
 
A breakdown of key trends from our analysis of market leading data sources, including NPD and Fragrances of the World;
• An investigation into the effects of discounting and, in particular, the impact of Black Friday;
• Opinion from leading industry figures on the niche brands to watch and why;
• The categories that are growing the fastest and what the future holds for celebrity scents;
• The latest trends in ingredients; and
• Top tips for future growth.
 

More info: Imogen Matthews Associates, Email: imogen@imogenmatthews.co.uk; Website: www.imogenmatthews.co.uk/finefragrancereport.
 

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