Fragrances in Argentina

PROSPECTS

2018 sees growth then decline

2018 started very well for fragrances, with significant growth in retail volume terms. However, in the middle of the year, there was a strong devaluation of the currency, with a significant impact on prices in the following months, particularly in premium fragrances, as they are all imported.

Small containers win market

Argentinian consumers tend to prefer fragrances in packages of 90ml or 100ml. This is not only because the price per unit volume is more attractive, but also because they use perfumes with a very high frequency.

Prices similar to duty-free initially soften the drop in sales

The prices of premium fragrances did not adjust immediately after the strong devaluation of the currency, in the middle of 2018. Therefore, in terms of dollars, prices of premium fragrances in beauty specialist retailers were very similar to those in duty-free outlets.

COMPETITIVE LANDSCAPE

Pop-up stores for a limited time to boost sales

One of the most notable strategies during 2018 was that of Coty Argentina SA. In the latter part of the year, the company opened a pop-up store in the Galerías Pacifico, a shopping mall located in the City of Buenos Aires, where tourists are the main customers.

Mass fragrances dominated by direct sales companies

Multinational companies have a near monopoly on sales of premium fragrances in Argentina. In mass fragrances, it is direct sales companies which stand out.

Companies develop different sales channels

The direct sales companies have evolved and transformed themselves into multi-channel companies to meet the demands of their customers. Although sales representatives continue to be the main sources of sales, during the review period direct sellers added new channels.

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