Fragrances in Argentina

PROSPECTS

More variety and promotions boost sales

In 2017 sales of fragrances in Argentina managed to grow in retail volume terms after the fall registered the previous year. This recovery is mainly explained by the large number of promotions and launches since the end of 2016.

Multichannel is a strategy to adapt to consumers

Direct selling companies are constantly innovating to adapt to consumer demand and new trends. Although using resellers is the main way to generate sales, during 2017 there were important innovations as new channels were incorporated to suit consumers.

A greater variety of aromas combats seasonality

In Argentina, sales of fragrances are highly concentrated in the last four months of the year. According to industry sources, the September-December period accounts for more than 40% of retail value sales.

COMPETITIVE LANDSCAPE

Direct selling companies dominate mass fragrances

Direct selling companies dominate the mass fragrances category in Argentina. In 2017, Natura Argentina SA led sales, while Cosméticos Avon SACI ranked second, but there were other companies whose participation was significant such as Arca Distribuciones SA, with its Tsu brand, Matiz SA with Gigot or Naturel SA with Amodil.

Private label has significant potential

Despite the fact that private label sales are still very low, they expanded strongly over the review period, boosted by drugstore/parapharmacy chains such as Farmacity or department stores such as Falabella. According to industry sources, private label has high potential for development, particularly in clothing chains, for both adults and children.

Different strategies are deployed to attract consumers

Premium fragrance brands and mass fragrance brands have different strategies for attracting consumers. On the one hand, in premium fragrances companies constantly make strong investments in mass media advertising and hire famous people, notably film stars or recognised models.

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