Fragrances in Azerbaijan

PROSPECTS

Premiumisation prevails in 2017, despite economic downturn

Fragrances posted growth in current value terms in 2017, driven by a significant average unit price increase. Despite reduced disposable incomes, premiumisation continued in fragrances, with the segment increasing its share.

Developing modern grocery retail supports growth in mass fragrances

Small perfumers remained negligible as distributors in Azerbaijan in 2017. The low penetration of small perfumers is linked to the preference for well-known brands among local consumers, who continue to follow global fashion trends.

Fragrances to see a marginal increase, with rising consumer awareness and developing beauty trends

During the forecast period, fragrances are expected to grow in Azerbaijan, fuelled by an improved economic situation, rising consumer awareness about new scents and developing beauty trends.

COMPETITIVE LANDSCAPE

Hunca Kozmetik Sanayii AS leads fragrances in 2017

Though premium fragrances are growing more rapidly in Azerbaijan, mass fragrances, led by Hunca Kozmetik Sanayii AS, continues to lead sales, given the wider consumer group targeted by mass products. The leading position of Hunca Kozmetik Sanayii AS is attributable to the wide availability of its products in the local market, interesting packaging and competitive prices.

International brands lead

Fragrances in Azerbaijan continues to be led by international brands, with a minor presence of local brands, with economy and standard claims. Local consumers continue to prefer international well-recognised brands, since there is low trust in local producers and fragrances, and the prices of local and international brands do not differ significantly.

Despite the rise of premiumisation, mass brands continue to lead sales

Mass fragrances continued to account for the largest share of sales in 2017, since they target a broader group of price-sensitive consumers, demanding products at more affordable prices, particularly following the reduction in disposable incomes after local currency devaluations during the review period.

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