Fragrances in Azerbaijan

PROSPECTS

Growth of fragrances in 2018

In 2018, fragrances grew thanks to increased consumption and a steadily growing unit price due to macroeconomic improvement. Whilst consumer groups of all ages and incomes use fragrances in Azerbaijan, most interest come from mid- and high-income consumers.

Consumers’ price-sensitivity supports the rise of unbottled offerings

Considered a non-essential item, fragrances faced a momentous trade down in 2015 and 2016 during a time of currency devaluation Even though the current macroeconomic situation is relatively stable, local consumers remain price conscious. Price-sensitivity supported a shift during 2017 and 2018 to unbottled fragrances, which are offered through numerous existing and new retail channels, such as Iyde and D&P Parfum.

Beauty specialist retailers remain the leading channel

During 2018, fragrances were available in Azerbaijan in outdoor markets, parapharmacies, beauty specialist retailers, traditional grocery retailers and modern grocery retailers, such as supermarkets, hypermarkets and convenience stores. As beauty specialist retailers provide customers with advice from sales consultants and a wide product assortment, they remained the leading channel in 2018.

COMPETITIVE LANDSCAPE

Hunca Kozmetik Sanayii AS leads fragrances

Mass perfumes continued to account for the largest share of fragrances in Azerbaijan due to the wider consumer base targeted by mass products. Hunca Kozmetik Sanayii AS benefited from this due to its economy offerings with eye-catching designs and wide distribution through grocery retail channels, in particular modern grocery retailers.

Internationals lead fragrances in 2018

Local manufacture remained negligible in Azerbaijan, and consumers continued to prefer global brands. Even though some local products exist, such as mass fragrances by the fashion designer Faxriya Xalafova and Gazelli Group, consumers still preferred international ones due to their longstanding presence in the country and concern about local products’ quality.

Modern retailing development supports the increase of mass fragrances

The development of modern retailing and incipient retailing formats, such as mass beauty retailers, had an important impact on the advancement of mass fragrances in Azerbaijan. The highest growth was seen by celebrity brands, such as James Bond and Christina Aguilera.

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