Fragrances in Azerbaijan

PRE-COVID-19 PERFORMANCE

Consumers see premium fragrances primarily relevant for gift ideas

In 2019, fragrances kept growing as consumers bought them more often, as they preferred to have more options at home. Although the average unit price increased, the majority of consumers still purchased mass fragrances regularly.

Beauty specialist retailers remains the leading channel

During 2019, 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 2019.

International companies lead fragrances in 2019

Local manufacturers 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 long-standing presence in the country and concern about local products’ quality.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 13% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 3% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

All product areas across fragrances are likely to experience severe double-digit sales decline at constant 2019 prices in 2020 over the previous year, as a result of the COVID-19 pandemic. Both premium and mass fragrance sets/kits are expected to be the hit badly, given the cessation of major events and low consumer confidence and cautious spending.

Recovery and opportunities

After the sales collapse seen in 2020 due to the impact of the COVID-19 pandemic, some recovery is expected in 2021. However, consumer spending is likely to remain tentative.

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