Fragrances in Chile

PROSPECTS

Significantly lower value growth due to intense promotion both online and in-store

With the deceleration of the Chilean economy, the current value performance of fragrances in 2017 did not match that seen in 2016. In such a context, players resorted to aggressive discounts both in-store and online.

Mass brands dominate fragrances

Mass brands dominated fragrances in 2017. Consumers tend to prefer mass fragrances as they see little need to invest in premium fragrances.

Beauty specialist retailers grows whilst direct selling decreases

Even though direct selling continued to lead the distribution of fragrances in 2017, it is losing ground to other distribution channels, such as beauty specialist retailers. This distribution channel saw double-digit growth in value sales of fragrances in 2017.

COMPETITIVE LANDSCAPE

International players account for most value sales in premium fragrances

In 2017, L'Oréal Groupe maintained its strong lead in premium fragrances, followed closely by Distribuidora Puig Chile, also with a high share. Consequently, international brands continued to dominate premium fragrances in Chile, and were considered luxury products by most consumers, leaving little share for domestic players within the premium segment.

Promotions on sets/kits are key in the performance of mass brands

Mass brands continue to be promoted by means of promotions on sets/kits, which are available during special periods such as Christmas, and are dominated by offerings from direct sellers.

Direct selling companies hold strong position in mass fragrances

Direct selling companies hold a strong position in mass fragrances in Chile. In 2017, Oriflame de Chile, Cosméticos Avon, Natura Cosméticos and Cosméticos Ebel as a group managed to maintain the leading position.

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