Fragrances in Chile

PROSPECTS

Competition between premium and mass fragrances grows

Premium fragrances have developed a format strategy to adapt to its consumer base, by giving women fragrances in small and sophisticated formats while men’s premium fragrances are sold in larger formats, reflecting the different needs and preferences depending on the consumer segment. Mass fragrances continue to stick to the traditional 200ml format and experienced a flat year in 2018.

Amazon and indie brands threaten premium fragrance players

Amazon and indie brands offer a wider choice and more affordable prices for consumers without losing the sophistication and fashion of premium products.

Fragrances no longer appealing as a gift occasion

There are two main disruptors when it comes to buying fragrances as a gift occasion. The first one is that the consumer trend of “experience more” has led them to give life experiences rather than products as a gift on many occasions.

COMPETITIVE LANDSCAPE

A confusing and challenging landscape

Most fragrance brands are changing their official distributor, and sometimes switching from one to another year after year, making market positioning very difficult and confusing both players and consumers.

Growth led largely by online sales

Online activities such as Black Friday and Cyber Monday and other mass advertising campaigns to promote this channel have pushed fragrances growth to almost double figures in this channel, while store retail sales have grown modestly.

International players account for most value sales in premium fragrances

L'Oréal maintained its strong lead in premium fragrances, followed closely by Puig, 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.

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