Fragrances in Chile

PRE-COVID-19 PERFORMANCE

Economic uncertainty, discounting and illicit sales challenge players in 2019

Premium fragrances continued to gain share in current value terms in 2019, while mass men's and unisex fragrances and sets/kits saw current value decline or stagnation. Currency fluctuations increased throughout the year, leading to rising economic uncertainty.

E-commerce also offers legitimate sales growth opportunities in 2019

While the internet is saw growth in illicit sales of fragrances at the end of the review period, it is also offering opportunities for retail sales growth via e-commerce. Widening internet access and consumers’ increasing comfort with shopping online supported an e-commerce sales boom for fragrances towards the end of the review period, as consumers became increasingly familiar with e-commerce websites and marketplaces.

Puig leads in 2019 but faces challenge from L'Oréal in premium fragrances and direct selling players in mass fragrances

Distribuidora Puig continued to lead overall fragrances in 2019, with a strong presence across all product categories and a wide range of mass brands. Through strong distribution presence and great brand awareness, Puig benefits with sustained growth for Diavolo de Antonio Banderas and its wide range of other brands.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to grow marginally in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 2% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

While consumers will continue to enjoy and use fragrances in 2020, economic uncertainty will have an impact in the forecast period. Many consumers may reduce the number of purchases they make, instead shifting towards repeat purchases of their favourite brands and seeking out the lowest available prices when making these, particularly within premium fragrances.

Recovery and opportunities

Fragrances is not expected to see any long-term impact as a result of the COVID-19 pandemic, with value growth at constant 2019 prices swiftly returning to 2019 levels by 2021 and continuing to slowly climb for the remainder of the forecast period. Illicit sales are however also likely to build in number, both online and via street vendors and markets as the lockdown is eased.

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