Fragrances in Croatia

PROSPECTS

Two different types of consumers seek fragrances

There are two major customer profiles for fragrances in Croatia. The division is most clearly shown in the different types of retail outlets that sell fragrances.

Mass and premium in balance

The two price segments, mass and premium, are quite distinctive: premium fragrances sees much lower sales in volume terms, but as its average unit price is about four times higher than mass fragrances, it outperforms mass fragrances in terms of value sales. The relationship in the sizes of the two segments did not change much over recent years, and is not expected to change much over the forecast period.

High mark-ups do not hamper demand

In professional circles, Croatia is known to be one of the countries with the highest retail mark-ups in Europe. One would expect demand to drain off to other countries in search for cheaper alternatives, but not everyone travels often enough to be able to regularly buy abroad or in duty-free shops at the airport.

COMPETITIVE LANDSCAPE

High fragmentation due to the overwhelming number of products

Fragrances has the most colourful competitive landscape within beauty and personal care. The reason for this is the impressive number of companies and brands which compete.

Two global giants lead

Only two players could pride themselves on holding double-digit value shares in 2018. The historical leader L'Oréal Adria owns a traditional but impressive portfolio of premium fragrances, led by Giorgio Armani, followed by Lancôme, YSL and L’Oréal Paris.

Local players hide in niches

There are no Croatian fragrances brands which hold a 1% value share or higher. Still, the deep pool of “other” small players still account for more than a third of value sales, and there are some local players within this group.

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