Fragrances in Ecuador

PRE-COVID-19 PERFORMANCE

Demand remains seasonal as lower import taxes make fragrances more affordable

Demand for fragrances in Ecuador remains highly seasonal, with established purchasing patterns resulting in sales spiking during the weeks preceding various special gift-giving occasions such as Christmas, Mothers’ Day and Fathers’ Day. Another crucial point to take into consideration when evaluating the category is that there is a clear difference between mass and premium brands in terms of price.

New launches remain a constant presence in fragrances

2019 saw a continuation of the consistent new product development that has remained a hallmark of sales of fragrances for many years. Among the most important new launches during the year by category leaders such as L’Bel, Oriflame and Avon were products with a young and energetic image that target a mainly female consumer base aged between 20 and 30 years old.

High-end retail experiences an important aspect of promotion for premium players

Beauty and personal care companies with a high-end positioning such as L’Occitane have sought to maintain a premium image via various strategies based on creating a luxurious and memorable retail experience. This includes employing highly-trained and qualified retail sales staff who undergo continuous training and are able to give customers very personal attention and the best advice.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 8% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This is a considerable turnaround from the expected 2% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

Sales of premium fragrances are likely to have been more heavily affected by COVID-19 and the official response to it than sales of mass fragrances. There are two main reasons for this.

Recovery and opportunities

By the end of the forecast period, sales of fragrances are not expected to have recovered from the severe declines anticipated in the category during 2020 due to the COVID-19 situation. Prior to the onset of COVID-19, demand for premium fragrances were rising but already some under pressure due to the slowdown seen in Ecuador’s economic development over the course of the review period.

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