Fragrances in Ecuador

PROSPECTS

Consumers search for personalised products

Between 2014 and 2016, fragrances was the most negatively affected by the ICE tax, which increased added charges from 150% to 300%. In addition, the 45% tariff surcharge on imported products also contributed to increased prices, a situation which affected imported fragrances, and led to domestic production of international brands such as Yanbal and Avon.

Nesting among consumers to reduce out of home expenses

To save money, local consumers tried to stay at home for longer and reduce out of home expenses. Categories such as fragrances are the most impacted with this consumer behaviour, as consumers staying at home do not feel the need to use fragrances.

Lack of popularity for unisex fragrances

Among premium and mass fragrances, the unisex category has almost lost all relevance in Ecuador. Consumers want to feel deeply identified by the fragrance they purchase.

COMPETITIVE LANDSCAPE

Yanbal Ecuador leads fragrances

Yanbal is the absolute leader of fragrances. The company, which in 2017 celebrated its 40th year in Ecuador, has positioned its fragrances as the category reference in Ecuador.

Las Fragancias leads premium fragrances

Gaining marginal value share in 2017 Las Fragancias continued to lead premium fragrances. It is a local company that represents many imported premium international brands.

Commercial agreement with the EU draws a more optimistic scenario for fragrances

In January 2017, Ecuador and the EU started a commercial agreement, in which import restrictions previously established by the former government were eliminated. In this sense, fragrances should witness a positive scenario.

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