Fragrances in Egypt

PROSPECTS

Influence of unit price hike on consumers

The hike in unit prices within fragrances was enormous in comparison with the second quarter of 2016, due to the free fluctuation of the Egyptian pound and customs issues that were evident after the unit prices started to settle down. This had a negative influence on local consumers who specifically reduced their purchases and usage of premium fragrances.

Higher number of international brands entering Egypt

Egypt is now exceedingly updated with international brands; leading companies in Egypt are trying to bring more internationally well-known brands to address the different needs of local consumers and at the same time, expand their nationally-owned brands.

Mass versus premium fragrances

The choice between mass versus premium fragrances is linked mainly to price range and the priorities of life expenditure. However, fragrances are considered one of the important luxuries in consumers’ lives.

COMPETITIVE LANDSCAPE

Leading player loses ground

Dr El-Chabrawichi Co continued to lead overall fragrances, as well as holding its strongest position within mass fragrances in 2017; this company offers the most affordable fragrance in Egypt (555) that mainly targets low-income consumers. However, it lost value share in 2017 due to competition from new brands that have entered Egyptian fragrances as they gained some attention from local consumers due to their reasonable unit prices but greater variety of scents and attractive packaging.

Notable campaigns achieve new level of success

Many national brand owners ran interesting promotional campaigns in 2017 to attract an increasing number of consumers, with many of them adopting the most successful trend of using social bloggers who promote these products and often attend brand launches in the stores. One of these international brands was Versace; with a special promotional code offered by social bloggers to consumers who purchase these specific brands from official retailing stores that they promote.

Direct sellers’ performance while offering higher unit price

Oriflame Egypt Co lost value share in 2017, although it continued to record double-digit value growth, due to its higher unit price, which resulted in it moving into the lower end of premium fragrances. This may have encouraged some consumers to shift towards more affordable fragrances or to shift towards a higher level of fragrances.

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