Fragrances in Estonia

PROSPECTS

Fragrances strongly impacted by premiumisation trend

Premiumisation was the core trend defining performance of fragrances in 2018. The improving purchasing power allowed more consumers to choose premium fragrances over mass.

Internet retailing influences fragrances the most

Internet retailers held the highest value share in fragrances after beauty specialist retailers in 2018 and saw the highest value growth over the year as the number of trusted online retailers constantly increased. The ability to compare prices of different retailers and choose the best pricing is the major factor behind the success of online retailers.

Price competition intensifies in fragrances

At the same time, price competition has been increasing in this category, largely affected by the development of internet retailers over the last several years, and that has moderated unit price growth. Price-based promotions have become very common in fragrances, especially in the premium segment.

COMPETITIVE LANDSCAPE

Coty leads sales of fragrances in 2018

Coty maintained its leadership in fragrances in 2018. The company became the number one player in 2016 after it obtained more than 10 fragrance licences from Procter & Gamble.

Consumers look for well-known brands

Estonians tend to look for well-known and established brands, particularly in the premium segment. This limits development potential for newcomers and smaller players.

Existing players will dominate and define future development of the category

Most competition is expected to evolve in terms of prices amongst current players, as no new game-changing players are expected to evolve in the near term due to the difficult entry level. In addition to this, promotion of new unknown brands is also complicated, as most international brands benefit from advertising of their products at the global level.

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