Fragrances in Greece

PRE-COVID-19 PERFORMANCE

Positive sales growth recorded as economic recovery supports increasing demand

The slow and steady recovery of sales of premium fragrances continued in 2019, in line with the gradual recovery of the Greek economy, rebounding consumer confidence and rising numbers of inbound tourists. At the same time, premium fragrances are benefiting from the launch of super niche brands in Greece.

2019 sees another slew of new launches in both premium and mass fragrances

Fragrances is a product category in which new products are launched on a very regular basis. 2019 was no exception as numerous key launches were seen within women’s premium fragrances, including Lancôme Idôle (with very slim packaging) and YSL Libre.

“Smell-alike” products continue to pose a strong competition to mass fragrances

2019 saw a major threat to sales of mass fragrances continue to emerge in Greece: independent perfumeries that sell bulk packs of imitation fragrances that are designed to mimic the scents of leading premium brands. Although these products are unlikely to be stealing significant sales from premium fragrance brands, they are eroding sales of mass fans as they sell at similar price points.

Folli Follie’s bankruptcy results in major changes in the competitive environment

During 2019, Notos Com Holdings acquired the local rights to the Dolce & Gabbana and Shisheido brands from Folli Follie, the noted Greek manufacturer of luxury jewellery, watches and personal accessories that filed for bankruptcy in 2019. Notos Com Holding’s move into premium beauty and personal care followed the company’s refinancing and restructuring by British fund M&G.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 3% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This represents a complete turnaround from the expected 3% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

All categories of fragrances are expected to have been negatively impacted by home seclusion due to COVID-19 and the subsequent reduction in the opportunities to wear fragrances. However, sales of premium fragrances are likely to have come under significantly more pressure than sales of mass fragrances as the interruption to business activity that COVID-19 and the government’s reaction to it caused during the first half of the year has led to widespread economic uncertainty.

Recovery and opportunities

Fragrances is slated for very moderate sales growth over the forecast period. The effects of COVID-19 notwithstanding, the category is set to continue facing challenges due to the non-essential status of fragrances.

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