Fragrances in Indonesia

PRE-COVID-19 PERFORMANCE

Cost concerns and discounting impact current value growth for premium fragrances in 2019

Fragrances saw the lowest current value growth across beauty and personal care in 2019, with most consumers regarding these products as non-essential. Many consumers cut back on spending towards the end of the review period, with fragrances the most likely product to be cut from shopping baskets, as most use deodorants rather than fragrances for scent.

Players seek new growth areas to drive sales in 2019, offering roll-on fragrances and increasingly targeting men

Strong growth in travel among Indonesian consumers resulted in roll-on fragrances gaining popularity towards the end of the review period. Brands that offer increasingly popular roll-on fragrances include Victoria’s Secret, L’Occitane and Etude House.

Heavy share fragmentation in 2019 with little brand loyalty

Fragrances remained highly fragmented at the end of the review period, with smaller players dominating and often continuing to gain share. Domestic player Kinocare was the only company to have a double-digit value share in 2019 due to its offer of affordable mass brands Eskulin and Master Cologne in men’s and women’s fragrances respectively.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 7% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an 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 product areas across fragrances are expected to face declining retail volume sales in 2020, with premium men's and women’s fragrances being hit hardest. These products will not only be impacted by consumers using fragrances less frequently as they spend more time at home but also by economic uncertainty, with consumers seeking to minimise spending.

Recovery and opportunities

Fragrances is expected to face a challenging time in the forecast period, in the wake of the COVID-19 pandemic and ongoing economic uncertainty. Many consumers will see little need for these products, which are expected to see ongoing value decline at constant 2019 prices until 2024 and a poor performance over the forecast period as a whole.

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