Fragrances in Latvia

PROSPECTS

Larger packs offer better value for money

Getting value for money remained a priority for Latvian consumers in 2017 and so larger pack sizes such as 100ml performed well, with retailers displaying different sizes alongside each other to highlight the cost benefit to consumers. On the other hand, an increasing number of consumers decided to opt for smaller sizes, preferring to acquire a collection of different fragrances for use at different times of the year or on different occasions.

New launches the main driver of sales in a saturated category

New launches helped to drive sales in 2017. For example, Oriflame introduced its Sublime Nature range, a collection of premium scents created using non-chemical oil extraction technology, thus appealing to environmentally-conscious shoppers.

Category witnessing an ongoing shift towards niche premium products

Premium fragrances continued to perform well in 2017 thanks to offering both a wide range of well-known and established brands as well as niche scents. The latter are mainly targeted at consumers who are tired of widely available premium brands and are looking for something more individual.

COMPETITIVE LANDSCAPE

Coty leads a very fragmented category

In 2017, fragrances remained a fragmented category, albeit largely in the hands of global players, led by Coty, L'Oréal and Procter & Gamble. Brand loyalty tends to be fairly strong in fragrances, with many consumers sticking with the same perfume they have used for many years or opting for a different variant under the same umbrella brand.

Internet retailing continues to gain ground

With per capita expenditure on premium fragrances expected to increase significantly over the forecast period, competition between retailers is set to only intensify. Hence, they will need to focus on offering impeccable customer service as well as marketing and promotional activities.

Growing consumer focus on perfume concentration

As Latvians are becoming better educated about fragrances, they are paying more attention to not only specific scents but also concentration. While previously the focus was on getting value for money, local shoppers have now started to recognise the difference between eau de toilette and eau de parfum.

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