Fragrances in Lithuania

PRE-COVID-19 PERFORMANCE

Sales of premium fragrances split into mainstream and niche segments

Towards the end of the review period, it became increasingly obvious that premium fragrances was experiencing a schism, with two separate segments emerging in the category. The first is mainstream commercial premium fragrances brands, while the second is prestige fragrance brands with a niche positioning.

Celebrity brands emerge strongly in mass fragrances

Within mass fragrances meanwhile 2019 saw a furthering of the trend towards products and brands named after celebrities. Throughout much of the review period, the emergence of a wide range of celebrity-endorsed mass fragrances with a major driver of growth in the category.

Mono-brand beauty specialist retailers emerge as e-commerce gains further ground

With demand in both mass fragrances and premium fragrances shifting towards higher-priced products in 2019, the scene was set for the strong emergence of high-and mono-brand retailers offering a wide range of premium fragrances in very pleasant and attractive retail surroundings. The most notable event in this area during the year was the opening of the first Jo Malone shop in Vilnius.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 17% 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

Sales of premium fragrances will inevitably have been more negatively impacted by COVID-19 than sales of mass fragrances. This is simply due to the fact that premium fragrance brands are considerably more expensive than mass alternatives and therefore consumers would have had far more difficulty justifying spending money on these products as their incomes came under pressure due to the COVID-19 pandemic.

Recovery and opportunities

Once the dust has settled on the COVID-19 situation, it is expected that the sales trends that were in evidence in fragrances prior to the onset COVID-19 will return to the category. This means that premium fragrance categories are expected to display superior sales dynamics to their mass equivalents, enabling them to bounce back far stronger than mass categories from the substantial sales declines expected to be seen over the course of 2020.

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