Fragrances in New Zealand

PRE-COVID-19 PERFORMANCE

Increased demand for premium and natural fragrances in 2019

Demand for premium fragrances grew stronger than for their mass counterparts in 2019, especially men’s premium fragrances as men are spending more. Premium fragrances are becoming increasingly popular amongst millennials who wear perfume for individuality and to experience affordable luxury.

Discounting appeals to value-conscious consumers

Fragrances is saturated with a high number of product offerings, especially in the women’s segment. Fragrances are distributed through department stores including Farmers, discounters such as Chemist Warehouse and chemists/pharmacies including Life pharmacy and Unichem.

Elizabeth Arden maintains its lead in 2019 despite share loss

Elizabeth Arden continued to lead fragrances in 2019. The player owns a number of brands including Red Door and collaborates with celebrities such as Taylor Swift and Elizabeth Taylor (Elizabeth Taylor White Diamonds).

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 4% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 2% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

Decline is expected across the board in 2019 constant value terms and volume terms in 2020 in fragrances due to COVID-19. Premium beauty, especially fragrances, is expected to suffer for some time as people are spending more on essential items.

Recovery and opportunities

Sales of fragrances should pick up with the easing of restrictions in 2020 and improve during the course of the forecast period, although growth will be slower than that recorded over the review period in a time of economic uncertainty as fragrances are generally regarded as non-essential items. Price promotions are likely to become even more frequent for both premium and mass fragrances, particularly around key discount events such as Black Friday and gifting occasions such as Christmas and St Valentine’s Day.

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