Fragrances in Norway

PROSPECTS

Fredrik & Louisa focuses on niche fragrances

As there have become fewer ways to add value within fragrances, a rising degree of emphasis has been put on improving the retail experience. In 2017, a large fragrance retailer in Norway, Fredrik & Louisa, made a notable investment in premium niche fragrances, including creating specially ventilated fragrance or scent rooms in its stores and acquiring exclusive distribution of seven niche fragrance brands.

Men’s fragrances underpins value growth

Whilst women’s fragrances continued to account for the largest share of value sales in 2017, men’s fragrances displayed the most dynamic growth. This is partly because men’s fragrances is a less mature category than women’s fragrances, but also due to efforts by manufacturers in terms of segmentation.

Duty-free continues to affect sales

Fragrances in Norway continued to face strong competition from duty-free sales in 2017. Duty-free sales are not included in Euromonitor International data, as they are derived from a semi-captive environment.

COMPETITIVE LANDSCAPE

A Norwegian distributor maintains its leading position

Engelschiøn Marwell Hauge continued to strongly lead fragrances in 2017. The company managed to maintain its lead throughout the review period, only seeing a modest value share decline, despite losing the distribution rights for Chanel in 2016, when it formed its own Norwegian subsidiary.

A wave of new premium fragrance brands trade on novelty value

Premium brands already account for the vast majority of value sales of fragrances in Norway. Despite that, they continue to develop at a faster pace than mass brands.

A rising focus on niche fragrances

Towards the end of the review period retailers stated that the market had become somewhat stagnant when it came to traditional fragrances, and new fragrances had to be promoted by a major celebrity to succeed. As such, a rising focus on niche fragrances, exclusively available in a certain retail chain, is expected to be a way to add novelty value and to differentiate from other retailers and online stores in the forecast period.

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