Fragrances in Peru

PRE-COVID-19 PERFORMANCE

Consumers economise by buying smaller bottles of fragrances in 2019

Users of fragrances are generally loyal to their preferred brand in Peru, with many often opting to purchase smaller quantities in an effort to economise rather than switch to cheaper brands. Peruvians who are 40 years of age and above tend to be highly traditional and remain loyal to their fragrances.

Premium fragrances continues to gain ground

Although the vast majority of Peruvians continued to choose mass fragrances, premium brands continued to gain in 2019. Wealthier consumers often opt for premium fragrances as these exude a certain level of class.

Interesting channel mix for fragrances in Peru

Direct sellers remained the clear leader in the distribution of fragrances in 2019, largely because most Peruvians are familiar with their fragrances and remain loyal. Direct sellers also offer attractive unit prices when compared to the majority of retailer brands, although their products are considered to be of high quality, often with the advantage of providing a fragrance that lingers longer on the body.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 11% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 4% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

Premium women’s fragrances recorded the strongest constant 2019 value growth within fragrances in 2019. It appears that more women adopted the “less but better” approach and pampered themselves with premium brands despite their considerably higher average unit prices than mass fragrances.

Recovery and opportunities

It is likely that fragrances will take some time to return to strong constant 2019 value growth, with declining sales expected for 2021 and low growth the year after until achieving strong growth in the final two years of the forecast period. Despite the strong growth of premium fragrances over the review period, mass formats are anticipated to remain by far the most popular going forward, given the lower disposable incomes of the majority of Peruvians.

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