Fragrances in Poland

PROSPECTS

Fragrances will benefit from the thriving Polish economy

Prospects of stable GDP growth, growing disposable incomes and the lowest unemployment rates in years provide a luminous future for Polish beauty and personal care. As a stable and well-settled category in the consciousness of Polish consumers, fragrances will inevitably gain from the increased spending on personal care.

Sunday ban on trade causes new distribution strategies

In previous years, distribution patterns for fragrances were rather stagnant; however, newly introduced legislation forces companies to reconsider their approach. To retain their positions, players will have to develop their internet presence, as this channel is excluded from the ban.

Lower-priced premium fragrances boost sales

Polish consumers, along with rising incomes, are beginning to purchase products from a higher price level, although they continue to retain their frugal shopping habits. Rising availability of premium brands such as Calvin Klein or Davidoff (available even through discounters) improves sales value of fragrances.

COMPETITIVE LANDSCAPE

Avon Poland gains ground on Coty

Despite severe fragmentation within Polish fragrances, two players could be clearly labelled as leaders; Coty and Avon. Both companies represent two extremely different approaches to the category, yet both appear to be effective.

Local players expect growth

Traditionally fragrances is not a category with a huge influence of Polish companies. The premium segment has no significant local producer, while the mass segment offers three bigger players: La Rive, Uroda Polska and Miraculum.

Discounts destroy profitability

Polish consumers become accustomed to large discounts that occur during specific periods. There are increasing numbers of occasions on which the discounts are offered, such as Valentine’s Day or Black Friday, which were not previously known to Polish consumers.

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