Fragrances in Romania

PRE-COVID-19 PERFORMANCE

Women the core consumers of fragrances, but unisex fragrances seen as offering potential

Fragrances for women account for the greatest share of fragrances sales in Romania, followed by men’s fragrances, fragrances sets/kits and unisex fragrances. Fragrances sets/kits are usually seasonal in nature, purchased mainly during the Christmas period as gifts, whereas unisex fragrances is still considered a niche category with a huge growth potential.

Growing interest in mass brands imitating the scents of premium brands, but premium fragrances still more dynamic

In Romania, mass fragrances has greater sales than premium fragrances, mainly due to the strong positioning of direct sellers. Although the premium segment is recording significantly higher growth rates than the mass segment, not all Romanian consumers can afford to purchase expensive fragrances and are looking for alternatives that will offer them an olfactory experience similar to premium brands’ scents.

Direct sellers lead mass fragrances

Direct selling is the leading distribution channel in mass fragrances, with the two main players, Avon Cosmetics Romania and Oriflame Cosmetics Romania, accounting for more than half of value sales. The popularity of these companies is the result of their massive advertising campaigns and the wide availability of their products.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 14% in 2020 at constant 2019 prices in light of the impact of COVID-19. This compares to the 4% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

While premium fragrances have generally been recording stronger growth rates than mass fragrances in recent years, this will be turned around in 2020, with premium products seeing a slightly steeper decline in value sales at constant 2019 prices. Fragrances generally will be hit by the measures to slow the spread of COVID-19, such as stay-at-home orders, increased working from home, social distancing and closures of non-essential retail outlets.

Recovery and opportunities

After 2020’s sharp decline in value sales at constant 2019 prices, growth will quickly return to positive rates in 2021. Indeed, the 2021 growth rate will outperform the most recent prediction for 2020, made during research conducted at the end of 2019, before the spread of COVID-19.

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