Fragrances in Russia

PRE-COVID-19 PERFORMANCE

Trends in fragrances in 2019 include natural ingredients, unisex scents, and legendary fragrances being re-released by iconic brands

The global trend for natural ingredients in fragrances was apparent in Russia during 2019 and is widely discussed in the industry. Even players creating mass-market perfumes, such as Brocard Group, began to offer fragrances manufactured from natural ingredients, with the group launching a new collection named Aromatherapy in 2019, created from 100% natural ingredients.

In 2019, a high volume of independent players, promoted across social media, stifles growth in fragrances and fragments the landscape

Threats to the growth of fragrances in 2019 included the appearance of new players and an increase in the number of launches - including a high volume independent perfumers which were promoted through Instagram. These launches took share from more prominent players and fragmented the landscape.

International players lead the landscape in 2019, as Seldico comes in first, offering well-established player Christian Dior, Bvlgari and Givenchy

Seldico OOO led fragrances in 2019, benefiting from operating the most famous international brands, such as Christian Dior, Guerlain, Givenchy, Kenzo and Bvlgari. In fact, multinational players widely dominate sales of fragrances in Russia, having the budgets to support high-level marketing campaigns, with strong brand recognition and substantial distribution networks.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 18% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected decline of 2% forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

All items within fragrances are predicted to record a significant double-digit retail value decline in 2020, due to the impact of the COVID-19 pandemic. With beauty retailers and other unessential stores closed, access to fragrances was limited during Q1 of 2020, with e-commerce being the main source of purchases.

Recovery and opportunities

Following the sharp decline seen in retail volume and value at constant 2019 prices in 2020, due to the impact of the COVID-19 lockdown and increased economic uncertainty, there will be a degree of recovery in 2021. This increase will mainly be driven by established growth in premium fragrances; however, mass fragrances will also record positive results, with only mass unisex fragrances set to post a decline.

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