Fragrances in Russia

PROSPECTS

Premium unisex fragrances fuelled by consumers’ interest in niche brands

There was growing popularity of niche fragrances amongst Russian consumers at the end of the review period. This was reflected in the performance of premium unisex fragrances that experienced the fastest current value growth in 2017, since most niche brands have a unisex product range.

Trading down supports mass fragrances with switching from premium

As Russians continued to experience lower disposable incomes in 2017, they became highly sensitive to unit price. This led to restrained spending on non-essential products, including fragrances and trading down.

Large discounting by major retailers as attempt to revive sales of premium fragrances

Decreasing consumer spending, which caused a decline in demand for premium fragrances forced retailers to take incentivising measures to stimulate sales of premium fragrances. Within overall beauty and personal care, fragrances were the most affected by the increasing share of promotions with discounts at the end of the review period.

COMPETITIVE LANDSCAPE

Inspired by growing popularity of niche fragrances, companies enter new brands

An increasing number of international niche brands launched premium unisex fragrances in Russia to target both male and female consumers at the end of the review period. Therefore, By Kilian launched Black Phantom in 2017.

Companies significantly rely on television promotions

In 2017, there was a great deal of television advertising, supporting new launches or existing products within fragrances both in mass and premium segments. Television advertising continued to be regarded as one of the best methods to cover the widest consumer audience.

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