Fragrances in Saudi Arabia

PROSPECTS

Oriental fragrance brands support fragrances

With the declining number of expats in Saudi Arabia and higher employment rates leading to higher disposable income among Saudis, Oriental fragrances witnessed an increase in demand towards the end of the review period. Growth was also driven by the aggressive expansion of Oriental fragrance brands through store openings, e-commerce websites/mobile applications and availability in key internet retailers.

Western fragrance brands continue to develop

The Western fragrances segment continues to develop through new product launches, including Dior Joy, Versace Dylan Blue, Givenchy L’Interdit, and Hugo Boss The Scent. On-the-go pack sizes are emerging in the Saudi market, with Dior launching Poison Girl Roller Pearl and Poison Girl Unexpected Roller Pearl in a 20ml glass bottle.

Fragrances continue witnessing price increase

Fragrances have seen prices rise as a result of the imposition of VAT in the final year of the review period. Moreover, Western fragrance brands are seeing premiumisation, further driving up unit prices with unisex lines such as Maison Christian Dior, Guerlain Les Absolus d’Orient, Herrera Confidential, Armani/Privé, and Van Cleef & Arpels Collection Extraordinaire, as well as the increasing number of entrants such as Acqua Di Parma, and the wider availability of upmarket products in distribution channels.

COMPETITIVE LANDSCAPE

Arabian Oud Co leads fragrances

Arabian Oud Co continues to lead fragrances in Saudi Arabia primarily due to its large number of retail outlets, ongoing promotional campaigns, and diverse product range. Arabian Oud Co is continuously opening new branches and renovating old stores, as well as expanding its online presence through its e-commerce website and other key online retailers like souq.

Beauty specialist retailers remains the largest distribution channel

Beauty specialist retailers remain the largest distribution channel for fragrances in Saudi Arabia, as both Oriental and Western fragrances are sold primarily in beauty specialist retailers like Arabian Oud, Abdul Samad Al Qurashi, Wojooh, Paris Gallery and Sephora. Furthermore, ongoing branch openings, the launch of e-commerce websites/mobile applications and an increasing number of entrants such as Laure Boutique, Beauti, and Penhaligon's have helped the distribution channel to maintain its position.

Fragrance layering developing

Saudis have long been familiar with the concept of fragrance layering with familiarity with incense, oils and perfumes leading to the launch of small businesses by young Saudi entrepreneurs introducing fragrance mixes. Huda Beauty’s launch of its fragrance brand, Kayali (Arabic for “my imagination”), at the end of the review period, further supported the tradition.

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