Fragrances in Slovakia

PRE-COVID-19 PERFORMANCE

Premiumisation drives growth in 2019 while gender-neutral fashion trend boosts sales of unisex fragrances

Premium fragrances witnessed stronger growth in 2019 in current value terms than mass fragrances. With incomes rising consumers started to invest in higher quality products towards the end of the review period, with some brands such as Giorgio Armani, Chloé by Chloé and Dolce & Gabbana being aspirational.

E-commerce booming while store-based retailers focus on ways to keep customers coming back

E-commerce rose to prominence during the review period with the benefits of shopping online proving popular with consumers. Many store-based health and beauty specialist retailers now offer online shopping while many consumers also feel comfortable shopping for products in neighbouring Czech Republic, with there being no language barrier.

Mass fragrances sees sluggish growth with sales propped up by the popularity of direct selling

Despite seeing only modest growth in 2019, mass fragrances remained the largest category. Celebrity fragrances from the likes of David Beckham and Katy Perry retain a healthy presence in mass fragrances, with new scents from Britney Spears and Jennifer Lopez both being launched in 2019.

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 1% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

Mass fragrances relies heavily on direct selling for sales and as such the category is likely to be extremely hard hit by social distancing rules, with consumers unable to visit each other’s homes. Added to this, consumers are also expected to prioritise their spending, with it being unlikely that this will favour either mass or premium fragrances.

Recovery and opportunities

Once social distancing rules are relaxed, and distribution stabilises, it is expected that fragrances will gradually return to growth levels similar to those seen at the end of the review period. Nevertheless, this will depend largely on the economic impact of COVID-19, as if incomes are significantly impacted then it is likely that consumers will have to make budgetary decisions, including possibly reducing their spending on and usage of fragrances.

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