Fragrances experienced strong current value declines across both the mass and premium segments in 2020, although the latter was the hardest hit. With people spending more time indoors, this led to a change in grooming patterns.
In an attempt to revive sales in the category, retailers across both online and offline stores regularly offered price promotions in 2020. It was not uncommon to see prices being discounted by up to 60%, especially around pay day.
Prior to the pandemic, brands promoted their products in-store and used sales representative to introduce new scents to consumers in stores and across shopping centres. Lockdown and COVID-19 restrictions heavily impacted the sale and promotion of fragrances, as not only did footfall decrease in physical stores, but it also became tricky for sales representatives to approach consumers and offer to spray perfume on their skin.
Fragrances are seen as non-essential products by the majority of consumers, and with increased pressure on consumers’ wallets, the category will be one of the last one to recover from the impact of COVID-19. The presence of alternatives such as deodorant sprays will make it easy for price-conscious consumers to switch to cheaper options.
Whilst the nature of the fragrances category is such that consumers are more inclined to purchase these products after trying them out, in terms of building brand awareness and visibility, e-commerce will play an important role in the forecast period. At the moment, potential customers are not aware of all the new products that are hitting the shelves due to lower footfall in stores, and this lack of awareness is making it harder to sell new scents.
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