Fragrances in South Korea

PROSPECTS

The affordable luxury trend supports the growth of premium fragrances

Although the domestic economy is still going through a tough stage, fragrances continued to see retail current value growth in 2017. This was largely due to the affordable luxury trend, which encouraged consumers to spend their disposable income on goods or experiences that bring satisfaction.

Unisex fragrances continue to gain popularity

South Korean consumers are adopting a more progressive approach when choosing fragrances, rather than following the traditional norm “floral scents for women, woody scents for men”. Brands such as Jo Malone and Byredo are popular amongst both genders, boosting sales of premium unisex fragrances.

International super-premium brands enter the market

Moreover, an increasing number of international super-premium brands are launching luxury fragrance lines or limited editions in South Korea and are gaining positive consumer feedback. These products are offered at higher unit prices, and thus provide satisfaction to consumers who are now seeking to experience ultimate luxury.

COMPETITIVE LANDSCAPE

International brands invest heavily as the category grows

Premium fragrance brands showed the most activity in 2017. Most importantly, in September 2017, Shinsegae International bought the domestic sales license for Diptyque, a French-based luxury fragrances company.

Some domestic manufacturers revamp their portfolios...

Some South Korean manufacturers are revamping their fragrances product portfolios. AmorePacific Corp announced that it had not renewed its license with Lolita Lempicka after the contract expired in March 2017, and instead decided to prioritise other brands, such as Hera, Annick Goutal and Innisfree.

...whilst others concentrate on other categories

Most of the other leading manufacturers are expected to keep away from direct competition with strong players in fragrances; seeking to find their own playgrounds by providing affordable alternatives to consumers, such as perfumed hair and body care products. For instance, LG Household & Health Care is expected to concentrate its efforts on other categories, rather than launching new products within fragrances.

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