Fragrances in Switzerland

PRE-COVID-19 PERFORMANCE

Value growth in fragrances limited by a number of factors

Fragrances were seeing opposing factors impacting growth at the end of the review period. While demand for premium, unique and exclusive products was driving value sales on the one hand, high levels of saturation and limited innovation or new product launches was resulting in declining interest and price competition, for example in the form of discounting or cross-border shopping in cheaper neighbouring countries.

Online sales growing but buyers still like to “experience” a fragrance before purchasing

Online shopping continued to benefit from changing lifestyles, the general pressure on time and the demand for convenience. As a result, sales of fragrances through e-commerce have been gradually increasing.

Chanel leads, Christian Dior most dynamic, limited private label presence

Due to strong demand for premium, exclusive products and brands as well as its long history and high levels of brand recognition Chanel continued to lead fragrances in 2019. Previous launches such as Coco Mademoiselle were still among the main growth drivers.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 4% in 2020 at constant 2019 prices in light of the impact of COVID-19. This compares to the stagnation forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

All fragrances products, whether premium or mass, men’s women’s or unisex, and even sets/kits, will record clearly declining value sales in 2020 at constant 2019 prices. For all products this will represent a much worse performance than they recorded in 2019, although more so for the premium fragrances.

Recovery and opportunities

After the decline seen in 2020, fragrances will immediately return to seeing positive – albeit modest – value growth in 2021 at constant 2019 prices. Annual growth rates for fragrances in the rest of the forecast period after 2020 will continue to be positive, albeit gradually declining with each passing year, slipping to virtual stagnation by 2024 – but, after 2020, will still be slightly stronger than the annual growth rates predicted during research conducted at the end of 2019, before the spread of COVID-19.

Files are delivered directly into your account within a few minutes of purchase.