Fragrances in Switzerland

PROSPECTS

Fragrances relies on sensation to drive sales

Fragrances has reached saturation and opportunities lie mainly in the ability to create excitement by launching innovative scents. Fragrance companies will likely continue to place greater importance on consumer insights, realising that offering fragrance options which reflect individual personalities and aspirations is increasingly important to consumers.

Consumers seek personalised scents

As consumers demand more distinctive scents and customised perfumes, niche brands achieved positive growth over the review period by addressing consumer demand for fragrances which reflect individual personalities and aspirations by offering personalised scents and lifestyle perfumes. Niche brands were a strong reaction to the mainstream premium fragrances launched at an incredible pace and which are considered as purely commercial brands.

Fragrances to continue to evolve

Many brands are expected to continue to rely on a strategy of frequently launching short-lived fragrances to keep revenues flowing. However, this approach may not be the solution, especially in the Swiss market where a fragrance struggles to stand out, lasts a season or two on average, and depends on retailers’ selection processes to gain adequate shelf space.

COMPETITIVE LANDSCAPE

Chanel continues to enjoy strong brand equity

Fragrances is a brand-orientated category with fierce competition. Thus, the competitive environment remained extremely fragmented in 2017.

A myriad of launches in 2017

As in previous years, 2017 witnessed an avalanche of fragrance launches. All received strong advertising and communication support both offline and online.

Scent innovation is key

An increasing number of Swiss consumers appreciate fragrances as they attach greater value to an olfactory identity and are willing to pay a higher price, while brand owners are gradually steering away from positioning fragrance as a mere beauty commodity. This situation is evident in the weak outlook for mass fragrances.

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