Fragrances in Switzerland

PROSPECTS

Value growth to be limited by a number of factors

In 2018, fragrances in Switzerland experienced current value declines in both mass and premium fragrances, due to aggressive promotions, cross-border shopping and consumer boredom, as fragrances failed to be renewed. Over the forecast period, aggressive pricing in the retail environment is expected to continue putting pressure on unit prices, particularly in the premium segment.

Online sales of fragrances expected to flourish

Online shopping continued to benefit from changing lifestyles, the general pressure on time and demand for convenience. As a result, sales of fragrances through internet retailing have gradually increased.

Premiumisation expected over the forecast period

Over the forecast period, current value growth is expected to remain low in fragrances in Switzerland. Sales of premium fragrances are expected to fare better than mass fragrances, with beauty retailers pushing sales of such products, and the availability of niche premium brands increasing.

COMPETITIVE LANDSCAPE

Established premium brands dominate but mass disruptors enter the market

In 2018, Chanel maintained its lead in fragrances in value terms, thanks to successful best-sellers and its latest release, Chanel Gabrielle, which brought the brand back to its origins. However, fragrances remains fragmented in Switzerland, with a rising number of independent brands and players.

Product similarity contributes to interest in niche and value-added fragrances

Fragrance homogeneity led to the emergence of consumers who were more price-insensitive and willing to spend money on fragrances that provide a personal connection. The restricted availability of niche or indie fragrances creates the allure of exclusivity, and they have successfully attracted new consumers looking for a sense of uniqueness and individuality.

Smaller pack sizes to gain momentum

Consumers’ purchasing habits have started to shift, as they do not want to commit to one specific fragrance any longer. Smaller pack sizes are gaining popularity, as they allow consumers to build up a “fragrance wardrobe”, from which they can pick and choose.

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