Fragrances in Taiwan

PROSPECTS

Healthy growth set for fragrances throughout the forecast period

Fragrances was one of the most dynamic categories in beauty and personal care in 2018 with this trend set to continue over the forecast period. Much of the category’s performance stems from continuous innovations and launches of new scents in response to rising demand as consumers are paying more attention to personal image and personal grooming.

Premium brands drive growth, especially those of international repute

Rising consumer purchasing power is stimulating sales growth of fragrances as it is common for consumers to reward themselves for all their hard work through the purchase of a premium fragrance. The fragrances category in 2018 continued to be heavily populated by international brands present with their premium offerings.

Mass fragrances continue to suffer from a loss of appeal

Mass brands remained far less popular than their premium counterparts in 2018 and also witnessed significantly lower growth in value sales. Mass women’s fragrances in particular is set to struggle during the forecast period, as these products do not offer the same kudos or appeal as premium brands.

COMPETITIVE LANDSCAPE

Jo Malone further extends its strong lead in 2018

One of the most popular brands in 2018 is Jo Malone, which is not only enjoying rapid growth but is outstripping the category in terms of growth as well as that of other strong players, such as Dior and Chanel in Taiwan. The brand is benefiting from the so-called “WOM” effect, which means it is creating a buzz online.

Parallel imports and growth in travel population restrain growth

Many consumers enjoy trying out new scents in department stores but then buy products online, from where they can generally avail themselves of prices that are more competitive. These products are mostly parallel imported or brought into the country by professional shoppers who travel abroad and bring back popular brands by multinational players to sell and earn commission.

Premium fragrances becomes increasingly competitive

In countries such as Taiwan, it is common to buy fragrances as gifts, especially for birthdays, Mother’s Day and Christmas. The gift of a fragrance is considered thoughtful and a demonstration that the giver has put some thought into selecting the most suitable scent for the receiver.

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