Fragrances in Uruguay

PROSPECTS

Exchange rate fluctuations impact sales

Fragrances are not considered to be essential personal care products in Uruguay and are instead perceived as expensive and unnecessary products. Consequently, the majority of sales are accounted for by middle and high income consumers.

Demand for cheaper alternatives

Low income consumers sometimes opt for cheaper alternatives to fragrances such as deodorants or body splashes. Moreover, as the majority of low income consumers do not have the possibility to travel, they do not buy these products in duty free stores either.

Women continue to spend more in fragrances

Fragrances are used by both women and men equally in Uruguay. Unlike other beauty products, which are perceived as being too feminine by most men, fragrances are a common product for both sexes.

COMPETITIVE LANDSCAPE

International companies continue leading sales

Total sales of fragrances from international companies far surpass those of national companies. This can be attributed to the fact that, traditionally, there was a belief that imported fragrances offer better quality.

Focus on different price ranges and innovation to attract consumers

Both companies focus on different price platforms. For example, leading player Cosmeticos Avon de Uruguay mainly targets mass fragrances, while L’Oréal Uruguay focuses on premium products.

Limited competition from local players

Although the majority of sales share in this area is accounted for by international companies, local player Terry ranked third in 2017, despite only offering cheaper mass fragrances. There are still no local companies in this area capable of positioning their products in premium categories.

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