Fragrances in Vietnam

PRE-COVID-19 PERFORMANCE

Rising living standards and fashion awareness boost demand for fragrances

In 2019, fragrances recorded strong value and volume growth due to higher living standards and better economic performance. Awareness is rising of the importance of using fragrances to improve body odour and show off one’s status as a result of strong advertising activity by leading players.

Competition from deodorant sprays, bath and shower gel contributes to slowdown

Another reason for the slowdown in growth within fragrances is the growing presence of deodorant sprays, which are constraining growth, particularly within men’s fragrances. Moreover, fragrances is also facing stronger competition from the growing popularity of perfume deodorant and bath and shower gel products, which usually offer consumers a strong and long-lasting fragrance.

Luxury brand image ensures international players remain in pole position

Coty continues to lead fragrances value sales due to the popularity of brands such as Davidoff and Guess. The company’s leading position can be attributed to its wide portfolio of prestigious fragrances known all over the world.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to rise by 5% in 2020 in 2019 constant value terms in light of the impact of COVID-19. By the end of March 2020, social distancing regulations had been officially applied by the government to control the epidemic.

Affected products within fragrances

All product areas across fragrances are expected to see lower than expected volume and value growth at constant 2019 prices in 2020 over the previous year as a result of the COVID-19 pandemic. The hardest-hit product areas will be unisex fragrances, which were increasingly fashionable towards the end of the review period but have few loyal customers.

Recovery and opportunities

Following the impact on retail volume and value growth in 2020 due to the COVID-19 lockdown and increased economic uncertainty, there will be a degree of recovery in 2021. However, growth will continue to be impacted for the remaining years of the forecast period.

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