Fragrances in Vietnam

PROSPECTS

Fragrances experiencing slower growth rates due to maturity

Towards the end of review period, growth of fragrances in Vietnam started to experience a slowdown. The key purchasers of fragrance in Vietnam are those working professionals located in big cities such as Ho Chi Minh and Hanoi.

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

Another reason for the slowdown in growth of fragrances in 2018 is due to the strongly rising presence of deodorant sprays, which constrained the growth rate particularly for men’s fragrances. Moreover, the fragrances category also faced stronger competition from rising popularity of perfume deodorant and bath and shower gel products, which usually offer consumers strong and long-lasting fragrance.

Unauthorised products continue to penetrate the marketplace

In the review period, the volume of unauthorised products that appeared in the marketplace increased strongly. Unauthorised products are typically personally imported for personal use instead of being reported to Vietnam customs as products to be sold in the retail markets.

COMPETITIVE LANDSCAPE

Coty remains the leading player

Coty continued to lead value sales of fragrances in 2018 with its popular brands Davidoff and Guess. Coty’s leading position is thanks to its wide portfolio of prestigious fragrances known all over the world.

Premium brands rises strongly

In 2018, premium brands such as Coty, Shiseido and Estée Lauder continued to dominate fragrances and helped generate double-digit growth in sales value. This was mainly thanks to the improved economy, but also because key purchasers are middle- and high-income consumers, and they prefer to purchase premium products to satisfy their needs and demands.

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