About this report

At first sight, the women’s fragrance market is extremely buoyant with dozens of new fragrance launches crowding retailers’ shelves. The reality is that only a fraction survive beyond their first year as retailers clear the decks for the next round of launches. Creating an enduring classic requires patience and above all consistent investment in above- and below-the-line support. Instead, many fragrance companies are jumping on the celebrity bandwagon that provides short-term rewards but requires continual renewal in order to keep up with the demands of retailers and customers.

Contents

Issues in the Market
Key themes
Definitions
Market in Brief
New brands drive market growth
A highly competitive market
Fragrance companies exploit new niches
Strong gift market
New retailing opportunities
Future
Internal Market Environment
Key points
Attitudes towards image and grooming
Figure 1: Attitudes towards personal appearance – women, 2006
Cult of celebrity
Rise of the individual
Relationship status?
Broader Market Environment
Key points
Regulation and Legislation
Smoking ban good for fragrance?
Demographics
Figure 2: Structure of the UK female population, by age, 2002-12
Holidays
Figure 3: Outbound holiday visits, by region visited, 2002-06
Value for money
Figure 4: Attitudes towards ‘expensive perfumes’, 2002-06
Competitive Context
Key points
Scented toiletries
Figure 5: UK value sales of competitive markets, at current prices, 2003-07
Competition from Christmas gift items
Natural trend
Scent marketing
Strengths and Weaknesses in the Market
Strengths
Weaknesses
Market Size and Forecast
Key points
Figure 9: UK value sales of women’s fragrances, at current prices, 2002-12
Value sales growth struggling in spite of NPD
Christmas fever
Fragrance brands use GWPs to broaden appeal
The future of the market
Segment Performance
Key points
Figure 10: UK retail value sales of women’s and unisex fragrances, by sector, 2002-07
Fashioning the female fragrance market
Celebrities in control
Premiumisation of perfumes
Figure 11: Retail value sales of women’s fragrances, by type, 2003-07
Market Share
Key points
Manufacturer shares
Women’s fragrances
Figure 12: Manufacturers’ shares in women’s fragrances, 2005-07
Brand shares
Women’s fragrances
Figure 13: Brands’ value shares of women’s fragrances, 2006 and 2007
Companies and Products
Coty Inc
L’Oréal/Prestige & Collections
Chanel
Estée Lauder Companies
Procter & Gamble Prestige Beauty
Kenneth Green Associates
Other brands
Elizabeth Arden
Givenchy
Guerlain
Incos Brand Managers
LVMH
Puig
YSL Beauté
Distributors and niche
Brand Communication and Promotion
Key points
Traditional versus new media
Figure 14: Main monitored media advertising spend on women’s and unisex fragrances, 2003-06
Adspend by advertiser
Figure 15: Main monitored media advertising spend on women’s fragrances, by advertiser, 2003-06
Advertising strategy
Building awareness
Marketing themes
Sex sells?
Sampling opportunities
Channels to Market
Key points
Changes in fragrance retailing
Figure 16: Retail distribution of women’s fragrances, 2005-07
AS Watson becomes important player
Department stores
Boots
The Fragrance Shop
Passion for Perfume
The Internet
Consumer – Usage and Frequency
Key points
Usage
European context
Figure 17: Penetration and frequency of using fragrances, by country – women, 2006
Trends of usage
Figure 18: Trends in penetration and frequency of using fragrances – women, 2001-06
Reasons for use
Figure 19: Fragrance usage, May 2007
Young women are more experimental
Older women tend to be more conservative
Using the Internet to target fragrance users
Who wears celebrity fragrances?
Consumer Purchase
Key points
Buying intentions
Figure 20: Fragrance purchasing habits, May 2007
Dutiful buyers
Younger women may need convincing
The role of the media
The present that makes scents
Figure 21: The purchase of fragrance as gifts, by gender, May 2007
Appendix
Consumer research
ACORN
Advertising data
Abbreviations
Market size and forecast
Factors used in the forecast
Consumer usage and frequency
Figure 24: Penetration and frequency of using fragrances, by country – women, 2006
Figure 25: Penetration and frequency of using perfume/eau de toilette – women, by age, income, working status, region, presence of children and household size, 2006
Consumer – Usage and frequency
Figure 26: Most popular fragrance usage, by age, region, social grade, daily newspapers, Sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007
Figure 27: Fragrance usage, by age, region, social grade, daily newspapers, Sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007
Figure 28: Most popular fragrance purchasing habits, by age, region, social grade, daily newspapers, Sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007
Figure 29: Popular fragrance purchasing habits, by age, region, social grade, daily newspapers, Sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007
Figure 30: Most common attitudes towards fragrances, by age, region, social grade, daily newspapers, Sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007
Figure 31: Most common attitudes towards fragrances, by age, region, social grade, daily newspapers, Sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007
Cross-tabs
Figure 32: Use of fragrances, by purchase, May 2007
Figure 33: Use of fragrances, by attitudes towards fragrances, May 2007
Figure 34: Purchase of fragrances, by attitudes towards fragrances, May 2007
Clusters
Figure 35: Cluster groups by use, purchase and attitudes towards fragrance, June 2007
Figure 36: Cluster groups, by age, socio-economic group, region, household income and Internet usage, June 2007