Fragrance sales constituted almost 10% of the total cosmetics and toiletries sales in the United States in 2010. While the fragrance market saw a sharp decline in 2009, this year has started to show some much needed recovery.
When it comes to fragrance purchases, customers like the attention and advice that is available to them at specialty stores. As a result, specialty store sales have contributed by 26% to the overall industry rebound in 2010. Additional growth has been generated by the popularity of on-line purchases. Department stores, on the other hand, have seen the greatest decrease in sales.
Also gaining momentum is the trend of celebrity and fashion designer endorsements, as people want to be associated with their favorite star. Celebrity fragrances generally target teens and young adults while designer fragrances are aimed at a more sophisticated consumer. Although consumers might not be able to afford to purchase designer couture, there is much allure in the fact that they can purchase a designer fragrance at a fraction of the cost.
In the women’s luxury perfumes segment, Esteé Lauder and Chanel remain clear favorites. Their signature fragrances, respectively Beautiful and Chanel No. 5, have maintained a place on the most sought after list for over ten years. However, while ten years ago, top selling fragrances were bringing in over $40 million in manufacturers sales per year, today the numbers are lower.
High growth rates for fragrances are not expected over the next several years as consumers have changed their purchasing patterns due to the sluggish economy. With worries about rising unemployment and foreclosures, the purchasing of fragrances has taken a backseat. Therefore, while consumers will likely continue to wear fragrance, they might abandon the fragrance wardrobes they once had and focus more on necessities instead.
Look out for a second article, this time on fragrance marketing, coming out on our blog on Thursday this week!
Read more about the fragrance market: