Europe is a place that is associated with the largest
worldwide market for fragrances and perfumes, and Europeans are known to be the
finest connoisseurs of scents. Saying so, it can be easily assumed the European
companies are also the one dominating the global market and produce majority of
the world’s desirable brands. The international market for fragrances and
perfumes is highly polarized and fragmented, given the extreme faddish fashion
trends dictating the market’s fortunes. Key market participants include Avon Products, Inc, Bulgari S.p.A, Chanel
SA, Coty, Inc, Elizabeth Arden, Inc, Estee Lauder, Inc, Gucci Group NV, Gianni
Versace S.p.A, Liz Claiborne, Inc, L’oreal SA, LVMH Group, Procter &
Gamble, Puig Beauty & Fashion Group S.L, Polo Ralph Lauren Corporation and
Revlon, Inc.
Now you might want to ask yourself a question, are Europeans spending the same amount of money now as they were before the financial crisis? Customers were spending less money on the perfumes than before the crisis. Recession in both continents hit the perfume business as well as the other industries. But interestingly enough, emerging markets such as Asia –Pacific, Latin America or Eastern Europe became the major motor of growth for the global fragrance market.
And those markets will become so called trendsetters in the perfume industry in the nearest
future. The tastes of London, Paris and New York will soon count for little.
What we smell like in the future is more likely to be dictated by the customers of Shanghai, Mumbai and Sao Paulo. BBC ‘sepisode of the Perfume Series, The Smell of the Future, looks into the future of the global perfume industry. The exploding new fragrance markets Brazil and Asia (China, India, Arabic countries) dictate the tempo now and the industry giants, such as Avon, are heavily investing into shifting their production / marketing to these markets' tastes and needs. The emerging regions are becoming increasingly important not only because of the trends that they are dictating to the world but also because they account for almost one-third of global sales, nearly doubling in value from 2002–2007 to an estimated $9.3 billion.
Probably the most interesting case among the countries we have just
mentioned above is Gulf region. Per capita consumption of perfumes in the
Middle East, estimated at $380 annually, is among the highest in the world,
according to a report by the Fragrance Foundation Arabia (FFA).
References:
a)http://www.ehow.com
b)http://www.articles.sun-sentinel.com
What we smell like in the future is more likely to be dictated by the customers of Shanghai, Mumbai and Sao Paulo. BBC ‘sepisode of the Perfume Series, The Smell of the Future, looks into the future of the global perfume industry. The exploding new fragrance markets Brazil and Asia (China, India, Arabic countries) dictate the tempo now and the industry giants, such as Avon, are heavily investing into shifting their production / marketing to these markets' tastes and needs. The emerging regions are becoming increasingly important not only because of the trends that they are dictating to the world but also because they account for almost one-third of global sales, nearly doubling in value from 2002–2007 to an estimated $9.3 billion.
References:
a)http://www.ehow.com
b)http://www.articles.sun-sentinel.com
