Perfume market shrinks

The Brazilian bought less perfumes last year-the volume sold fell 3.8% in comparison to 2014. Manufacturers and retailers seek ways to encourage sales, ranging from splitting the payment in more plots and redesign of stores by a review of the portfolio, with more space for imported product more affordable price.
In nominal values, the industry had a slight increase in sales of 0.7%, reaching R$ 6.5 billion in 2015, according to data from research firm Kantar WorldPanel: consumer. The increase in the average ticket at 4.7%, to R$ 53, overshadowed the fall in the quantity sold. The volume purchased by consumers fell 3.7%, to just over four bottles per year. The number of visits to shops almost 4% backed down a little over three times.
"What we''re seeing mostly is a widespread fall and the escape of buyers due to the tight pocket. Within the basket of personal care and beauty, fragrance is a average disbursement category considered high, 53 R$. So, in crisis and inflation scenario, ends up being cut, "says Gabriela Fujita, an analyst with Kantar.
The Beauty Box, the network Group apothecary who sell products of various brands, lengthened the period for payment of 5 to 10 times without interest in 10 stores. The company evaluates the impact of the strategy to extend it to all 37 points of sale of the flag.
Although more than 70% of its portfolio is composed of imported products, the company considers that the devaluation of the real in 2015 had also a positive aspect. "The dollar variation has two main effects: increases the cost of imported goods, but also reduces the international travel and directs the spending for the domestic market," said Breno Salek, Director of marketing and sales of The Beauty Box. The possibility of payment account in favour of national salesman, he says.
Even before the recession, the general framework Beauty Box aims to reach 50 stores in 2016. "The falls in the prices of rents in shopping malls and the increased availability of outlets create an opportunity," says Salek.
Since last Christmas, Avon offers the payment in installments, on up to three times, for purchases of celebrity fragrances Beyoncé and David Beckham. The company, leader in the sector by volume, did the same in the sale of the perfumes of singer Jennifer Lopez. "With the installment, the product fits best in your pocket," says Vice President of marketing for Avon in Brazil, Ricardo sponsorship.
The direct selling company has sought to balance the portfolio between the imported and domestic brands, says sponsorship. The partnership with the French brand Coty, made in may 2014, has already yielded 15 releases, among them the perfume Beyoncé, R$ 149. The Alliance with the Greek brand Korres, in the second quarter of 2015, also brought a more sophisticated audience and is expanded nationally. At the same time, colonies and national products gain new versions and remain relevant. "It''s a mix between global and national products (such as Luiza Brunet lines and Ivete Sangalo) and regular price and promotional items.
With 18 brands and price ranges from $ 30 to almost 200 R$, Natura is one of the leaders in this market revenue. "We don''t see a transition to other brands or the fall of the purchase, despite the year of crisis. Strong brands have suffered so much and Perfumery, particularly female, as Luna and this flower, was one of the highlights of the sale last year, "says Denise Coutinho, Director of perfumery.
The Director of nature reminds us that despite the colony still waters represent a relevant part of the portfolio, are with sales practically stagnant, with the search of women by more sophisticated options-trend that remains. Consumers can even change my fragrance to save, but not necessarily the cheapest.
"Consumers had more access to brands and new channels in recent years and this trend is irreversible," says Henry Costa, product Director of Renner. The fragrance business of retailer has more than two decades and about 80% of the portfolio consists of international brands. The network instituted a policy of payment of up to ten times in 2012, which keeps as a long-term strategy.
Although negotiating with suppliers to minimize the effects of the tax increases and the high-dollar, high-price average wait Renner of perfumes above inflation this year. Renner provides 25 shops, all with usher in perfumery.
Dufry, retailer that operates at airports, redesigned stores and expanded the portfolio to strengthen the performance in the area of perfumery and cosmetics, the most important in sales. The general trend is to drop in sales in dollars in stores aimed at international travel. Sales at domestic airports, however, grow, because real prices are aligned to the local market and the passenger flow was less affected by the exchange rate variation, says Gustavo F, Director General of Dufry in Brazil.
Dufry added brands such as Kerástase, Vichy and La Roche Posay to its mix of products at the end of 2015. Months before, has accelerated the opening of shops of the American company of Mac makeup in your free shops. Due to the expansion of the portfolio, and the opening of new stores, believed to have a growth above the market place. "The trend is positive with the dollar stabilizing at lower levels, because the Brazilian begins to travel and spend more," says Fa.
The study of Kantar shows that sales of imported perfumes grew by 12.6% in volume in 2015, to 3.9 million units, but fell 11.8 percent in value, to 331.5 million R$, which demonstrates the demand for upscale, but at more affordable price ranges in a context more difficult this year. Average spending fell 21.7%, to R$ 85.29.
"There is a concern of international brands having products portfolio", says the Director of The Beauty Box. "Every brand has a pyramid and a planning that includes releases by station, or smaller volumes, on behalf of most affordable prices".