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Fragrances - UK - August 2016

Published By :

Mintel

Published Date : Aug 2016

Category :

Fragrances

No. of Pages : N/A

The fragrance and body spray category has shown a decline in value in 2015 which is expected to continue into 2016 as savvy shopping behaviours persist. However, high consumer interest in fragrances with niche characteristics, such as the use of natural ingredients and high concentrations of perfume extracts, could encourage spend, particularly in mainstream fine fragrance brands. In addition, with the in-store environment remaining a crucial stage in the purchase decision-making process, retailers can do more to encourage impulse buying.

Table of Content

Overview

What you need to know
Products covered in this report

Executive Summary

A category struggling to show growth
Figure 1: Best- and worst-case forecast for UK retail value sales of fragrances and body sprays, 2011-21
Financial situations have improved but could now be impacted by Brexit
Launch activity sees a decline
Figure 2: New product development in the fragrances category*, by launch type, January 2013-May 2016
Fragrance usage sees a rise
Figure 3: Usage of fragrances, June 2015 and June 2016
High interest in ingredients
Figure 4: Usage and interest in fragrances with niche characteristics, June 2016
High street retailers remain the most popular destination
Figure 5: Places of purchase of fragrances, June 2016
In-store environment is crucial in decision-making process
Figure 6: Factors influencing last fragrance purchased, June 2016
High interest in extending the life of fragrances
Figure 7: Interest in fragrance innovations, June 2016
Celebrity fragrances are no longer aspirational
0Figure 8: Associations of different fragrance types, June 2016
What we think

Issues and Insights

Savvy shopping behaviours continue to impact the value of the category
The facts
The implications
NPD is down despite interest in innovations being high
The facts
The implications
Attracting younger shoppers
The facts
The implications

The Market – What You Need to Know

Fragrances market in decline
Unisex fragrances continue to perform well
Retailers encourage shoppers to buy in-store
Young people are set to decline in population whilst older people rising
Financial situations improve but confidence could be impacted by Brexit
Online retailers and discounters rise in prominence

Market Size and Forecast

Savvy shopping driving down value of fragrances
Figure 9: UK retail value sales of fragrances and body sprays, at current and constant prices, 2011-21
Small but steady rise predicted long term
Figure 10: Best- and worst-case forecast for UK retail value sales of fragrances and body sprays, 2011-21
Forecast methodology

Segment Performance

Unisex fragrances continue to fare well
Figure 11: UK retail value sales of fragrances only, by sector, 2014-16 (est)
Mass market lacks the draw of fine fragrance
Men are getting more involved
Body sprays decline in value
Figure 12: UK retail value sales of body sprays, by sector, 2014-15

Channels to Market

Retailers offer in-store experiences to draw in shoppers
Figure 13: UK retail value sales of fragrances only, by outlet type, 2014-15
Making niche more affordable
Price and convenience drives body sprays sector
Figure 14: UK retail value sales of body sprays, by outlet type, 2014-15

Market Drivers

Population of young people set to decline
Figure 15: Trends in the age structure of the UK population, by gender, 2011-21
Optimise in-store environment for older people
Prestige sector boosted by improved financial situations
Figure 16: Trends in how respondents would describe their financial situation, May 2011 and May 2016
Rise of the online channel
Figure 17: Online retailers used to purchase BPC products, October 2015
Discounters driving savvy shopping behaviours
Figure 18: Selected discounters market size, 2009/10-2014/15
Focus on ingredients
Figure 19: Changes in haircare habits in the past 12 months, January 2016
Fragrance experimentation
Figure 20: Changes in usage of deodorants/antiperspirants in the last 12 months, April 2016

Key Players – What You Need to Know

Coty value sales show a decline
Overall launch activity is down
Aromatherapy and botanical claims see a rise
Companies target younger people
Advertising spend is up
Brands use social media to engage consumers

Market Share

Coty value takes a hit
Figure 21: Top manufacturer’s shares in fragrances only, 2014 and 2015
Brands struggle in bodysprays
Figure 22: Top manufacturer’s shares in body sprays only, years ending March, 2015 and 2016

Launch Activity and Innovation

Decline in launch activity
Figure 23: New product development in the fragrances category*, by launch type, January 2013-May 2016
Figure 24: Examples of Estée Lauder Classic Parfums relaunch, 2015
NPD seasonal peak
Figure 25: New product development in the fragrances category*, by quarter, January 2013-May 2016
Figure 26: Examples of fragrance launches in Q1, 2016
Unisex declines in focus
Figure 27: New product development in the fragrances category*, by sub-category, January 2013-May 2016
Figure 28: Examples of unisex fragrances, 2015
Aromatherapy claims see a rise
Figure 29: Top six fastest growing claims in the fragrances category* in 2015
Focusing on ingredients
Companies target Millennials
Figure 30: New product development in the fragrances category*, by top ultimate companies and other, 2015

Brand Communication and Promotion

Brands are spending more on advertising
Figure 31: Recorded above-the-line, online display and direct mail advertising expenditure on fragrances and body sprays, by media type, January 2013-May 2016
Burberry aims to innovate with advertising
Advertising focuses on Q4
Figure 32: Recorded above-the-line, online display and direct mail advertising expenditure on fragrances and body sprays, by quarter, January 2013-May 2016
P&G drives advertising in 2015
Figure 33: Recorded above-the-line, online display and direct mail advertising expenditure on fragrances and body sprays, by ultimate manufacturers, 2015
Coverage/methodology clarification

Brand Research

Brand map
Figure 34: Attitudes towards and usage of selected brands, June 2016
Key brand metrics
Figure 35: Key metrics for selected brands, June 2016
Brand attitudes: Gucci and Jo Malone are worth paying more for
Figure 36: Attitudes, by brand, June 2016
Brand personality: Ariana Grande Fragrances succeed in being fun
Figure 37: Brand personality – Macro image, June 2016
Elizabeth Arden is considered old-fashioned
Figure 38: Brand personality – Micro image, June 2016
Brand analysis
Gucci has an engaging brand image
Figure 39: User profile of Gucci, June 2016
Elizabeth Arden has broad usage despite being considered tired and boring
Figure 40: User profile of Elizabeth Arden, June 2016
YSL users are older
Figure 41: User profile of Yves Saint Laurent, June 2016
Jo Malone has a vibrant image
Figure 42: User profile of Jo Malone, June 2016
Lacoste appeals to men
Figure 43: User profile of Lacoste, June 2016
Ariana Grande Fragrances appeal to both genders
Figure 44: User profile of Ariana Grande Fragrances, June 2016
Christina Aguilera Fragrances are unappealing
Figure 45: User profile of Christina Aguilera Fragrances, June 2016
One Direction Fragrances appeal to young people
Figure 46: User profile of One Direction Fragrances, June 2016

The Consumer – What You Need to Know

Fragrance usage is up
Consumers show interest in ingredients
High street retailers remain most popular destination
In-store environment remains important for purchase decision
High interest in long-lasting fragrances
Celebrity fragrances score low on usage attributes

Usage of Fragrances

Fragrance usage is up
Figure 47: Usage of fragrances, June 2015 and June 2016
Scented toiletries
Figure 48: Usage of scented toiletries and other, June 2016
Usage declines in older men
Figure 49: Non-usage of fragrances amongst men, by age, June 2016

Usage of and Interest in Niche Fragrances

Interest in ingredients is high
Figure 50: Usage of and interest in fragrances with niche characteristics, June 2016
Older women pay attention to ingredients
Figure 51: Usage of fragrances with selected niche characteristics amongst women, by age, June 2016
Desire for exclusivity
Figure 52: Interest in exclusive fragrances, by region, June 2016
Personalisation could drive value

Purchase of Fragrances

Women are more likely to buy
Figure 53: Purchase of fragrances, by gender, June 2016
Older people are gifting
Figure 54: Purchase of fragrances for self and others, by age, June 2016
High street retailers remain most popular destination
Figure 55: Places of purchase of fragrances, June 2016
Young men driven by convenience …
Figure 56: Places of purchase of fragrances amongst 16-24s, by gender, June 2016

Fragrance Purchase Influencers

In-store environment is important
Figure 57: Factors influencing last fragrance purchased, June 2016
Harnessing the power of gifting
Men are more influenced by what they see
Figure 58: Selected factors influencing last fragrance purchased, by gender, June 2016

Interest in Fragrance Innovations

Consumers want fragrances to last longer
Figure 59: Interest in fragrance innovations, June 2016
Multi-use fragrances have high appeal
People want guidance

Fragrance Associations

Celebrity fragrances score low for usage attributes
Figure 60: Associations of different fragrance types, June 2016
Beauty brands are competitive against designer fragrances
Figure 61: Perceptions of different fragrance types, June 2016

Appendix – Data Sources, Abbreviations and Supporting Information

Abbreviations
Consumer research methodology
Forecast methodology
Brand research
Brand map
Correspondence analysis
Attitudes towards format types
Correspondence analysis methodology

Appendix – Key Players

Figure 62: New product development in the fragrances category, by top ultimate companies and other for 2015, 2014-15

List of Table

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