Global Luxury Perfume Market 2017-2021
About Luxury Perfume
Perfume is a combination of various essential oils, fixatives, solvents, and aromatic compounds that contribute to a pleasant scent. Perfumes are more concentrated than any other kind of fragrance. They are thicker and expensive enough to be called luxury items. The composition of the perfume is constituted by around 15%-40% essence. The luxury perfume market involves all the high-end premium brands available for customers.
Technavio’s analysts forecast the global luxury perfume market to grow at a CAGR of 8.33% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global luxury perfume market for 2017-2021. To calculate the market size, the report considers the segmentation by end-user and distribution and geographical segmentation market.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Luxury Perfume Market 2017-2021
Technavio recognizes the following companies as the key players in the global luxury perfume market: Chanel, Estée Lauder, Guccio Gucci, Hermès, and Ralph Lauren
Other Prominent Vendors in the market are: Annick Goutal, Baccarat, Clive Christian, Dior, DKNY, JAR, and Jean Patou.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Product bundling. The high price of luxury perfumes is one of the key challenges for the market. Hence, vendors often use the strategy of product bundling to push products to customers who hold back their purchasing decision due to cost. Product bundling is basically a pricing strategy as per which two or more similar products are sold together for a substantially lower price. In case of perfumes, the bundles are usually made out of a deodorant and a perfume belonging to the same brand; the deodorant is for regular use, and the perfume is for special occasions. Another common bundling strategy is to pair men's and women's perfumes together. Such bundles make ideal gifts for couples, and hence, tend to have high sales. Bundling basically allows vendors to offer cost-effective deals to customers.”
According to the report, one of the major drivers for this market is Increase in demand from millennial population. Millennials (people in the age group of 18 to 32 years) are known to be extremely brand conscious. They do not mind paying higher prices for a particular product of their choice; however, they would not want to compromise on the quality of the product they opt for. Premium perfume brands come with the promise of higher quality available at different prices. The wide price range and variety of products in the perfume industry enable millennial to choose their perfumes according to their preferences.
Further, the report states that one of the major factors hindering the growth of this market is Competition from products which are available at affordable prices. The key challenge for the luxury perfume market is the high price that cuts down the market size considerably and also reduces the chances of repeat purchases. The premium perfumes suffer high competition from products that are available at affordable prices. The customers for luxury perfumes are usually from the upper classes; they are much lesser in number when compared to the masses and mid-range customers. Private labels are much more popular due to the economic price they set for perfumes.
Chanel, Estée Lauder, Guccio Gucci, Hermès, Ralph Lauren, Annick Goutal, Baccarat, Clive Christian, Dior, DKNY, JAR, Jean Patou
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