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Mass Picks Up Slack from Premium’s Decline
By: Carrie Lennard, Euromonitor International
Posted: November 5, 2010, from the November 2010 issue of GCI Magazine.
page 5 of 5In addition, there were further obstacles for private label scents in 2010. In a European Court of Justice ruling in May 2010, L’Oréal won the right to prevent the sale of fragrances that mimicked the scent of its high-end perfumes, including Trésor and Miracle. This is likely to dissuade future private label launches hoping to imitate high-end brands.
Outlook: Mass to Drive Global Sales; Sluggish Growth to Persist
Despite market and segment issues yet to be resolved, fragrances will remain one of the largest beauty categories globally, and $5 billion will be added to its global value size by 2014. Latin America alone will account for around 56% of this growth. Premium fragrances will continue to be more negatively impacted beyond 2010 than mass scents (2% compound annual value growth is predicted for the former 2009–2014 compared to 4% for the latter), driven mainly by the preference for mass scents in emerging regions and ongoing reductions in spending in the category in the West.
Carrie Lennard is a research analyst at Euromonitor International.