Eau de profit: Expansion in high-margin products and increased spending has enabled industry profit recovery

The Perfume and Fragrance Stores industry has grown steadily over the past five years, propelled by growing economic conditions. Despite such strong overall performance, revenue growth has slowed in the later portion of the period due to increasing price competition between operators. Additionally, heightened e-commerce activity has resulted in waning mall foot traffic, putting additional downward pressure on industry revenue. Over the five years to 2023, IBISWorld estimates that industry revenue growth will slow. Although rising incomes will bolster demand for industry goods, a high level of market saturation and decreasing mall foot traffic will keep growth more subdued than during the previous five-year period...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Increased sales of niche and premium designer fragrances have boosted industry revenue
  • Online competition is less severe for perfume and fragrance stores than other retailers
  • Industry stores will be forced to use price cuts and marketing campaigns to drive in-store sales
  • Industry Report - Industry Key Buyers Chapter

    The Perfume and Fragrance Stores industry has a low level of market share concentration, with the top three companies accounting for 26.4% of the market. While this industry is dominated by large national scale beauty supply stores that sell lines of luxury cosmetic and beauty care products as well as high-price perfumes and fragrances, they are losing market share due to their growing online platforms. These stores often have strong relationships with suppliers and benefit from economies of scale. The vast majority of other retailers in the industry are independently owned operators with single store locations.Specialty perfume and fragrance stores have also become increasingly popular over the past decade. The...purchase to read more.

    Additional Insights for the Perfume & Fragrance Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Perfume & Fragrance Stores Industry are

  • Ability to control stock on hand
  • Production of goods currently favored by the market
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Consumer Confidence Index in the Perfume & Fragrance Stores industry impact industry performance..

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    Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Consumer Confidence Index
  • Number of adults aged 20 to 64
  • Percentage of services conducted online

  • Current Performance
  • Competitive landscape
  • Shifting demographics
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition heats up
  • Shifting focus
  • Table: Perfume & Fragrance Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Perfume & Fragrance Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Cosmetic & Beauty Products Manufacturing
  • Drug, Cosmetic & Toiletry Wholesaling
  • Soap & Cleaning Compound Manufacturing

  • Products & Services
  • Pillar fragrances
  • Flankers and limited editions
  • Niche fragrances
  • Celebrity fragrances
  • Chart: Perfume & Fragrance Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumer aged 45 to 54
  • Consumers aged 35 to 44
  • Consumers aged 55 to 64
  • Consumers aged 65 and older
  • Consumers aged 25 to 34
  • Consumers aged 24 and younger
  • Chart: Major Market Segmentation for the Perfume & Fragrance Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketing and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Perfume & Fragrance Stores

  • Basis of Competition
    External competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Perfume & Fragrance Stores Industry

  • Industry Globalization
    Moet Hennessy Louis Vuitton SE, Ulta Beauty Inc.,
  • Table: Moet Hennessy Louis Vuitton SE - financial performance
  • Table: Ulta Beauty Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Perfume & Fragrance Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Perfume & Fragrance Stores Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Eau De Cologne
  • A perfume originating from Cologne, Germany containing a mix of citrus oils including lemon, orange, tangerine, bergamot, lime, grapefruit and neroli.
  • Eau De Parfum
  • Scented perfume water that is stronger in smell than an eau de toilette but weaker than a perfume.
  • Eau De Toilette
  • A lightly scented, "weak" perfume used as a skin freshener, most commonly after bathing or showering.
  • Flanker
  • A "sequel" fragrance that is a variation on the scent of a pillar fragrance.
  • Fragrance Notes
  • A musical metaphor used to describe the gradual unfolding of a perfume's scent.
  • Pillar Fragrance
  • A standalone fragrance meant to hold up a perfume brand, typically used as the model for flanker or limited edition "spin-offs".
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Perfume & Fragrance Stores provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Perfume & Fragrance Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Perfume & Fragrance Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Perfume & Fragrance Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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