News from Latin America
Premium vs. Mass
Although mass accounts for the largest
share of the market in value terms, pre-
mium sales rose too, driven by new prod-
ucts as well as the development of better
distribution channels. In Brazil, 6% of
all premium fragrances are sold online,
led by LVMH. During the past five years
(2008-2013), premium sales grew 69%,
mass grew 68% and in whole of Latin
America, the growth was 65% and 56%,
respectively, according to Euromonitor.
Top international fragrances in Brazil are
Carolina Herrera 212 Vip, Azzaro pour
Homme and J´Adore Christian Dior.
“Premiumization” is taking hold in
Brazil, said Luciana Knobel, creative fra-
grance, Givaudan Brazil. She explained that
consumers are trading in their splashes to
experiment with new forms of perfuming,
such as deo cologne (equivalent to EDTs,
EDPs). With that, there is a great need for in-
formation. Big manufacturers are educating
their customers and explaining details about
their launches, concepts and content like
never before. This shift in consumer hab-
its is stronger in Brazil than in other Latin
American countries. In Mexico, for example,
the focus is much more on products for
young people and more affordable prices.
According to Mariana Gonçales, LATAM
marketing, Givaudan Fine Fragrance, the arrival of new prestige brands and investment
by Brazilian brands has led consumers to
demand better fragrances.
For international brands, one way to get
in on the fragrance frenzy is through beauty
cosmetic shops, such as Sephora, which offers international fragrances at prices that
are three times more expensive than other
countries, but give consumers the option
of installment payments. Or, international
brands may choose the direct sales route
similar to the deal recently struck between
Avon and Coty. Yet, according Gonçales, local brands are still expected to lead category
growth for the next several years. Local producers avoid many of Brazil’s high taxes and
have a good understanding of Brazil’s distribution channels
Exports
Brazil and Latin America were, historically, considered fine fragrances and consumer goods trend followers, especially
of European trends, according to Helen
Augusto LATAM fragrance communication, Givaudan. In the past decade, however, Brazil and other Latin American
countries emerged as a source of inspiration to the rest of the world, introducing
new ingredients in perfumery and expanding a colorful and vibrant culture, in
a warm and unpretentious way. The new
Millennium sparked an interest in our
roots, seeds, leaves and fruits—common
to us, but considered exotic by foreigners. Some of these ingredients, such as
açai, Brazil nuts, passion fruit, and the less
