Perfume market size in france - Essay Example

Perfume Market Size in France Globalization has facilitated the establishment of different types of business in countries across the world. This has helped nations on their paths to economic prosperity. As the disposable incomes of people have increased, certain industries pertaining to luxury items have experienced an increase in sales. An example in this case is the perfume market which has rapidly expanded all over the world. France holds a prominent position in the global market for perfumes accounting for 70 per cent of the market share.

In fact, French perfumes comprise 45 per cent of the world’s cosmetic sales (Cosmetics, 2011). According to an estimate 1,72,000 bottles of perfume are sold in France on a daily basis, out of which 72 per cent is bought by the women population and the rest 28 per cent are consumed by the men. Based on these figures, it can be estimated that France sells 62,780,000 bottles of perfume in a year. The Federation of Perfume Industries, France reported that the perfumes and the cosmetic industry of the country sold about 27 products per person every year.

Out of this, 89.5 per cent of the products were women’s commodities while 10.5 per cent were bought by the men (Cosmetics, 2011). The demand for perfumes in France is highly seasonal in nature. It generally reaches a high during festivals such as Christmas, Valentine’s Day and special occasions like Mother’s Day, Father’s Day etc. which boosts the sale of fragrances during these times. These festivals generate a high demand for premium French perfumes. According to the annual report of the Euromonitor International, the overall performance of the French perfume industry in 2010 had improved from that of the previous year.

(However, it was not as good as the industry’s performance in the years prior to the global financial crisis). The performance of the premium section of French perfumes was reported to be better than the general segment of fragrances. Consumers were found to have restricted their budgets in other areas to afford such luxury items (Fragrances in France, 2011). The French perfume industry is a fiercely competitive one which is dominated by the presence of big brands. In 2010, the combined share of market values of the five leading French perfume companies amounted to only 36 per cent, which denoted the highly fragmented nature of the country’s fragrance market.

The highest sales figure was recorded by Parfums Christian Dior SA which also accounted for 9 per cent of share in the market value of the industry in 2010. The second and third highest figures were reported by Chanel SA and Guerlain SA, which were slightly less than those of the market leader (Fragrances in France, 2011). During the future, France’s perfume industry is expected to witness a marginal positive growth in its sales. The uncertainty in the economy is expected to impact the fragrance market due to which sales will not soar.

However, the forecasters have also made an interesting observation. The market segment catering to men’s cosmetic products is expected to experience a stronger growth compared to that in women’s perfumes (Fragrances in France, 2011). References 1. Cosmetics (2011), retrieved on December 16, 2011 from http://www.cosmeticsdesign.com/feature/news-all-months 2. Fragrances in France (2011), Beauty and Personal Care, Euromonitor International, retrieved on December 16, 2011 from http://www.euromonitor.

com/fragrances-in-france/report