Perfume Industry

The Perfume Industry is generating over 35 billion USD representing a fourth of the global beauty industry 197 billion USD.

The perfume industry as well as its parent the beauty industry is divided into 3 main categories:

1. The Suppliers: Fragrance and raw material manufacturers, chemical and natural products suppliers, packaging and components manufacturers and finally industry services and consultants (including designers, press, PR, and logistics.Over 2000 recognized raw material, component manufacturers, Designers and services providers constitute the supplier's side of the industry.

2. The Marketers: The marketers are the beauty manufacturers their distributors and agents.Less than a dozen marketers worldwide represent 70% of the market but another 3000 smaller companies are the core of the remaining 30% market share.

3. The retailers: The global retail landscape is divided in two major distribution channels:

a)- Domestic market: Department stores, specialty stores, perfumery chain stores, independent perfumeries, apothecaries, pharmacies, SPA's, beauty stores, resort stores, Mass merchandisers, Food supermarket, drugstores, flea markets, and finally direct sales including door to door, TV shopping, internet and mailed catalogs.

(b)-Duty free market: Airport duty free operators, Airlines, cruise ship companies and facilitators, Diplomat and military stores.Sources [Perfume2000.com]

"Another channel in the grey area of our industry now called the secondary market is a network of wholesalers trading beauty products as a commodity regardless of origins and distribution rights."

United States of America is the world's second market after Europe for the beauty industry with 58 billion USD. The US beauty domestic market counts more than 50,000 Retail doors: ranging from the upper market (department stores) the independents (perfumeries, apothecaries and "mom-and-pop" gift stores that sell perfumes and cosmetics)., down to the mass market (Chains and Drugstore) including the discount market (Discount stores and chains, wholesalers, and flea markets).

THE BEAUTY INDUSTRY AT GLANCE The economic down turn is shaking the beauty industry. Previously in time of crisis and slow economy the beauty was less affected but not this time. During the first quarter of 2008 the revenue of the seven sisters of the beauty industry (the 7 major marketers) has felt in between 7% to 8 %.Department store traffic is down 12 % and Sears profit fell 62%. Daily news of the economic slowdown has made consumers wary of spending on extras. On the supplier’s side components prices are going sky high because the oil price explosion.

Author: Bernard Pommier - Sources: http://www.perfume2000.com