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Markets & trends

Fragrances: “The premium segment is gaining more ground,” Alessandra Tucci

Alessandra Tucci [1] is the founder and head of Perfumaria Paralela, a company focused on strategy and innovation in the perfumery segment, which has an exclusive license to represent French perfumery training institute Cinquième Sens in Brazil. She comments on the Brazilian fragrances market for Brazil Beauty News, and describes the next steps in its evolution.

Alessandra Tucci

Alessandra Tucci

Brazil Beauty News - What characterizes the Brazilian perfume market for now?

Alessandra Tucci - Brazil has been the largest market in terms of perfume consumption since 2010, according to Euromonitor. In 2013, according to Kantar, the market reached US$7 billion. This says a lot about the cultural relation Brazilians have with this category. It is an essential wellbeing item.

In the short term, due to its consumption potential and concentrated market (85% of the market share split between two players), Brazil presents itself as a promising alternative for the expansion of global brands. Local players have explored olfactory territories proven to be well-accepted by Brazilians, such as floral fruity and oriental gourmand scents. However, they also accelerate their entry into new less explored territories, such as O Boticário’s brand Make B. which is exploring woody notes in its new women’s fragrance Luna Natura, launched in 2014, a Cyprus and fresh fragrance that shows a great olfactory boldness.

At the same time, the attraction of global brands to the Brazilian market has matured, with the possibility of local manufacturing and consequent fiscal gains. Without a doubt, the future indicates growth in the premium segment — as soon as its distribution has become a reality.

Brazil Beauty News - What were the significant trends perfumes for 2014?

Alessandra Tucci - The premiumization movement is leveraged by more demanding consumers, such as those who have more purchasing power, those who are more informed, and those willing to pay more for quality products. This can be seen in market share gains with products like Lily Essence and Zaad by O Boticário, Eau de parfum by Make B. (O Boticário), and Una by Natura, and through the sophistication of the retail distribution channels with the arrival and expansion of the Sephora and The Beauty Box chains. This has all been reinforced by proper and differentiated olfactory strategies. With Make B., for example, the focus is on woody and floral scents with no notable presence of fruity notes. Natura’s Una employs a creative, elegant and comforting profile, almost like a second skin. Natura’s Amó highlights wood and spices, while Lily Essence concentrates on the territory of elegant florals, both of which are comforting and long-lasting. Just now Natura is launching Luna, climed to be the first Brazilian Chypre, a more daring olfactive territory.

The consensual scents, traditionally fresh and woody, continue to predominate in men’s fragrances, with an increase in woody scents that employ more sophisticated and warm structures.

Brazil Beauty News - What do you expect for 2015?

Alessandra Tucci - The continuity of the premiumization movement, with an urgent need to improve local fragrance expertise on both sides: consumers’ general culture of fragrance, and training of professionals to work in the segment.

At Paralela, we believe and invest in promoting innovation through knowledge. During the last two years, we hold more than 30 workshops and training sessions on various issues of the perfumery business, gathering over 340 students in São Paulo. During the last six months, we have performed a series of ‘in offices’ training sessions for companies in the fragrance sector. Within the next five years, our market will be more mature and will have a better expertise of perfumes.

Furthermore, the opening of the first two Aesop stores in Brazil, for example (the Australian retail company acquired by Natura) is another demonstration of the Market decentralization and sophistication.

International brands will evolve towards the strategy of producing famous brands locally, as demonstrated by the consolidation of the Coty and Avon distribution partnership, for instance. The market’s olfactory identity will become even closer to that of international markets, with the proliferation of consensual themes in both feminine and masculine perfumery, such as floral fruities, oriental gourmands and fruities, and more oriental woody and fougere woody masculine fragrances. As the competition is fierce, brands have little space to innovate, although consumers are ready to discover new scents alternatives. On the other hand, the market will become more diverse and will offer a greater variety of olfactory paths.

Brazil Beauty News - By the way, do you believe in the emergence of niche perfumery in Brazil?

Alessandra Tucci - With the proliferation of more information in the social networks and blogs, it is fantastic to watch how people’s passion of perfumes is leveraging their knowledge.

On the other hand, this fragrance category requires a lot of consumer knowledge. By definition, the niche market does not operate in large distribution networks, and does not make heavy investments in advertising. Niche brands values the quality of the product and service and the exclusivity that it represents. The market segment emphasizes the sale value rather than volume. Considering that Brazilian consumers are fond of big brands, we believe that niche perfumery will still need a few years to impact the local market, but this is certainly an opportunity for the future.

Interview by Kristel Milet

Footnotes

[1In addition to being a fragrance evaluator, Marketing Director and Fine Fragrance Business Unity Director for Latin America, Alessandra Tucci has worked with Master Perfumers in the national and international perfumery industry, and has held leading positions in Latin America in some of the most traditional fragrance houses in the world (IFF and Firmenich).

© 2014 - Brazil Beauty News - www.brazilbeautynews.com

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