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Australian fragrances market controlled by Coty Australia

Press Release   •   Aug 27, 2013 10:18 BST

Female perfumes dominate the Australian fragrances market in terms of market share and have been forecast to continue this trend over the next five years, beating male and unisex categories.

Australian dollar versus the US dollar fell rapidly during the second half of 2008, and then grew rapidly during 2009. This has caused volatile growth in the Australian Fragrances market in US$ terms, even though volumes have grown at a relatively constant rate.

The high Australian dollar, coupled with the increased popularity of internet retailing, changed how consumers shopped for fragrances. They visited department stores to try fragrances which they had shortlisted, and subsequently visited online retailers of fragrances to purchase at a lower price.

Australia's population is aging, which is not a positive sign for the fragrances sector that thrives on the indulgent nature of young adult age groups. Additionally, the country is becoming a more multi-cultural society due to immigration, resulting in a varying mix in the demand for fragrance products.

Beauty and health are becoming increasingly important for Australian consumers as the fragrance sector evolves to take into account the pressures on consumer spending, and rising awareness of ethics and responsibility.

Coty Australia continues to lead the Australian fragrances sector. The company is present in premium fragrances with brands such as Joop! and celebrity lines including Jennifer Lopez and Sarah Jessica Parker. Coty also distributes Calvin Klein, Marc Jacobs and Davidoff fragrances in Australia.

Coty is recognised as a world leader in celebrity fragrances, and has constantly signed partnerships with A-list celebrities to endorse its fragrances.

The Australian fragrances sector is expected to record declining value sales over the coming years due to retailers' heavy emphasis on price promotion. Price discounting is sustainable and widely adopted due to the increase in stocking parallel imports.

Local retailers will need to compete with the efficiency of internet retailing, where fragrances are sourced from the lowest cost supplier, located anywhere in the world.

For more information on the Australian fragrances market, see the latest research: Australian Fragrances Market

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