The Fragance Market and Perfume Industry - 792 Words

The billion pound fragrances market in the United Kingdom is highly competitive and is always adapting to their environment. Despite the recession, the fragrances market have managed to boost their market value and thrive in the slowly recovering economy. To stay in business, it is imperative for marketing managers in fragrances to acknowledge issues in their macro and micro environments, such as the current economic state, the behaviour of consumers and governmental issues revolving around the perfume industry. In spite of the slow recovery from the 2008 recession, market value of fragrances have increased 25.6% over the last 5 years (Key Note, 2013, pp. 15). The buying power of consumers and household disposable income is strengthening in the UK, even though unemployment rates and inflation are rising. Many would assume the financial condition of the macro-environment would result in consumers cutting spending on nonessential goods like perfumes. Surprisingly, buyers of the in dustry’s microenvironment view fragrances as necessary essentials and premium fragrances are driving the market value upwards. The increased disposable income has aided in the success of premium fragrance sales due to patrons’ willingness to indulge in expensive perfumes than switch to cheaper products. Marketers must understand that fragrances are relatively in-elastic demand to their consumers and in order to compete in the marketplace through the recovering economy, brands need to advertiseShow MoreRelatedEssay on Abercrombie and Fitch, Strategic Managment2096 Words   |  9 Pageshas been denominated as one of the most important brands in the retailing business. ABERCROMBIE AND FITCH The company Abercrombie Fitch (AF) is a retailer of informal clothes and accessories. These accessories include including cologne and perfume for men and women. AF has its operations based in more than 300 stores that at the same time incorporate abercrombie stores for children; Hollister (Southern Californian style) and the new brand Gilly Hicks for underwear (Abercrombie and FitchRead MoreMarketing essay on Chanel4291 Words   |  18 PagesJanuary 2013 Markets, Marketing and Strategy Report MMS Report, 1 January 2013 Markets Marketing and Strategy Report Executiv summary : This report provides an analysis and evaluation of Chanel’s marketing strategies and of its place in the Luxury market today. Methods of analysis include three theorical models that help to understand the complexity of Chanel business environment and its main resources. Those three models are: PESTEL, SWOT and 5 Porter’s forces. In thisRead MoreEssay on Cosmetics Industry9878 Words   |  40 Pages4842 Group Case 2 Retail Specialty Cosmetics Industry Analysis March 19, 2012 TABLE OF CONTENTS Industry Type Degree of Industry Concentration Opportunities and Threats Opportunities Threats Past and Projected Market Growth Rate Competitive Analysis New Entrants Substitutes Rivalry within the Industry Suppliers Buyers Driving Forces Analysis Industry Key Success Factors Financial Analysis