Marketers Adapt Strategies To Boost Duty-Free Perfume Sales

Duty-free sales of beauty products worldwide reached $19.8 billion in 2015, with fragrance accounting for 43.6 percent of total sales, according to Generation Research. In 2014, however, overall sales were $19.3 billion, with the fragrance segment contributing 48.7 percent of total sales, and in 2013, $17.5 billion, with fragrance accounting for 50.8 percent. Factors driving the decline in fragrance’s share of total sales included a decrease in disposable income in some markets and terrorism and security concerns. In order to deal with these factors and their adverse impact on the duty-free market, many companies are marketing products aimed at consumers who continue to travel. For example, Armani/Prive created Pivoine Suzhou, a fragrance designed for Chinese consumers. Lancome launched its Miracle perfume, which is also aimed at China’s consumers.