FRAGRANCES IN PAKISTAN

Euromonitor International
May 2018
FRAGRANCES IN PAKISTAN Passport I

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Transition From Traditional Substitutes To Branded Fragrances Will Drive Growth ................. 1
Wide Availability of Low-priced Duplicates Will Remain A Threat To Brands ........................... 1
Modern Retailing To Play A Vital Role in the Growth of Fragrances......................................... 1
Competitive Landscape ................................................................................................................ 2
International Brands Dominate Premium Fragrances in 2017 .................................................. 2
Rasasi Perfumes Industry Llc Leads Mass Women Fragrances With Its Blue Brand ............... 2
Category Data .............................................................................................................................. 2
Table 1 Sales of Fragrances by Category: Value 2012-2017 .................................... 2
Table 2 Sales of Fragrances by Category: % Value Growth 2012-2017 ................... 3
Table 3 NBO Company Shares of Fragrances: % Value 2013-2017 ........................ 3
Table 4 LBN Brand Shares of Fragrances: % Value 2014-2017 ............................... 4
Table 5 LBN Brand Shares of Premium Men's Fragrances: % Value 2014-
2017 ............................................................................................................. 5
Table 6 LBN Brand Shares of Premium Women's Fragrances: % Value 2014-
2017 ............................................................................................................. 5
Table 7 Forecast Sales of Fragrances by Category: Value 2017-2022 ..................... 6
Table 8 Forecast Sales of Fragrances by Category: % Value Growth 2017-
2022 ............................................................................................................. 6

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FRAGRANCES IN PAKISTAN Passport 1

FRAGRANCES IN PAKISTAN
HEADLINES
 Fragrances registers current value growth of 12% to reach PKR0.9 billion in 2017
 Rising focus on personal hygiene helps drive sales in 2017
 Average unit price of both premium men's fragrances and mass women's fragrances
increases by 5% in current terms in 2017
 Rasasi Perfumes leads fragrances in a very fragmented competitive environment
 Fragrances is expected to record a CAGR of 5% at constant 2017 prices over the forecast
period, reaching PKR1.1 billion in 2022

PROSPECTS

Transition From Traditional Substitutes To Branded Fragrances Will

Drive Growth
Consumers in Pakistan are moving towards branded alternatives, a trend that was also seen
in fragrances. Traditionally, Attar (a non-alcoholic alternative) was widely used, especially in
religious consumer segments. However, with changing lifestyles and consumption patterns,
consumers began to use fragrances for social gatherings while Attar is still used for religious
ceremonies. Fashion house Junaid Jamshed and herbal beauty specialist Saeed Ghani
launched non-alcoholic fragrances to cater to the needs of religious consumers. This move from
traditional substitutes to branded alternatives is expected to drive growth in the forecast period.
Increasing awareness and disposable incomes also led to a shift in consumer preferences, as
consumers are now showing a willingness to spend on personal grooming and upgrade from
deodorants to fragrances.

Wide Availability of Low-priced Duplicates Will Remain A Threat To

Brands
The infiltration of imported fragrances through grey channels and the wide availability of
counterfeits are the most challenging concerns for players. Counterfeits are commonly available
at all distribution channels and since they are significantly lower in price, consumers buy them.
Only very high-income consumers are particular about using original products. Average
consumers buy duplicates and consider it a smart decision as the fragrance is very similar to the
original and at a significantly lower price. Moreover, the average consumer cannot differentiate
between the original and counterfeit product and hence the latter is commonly used. Several
manufacturers increased their share by offering both declared and undeclared duplicate
fragrances.

Modern Retailing To Play A Vital Role in the Growth of Fragrances

The increasing contribution of modern retailing gave consumers access to a variety of
products that were once inaccessible. Modern retailing therefore altered consumer preferences
in multiple categories including fragrances. Hypermarkets and supermarkets stock a large range
of imported as well as local products, which provided consumers with awareness of fragrances
and informed them that they are not only for the consumption of higher-income groups.
However, this is more accurate for mass fragrances since premium fragrances are still

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FRAGRANCES IN PAKISTAN Passport 2

consumed by higher-income classes only. Pricing, promotion, positioning and sales channels for
premium and mass fragrances are distinct and there is clear demarcation in terms of strategies
for both types of fragrances. Mass fragrances are available in most channels, including modern
and some traditional channels, while premium fragrances are available mainly through
company-owned outlets, department stores, beauty specialist retailers and modern retail outlets
such as hypermarkets. Premium fragrances are priced significantly higher and availability is
much lower compared to mass fragrances.

COMPETITIVE LANDSCAPE

International Brands Dominate Premium Fragrances in 2017

Premium fragrances in Pakistan are consumed by the educated, high-income consumer
segment that has wide exposure to the world through travelling, peer groups and the internet.
Moreover, they are socially aware and want to be considered trendy and rich by their peers.
They therefore invest in international brands that are world-renowned in order to associate
themselves with the brand name. Since local brands are not considered premium even if their
price matches that of brands, they were unable to switch consumption in favour of their
products, resulting in domination by foreign brands.

Rasasi Perfumes Industry Llc Leads Mass Women Fragrances With Its
Blue Brand
Blue by Rasasi Perfumes Industry LLC, known for its special Arabic fragrance, maintained a
strong presence among both mass men’s and women’s brands. It is preferred by consumers
who are looking for a light, elegant fragrance for social gatherings. Increasing penetration into
modern retailers such as departmental stores, hypermarkets and supermarkets aided the
distribution of Blue over the review period. The company benefits from the growth of online
retailing, which helped it to penetrate the smaller towns and cities and strengthen its position
among mass consumers.

CATEGORY DATA
Table 1 Sales of Fragrances by Category: Value 2012-2017

PKR mn
2012 2013 2014 2015 2016 2017

Premium Fragrances 55.8 67.2 79.2 92.0 104.1 117.9

- Premium Men's 27.6 33.1 38.8 45.1 50.5 56.8
Fragrances
- Premium Women's 28.2 34.1 40.4 46.9 53.6 61.1
Fragrances
- Premium Unisex - - - - - -
Fragrances
- Premium Fragrance - - - - - -
Sets/Kits
Mass Fragrances 392.9 461.3 530.4 606.1 673.9 751.5
- Mass Men's Fragrances 91.1 105.5 120.2 136.4 150.3 166.2
- Mass Women's Fragrances 301.8 355.8 410.2 469.7 523.6 585.4
- Mass Unisex Fragrances - - - - - -
- Mass Fragrance Sets/ - - - - - -

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Kits
Fragrances 448.7 528.5 609.6 698.0 778.0 869.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Fragrances by Category: % Value Growth 2012-2017

% current value growth

2016/17 2012-17 CAGR 2012/17 Total

Premium Fragrances 13.2 16.2 111.5

- Premium Men's Fragrances 12.5 15.5 105.9
- Premium Women's Fragrances 14.0 16.7 116.9
- Premium Unisex Fragrances - - -
- Premium Fragrance Sets/Kits - - -
Mass Fragrances 11.5 13.8 91.3
- Mass Men's Fragrances 10.5 12.8 82.4
- Mass Women's Fragrances 11.8 14.2 93.9
- Mass Unisex Fragrances - - -
- Mass Fragrance Sets/Kits - - -
Fragrances 11.8 14.1 93.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 NBO Company Shares of Fragrances: % Value 2013-2017

% retail value rsp

Company 2013 2014 2015 2016 2017

Rasasi Perfumes 6.1 6.6 6.7 7.4 7.8

Industry LLC
Oriflame Cosmetics 3.8 3.3 3.3 1.9 6.7
Pakistan (Pvt) Ltd
Parfum Royal Mirage Dist 3.8 3.7 3.9 4.7 4.8
Revlon Pakistan 8.6 5.4 4.4 3.8 3.5
adidas Group 0.7 0.8 1.0 1.1 1.2
Parfum Ramba France 0.8 0.8 0.9 0.9 0.9
Calvin Klein Inc 0.5 0.5 0.5 0.5 0.6
Gianni Versace SpA 1.3 0.7 0.6 0.6 0.6
Alfred Dunhill Ltd 0.8 0.6 0.6 0.5 0.4
Hugo Boss AG 0.3 0.3 0.3 0.3 0.4
Kering Group 0.2 0.2 0.3 0.3 0.3
Chanel SA 0.2 0.2 0.3 0.3 0.3
Coty Inc 0.2 0.2 0.2 0.3 0.3
Procter & Gamble 0.2 0.2 0.2 0.3 0.3
Pakistan (Pvt) Ltd
L'Oréal Groupe 0.2 0.2 0.2 0.2 0.2
Marquis Parfum Paris 7.7 1.7 0.8 0.4 0.2
Xuelie Cosmetics Co Ltd 0.7 0.6 0.5 0.3 0.2
Lacoste SA 0.1 0.2 0.2 0.2 0.2
Dolce & Gabbana Srl 0.1 0.1 0.1 0.1 0.1
Antonio Puig SA de CV 1.0 0.4 0.2 0.1 0.1
Others 62.8 73.2 74.9 75.9 70.9
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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FRAGRANCES IN PAKISTAN Passport 4

Table 4 LBN Brand Shares of Fragrances: % Value 2014-2017

% retail value rsp

Brand (GBO) Company (NBO) 2014 2015 2016 2017

Blue Rasasi Perfumes 6.6 6.7 7.4 7.8

Industry LLC
Oriflame (Oriflame Oriflame Cosmetics 3.3 3.3 1.9 6.7
Cosmetics SA) Pakistan (Pvt) Ltd
Royal Mirage Parfum Royal Mirage Dist 3.7 3.9 4.7 4.8
Charlie (Revlon Inc) Revlon Pakistan 5.4 4.4 3.8 3.5
adidas Deep Energy adidas Group 0.8 1.0 1.1 1.2
Cologne (Coty Inc)
Ramba Parfum Ramba France 0.8 0.9 0.9 0.9
Calvin Klein for Calvin Klein Inc 0.5 0.5 0.5 0.6
Men (Coty Inc)
Versace Woman Gianni Versace SpA 0.5 0.5 0.5 0.6
(Euroitalia Srl)
Dunhill Desire Blue Alfred Dunhill Ltd 0.6 0.6 0.5 0.4
(Inter Parfums Inc)
Hugo Boss Hugo Hugo Boss AG - - 0.3 0.4
Element (Coty Inc)
Gucci (Coty Inc) Kering Group - - 0.3 0.3
Chanel N°5 Chanel SA 0.2 0.3 0.3 0.3
Davidoff Coty Inc 0.2 0.2 0.3 0.3
Boss Intense (Coty Procter & Gamble - - 0.3 0.3
Inc) Pakistan (Pvt) Ltd
Lancôme L'Oréal Groupe 0.2 0.2 0.2 0.2
Marquis Marquis Parfum Paris 1.7 0.8 0.4 0.2
Lonkoon's Authority Xuelie Cosmetics Co Ltd 0.6 0.5 0.3 0.2
For Men (Guangzhou
Xuelei Cosmetics Co
Ltd)
Lacoste Touch of Lacoste SA - - 0.2 0.2
Pink (Coty Inc)
Dolce & Gabbana The Dolce & Gabbana Srl - - 0.1 0.1
One (Shiseido Co Ltd)
Puig Quorum for Men Antonio Puig SA de CV 0.4 0.2 0.1 0.1
(Puig SL)
Versace Men Gianni Versace SpA 0.2 0.1 0.1 -
(Euroitalia Srl)
Hugo Boss Hugo Hugo Boss AG 0.3 0.3 - -
Element (Procter &
Gamble Co, The)
Gucci (Procter & Kering Group 0.2 0.3 - -
Gamble Co, The)
Boss Intense Procter & Gamble 0.2 0.2 - -
(Procter & Gamble Pakistan (Pvt) Ltd
Co, The)
Lacoste Touch of Lacoste SA 0.2 0.2 - -
Pink (Procter &
Gamble Co, The)
Dunhill Desire Blue Alfred Dunhill Ltd - - - -
(Procter & Gamble
Co, The)
Puig Quorum for Men Antonio Puig SA de CV - - - -
(Puig Beauty &
Fashion Group SL)

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Others Others 73.3 74.9 75.9 70.9

Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 LBN Brand Shares of Premium Men's Fragrances: % Value 2014-2017

% retail value rsp

Brand (GBO) Company (NBO) 2014 2015 2016 2017

Calvin Klein for Calvin Klein Inc 8.0 7.9 8.3 8.5
Men (Coty Inc)
Dunhill Desire Blue Alfred Dunhill Ltd 9.3 8.7 7.6 6.7
(Inter Parfums Inc)
Hugo Boss Hugo Hugo Boss AG - - 5.2 5.4
Element (Coty Inc)
Davidoff Coty Inc 3.5 3.8 4.1 4.4
Dolce & Gabbana The Dolce & Gabbana Srl - - 1.4 1.7
One (Shiseido Co Ltd)
Dune (LVMH Moët Christian Dior SA 0.9 0.9 0.9 0.9
Hennessy Louis
Vuitton SA)
Versace Men Gianni Versace SpA 3.0 1.7 1.0 -
(Euroitalia Srl)
Hugo Boss Hugo Hugo Boss AG 4.8 4.9 - -
Element (Procter &
Gamble Co, The)
Dolce & Gabbana The Dolce & Gabbana Srl 1.2 1.3 - -
One (Procter &
Gamble Co, The)
Dunhill Desire Blue Alfred Dunhill Ltd - - - -
(Procter & Gamble
Co, The)
Others Others 69.3 70.8 71.5 72.4
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 LBN Brand Shares of Premium Women's Fragrances: % Value 2014-2017

% retail value rsp

Brand (GBO) Company (NBO) 2014 2015 2016 2017

Versace Woman Gianni Versace SpA 8.0 7.5 7.7 7.9

(Euroitalia Srl)
Gucci (Coty Inc) Kering Group - - 4.1 4.3
Chanel N°5 Chanel SA 3.7 3.9 4.1 4.2
Boss Intense (Coty Procter & Gamble - - 3.7 3.9
Inc) Pakistan (Pvt) Ltd
Lancôme L'Oréal Groupe 2.8 3.0 3.2 3.4
Lacoste Touch of Lacoste SA - - 2.3 2.2
Pink (Coty Inc)
Gucci (Procter & Kering Group 3.7 3.9 - -
Gamble Co, The)
Boss Intense Procter & Gamble 3.0 3.5 - -
(Procter & Gamble Pakistan (Pvt) Ltd
Co, The)

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Lacoste Touch of Lacoste SA 2.5 2.4 - -

Pink (Procter &
Gamble Co, The)
Others Others 76.3 75.8 74.9 74.1
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 Forecast Sales of Fragrances by Category: Value 2017-2022

PKR mn
2017 2018 2019 2020 2021 2022

Premium Fragrances 117.9 126.7 135.7 144.8 154.0 163.3

- Premium Men's 56.8 60.7 64.7 68.8 72.8 76.9
Fragrances
- Premium Women's 61.1 66.0 71.0 76.0 81.2 86.5
Fragrances
- Premium Unisex - - - - - -
Fragrances
- Premium Fragrance - - - - - -
Sets/Kits
Mass Fragrances 751.5 793.1 833.3 872.1 909.6 947.3
- Mass Men's Fragrances 166.2 174.4 182.4 190.3 198.1 206.5
- Mass Women's Fragrances 585.4 618.7 650.9 681.8 711.5 740.8
- Mass Unisex Fragrances - - - - - -
- Mass Fragrance Sets/ - - - - - -
Kits
Fragrances 869.4 919.8 969.0 1,016.9 1,063.6 1,110.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 8 Forecast Sales of Fragrances by Category: % Value Growth 2017-2022

% constant value growth

2017/2018 2017-22 CAGR 2017/22 Total

Premium Fragrances 7.5 6.7 38.5

- Premium Men's Fragrances 6.9 6.2 35.3
- Premium Women's Fragrances 8.0 7.2 41.6
- Premium Unisex Fragrances - - -
- Premium Fragrance Sets/Kits - - -
Mass Fragrances 5.5 4.7 26.1
- Mass Men's Fragrances 4.9 4.4 24.3
- Mass Women's Fragrances 5.7 4.8 26.6
- Mass Unisex Fragrances - - -
- Mass Fragrance Sets/Kits - - -
Fragrances 5.8 5.0 27.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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