Wednesday, December 21, 2011

Perfume Industry Is Facing A "crisis"? Perfume In Action - News - Business News

This, it seems a bit sensational. Everyone knows that to really promote the fashion boom, and fashion brand great development, not fashion itself, the real hero is the accessories, is Perfume. If the perfume is facing a crisis, would not indicate, fashion industry is about to enter the slow lane? Perfume industry is facing a "crisis" Fact, exaggerated the crisis, the challenge is really exist. Any development of the industry, go through the development, peak, decline in such a process, how to decline the challenge, look for transfer, to achieve new development, is the most important attitude. Perfume industry, is in the process. Perfume has a crisis According to NPD Group, the U.S. submitted a report, once created splendid fashion miracle perfume sales in the industry do not optimistic, since 2006, the U.S. market will gradually lower sales of fragrance products in 2006 were down 2-year percentage point, to 2.88 billion U.S. dollars, single product sales performance of t he diving phenomenon is more pronounced. Meanwhile, senior beauty industry analyst Karen? Grant said the data show that the situation of 2007 fragrance sales are still "difficult." 2008 data not yet published, but analysts for this year's report, apparently holding a more cautious attitude. Indeed, despite the perfume brand is still the core of many profitable products, but the fragrance market as a whole, has been showing declining trend in recent years, according to a from 2003 to 2006, three years, the dynamic analysis of industry data shows including big-name perfumes and fragrances and other products, including general sales showed an overall decreasing trend, the situation is gradually becoming less optimistic. The past 10 years, the perfume industry has drastically increased, to some extent have been booming. According to statistics, U.S. department stores in the perfume business value of 3% years, from 1997 to 28 billion U.S. dollars to 2.88 billion U.S. dollars in 2006. However, the overall number of department store perfume counters to reduce the 16 million to 54 million in 2006. Perfume product unit price up 10 years 13.50 U.S. dollars, up 53.13 U.S. dollars in 2006, 2007, walked on, today, Macy's department store perfume U.S. average price reached 49 dollars to 55 dollars range. Since 1997, perfume prices increased by 5% per year to 7%, consumption fell by 20%. The Macy's department store in the previous May and Federated Department Stores and mergers and acquisitions, he has closed 80 stores, while significantly reducing inventory, the inventory turnover rate from 2.5 times to 3.5 times, it also reflects the brutal competition in the market. Perfume should also integrate Perfume industry began to shrink the size, need corporate backing celebrity perfume, men's perfume trend is stronger than the female perfume, perfume sets beyond the single-product sales, the Christmas market, carnival reflects the industry is still not stable enough, in the light, can be drawn Conclusion: The scent industry power shortage, increasing competition in urgent need of consolidation. Perfume sales as the current poor, how to re-integrate the market has become an urgent problem to be solved. For example, Wal-Mart controls 25% of the U.S. mass consumer market beauty products, perfume sales have now begun to reduce the types and added to our catalog. In addition, the department stores are shrinking seasonal fragrance sales cycle, sales performance of products generally can only display 6 to 8 months. Mertes said: "The department stores started to introduce some of the smaller items, the current trend of low mass brand." Mortes, said: "Now the situation is regarded every store or brand revitalization hopes on foreign investment." He pointed out that in the fragrance market, Coty and Arden is the two best performing enterprises, while reducing operating costs, improve employee productivity on the other hand, for other co mpanies learn from. Mertes said: "The whole perfume industry are rapidly shrinking in size, reduce operating product range, while the celebrity fragrance springing up in recent years, plagued constantly, for them, to maintain the momentum of development, the most important thing is the support for consortia. " According to NPD Group's statistics, in 2007 the U.S. female fragrance sales fell 3 percent, to 1.91 billion U.S. dollars, while the male fragrance continues to show strong momentum, reaching 970 million U.S. dollars. However, the overall downturn in the market are still bright spots, female fruity fragrance sales rose 1 percent, male fruity fragrance sales growth by 2 percentage points. In the gift perfume, the perfume business in this area is the department store fragrance business has always been the main driving force, is also continued to show a long-term decline. NPD Group analyst Karen? Grant said: "We observed that many mall counter weak sales, operating effic iency is declining." In fact, the department store Cosmetic Perfume counter in the display type than a decade ago has significantly increased, compared with three years ago has been reduced, and the creation of sales also showed a reduced state. Christmas selling season for the importance of the perfume industry has been proved by the market. Two weeks before Christmas, the U.S. market fragrance sales will account for 20% of the total year, sales of more than two weeks in September, October and November combined. Grant believes that this trend actually reflects the instability of perfume industry, business methods are also problematic. Christmas shopping spree will greatly stimulate consumer demand.


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