PORT WASHINGTON, N.Y. Despite the economic crunch, 1-in-5 consumers plan to buy fragrance as a gift this upcoming holiday season — a two-point increase from last season — according to a recent survey by the NPD Group.
"It will be interesting to see how all this translates into prestige department store fragrance sales, especially as we have seen a number of important new women's fragrances begin to roll out in stores and retailers also offering consumers attractive promotions," stated Karen Grant, VP and global industry analyst for The NPD Group.
According to its BeautyTrends report, during the first nine months of 2009, U.S. prestige fragrance generated a little more than $1.38 billion in sales, a decline of 11%, compared with Jan.-Sept. 2008. However, a few bright spots in the prestige fragrance market included fragrance juices (which excludes ancillary or gift set items) priced between $75 and $99.99 and juices priced over $100 that grew 2% and 4% in dollars, respectively.
Typically, the fourth quarter (October to December) is the biggest quarter for prestige fragrance.