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United Kingdom - Fragrances 0183 - 0703 - 2010
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INDUSTRY PROFILE
Fragrances in
the United Kingdom
Reference Code: 0183-0703
Publication Date: September 2011
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EXECUTIVE SUMMARY
United Kingdom - Fragrances 0183 - 0703 - 2010
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EXECUTIVE SUMMARY
Market value
The United Kingdom fragrances market grew by 7% in 2010 to reach a value of $1,759.6 million.
Market value forecast
In 2015, the United Kingdom fragrances market is forecast to have a value of $2,396.1 million, an
increase of 36.2% since 2010.
Market volume
The United Kingdom fragrances market grew by 6% in 2010 to reach a volume of 44.3 million units.
Market volume forecast
In 2015, the United Kingdom fragrances market is forecast to have a volume of 56.4 million units, an
increase of 27.3% since 2010.
Market segmentation I
Female fragrances is the largest segment of the fragrances market in the United Kingdom, accounting for
63.4% of the market's total value.
Market segmentation II
The United Kingdom accounts for 10.9% of the European fragrances market value.
Market share
Procter & Gamble Company, The is the leading player in the United Kingdom fragrances market,
generating a 21.1% share of the market's value.
Market rivalry
The UK fragrances market is fairly concentrated, with the top three players accounting for 43.7% of the
market value.
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CONTENTS
United Kingdom - Fragrances 0183 - 0703 - 2010
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TABLE OF CONTENTS
EXECUTIVE SUMMARY 2
MARKET OVERVIEW 7
Market definition 7
Research highlights 8
Market analysis 9
MARKET VALUE 10
MARKET VOLUME 11
MARKET SEGMENTATION I 12
MARKET SEGMENTATION II 13
MARKET SHARE 14
FIVE FORCES ANALYSIS 15
Summary 15
Buyer power 17
Supplier power 18
New entrants 19
Substitutes 20
Rivalry 21
LEADING COMPANIES 22
Procter & Gamble Company, The 22
Coty Inc 27
Estée Lauder Companies Inc., The 29
MARKET DISTRIBUTION 33
MARKET FORECASTS 34
Market value forecast 34
Market volume forecast 35
MACROECONOMIC INDICATORS 36
APPENDIX 38
Methodology 38
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CONTENTS
United Kingdom - Fragrances 0183 - 0703 - 2010
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Industry associations 39
Related Datamonitor research 39
Disclaimer 41
ABOUT DATAMONITOR 42
Premium Reports 42
Summary Reports 42
Datamonitor consulting 42
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CONTENTS
United Kingdom - Fragrances 0183 - 0703 - 2010
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LIST OF TABLES
Table 1: United Kingdom fragrances market value: $ million, 2006–10 10
Table 2: United Kingdom fragrances market volume: million units, 2006–10 11
Table 3: United Kingdom fragrances market segmentation I:% share, by value, 2010 12
Table 4: United Kingdom fragrances market segmentation II: % share, by value, 2010 13
Table 5: United Kingdom fragrances market share: % share, by value, 2010 14
Table 6: Procter & Gamble Company, The: key facts 22
Table 7: Procter & Gamble Company, The: key financials ($) 24
Table 8: Procter & Gamble Company, The: key financial ratios 25
Table 9: Coty Inc: key facts 27
Table 10: Estée Lauder Companies Inc., The: key facts 29
Table 11: Estée Lauder Companies Inc., The: key financials ($) 31
Table 12: Estée Lauder Companies Inc., The: key financial ratios 31
Table 13: United Kingdom fragrances market distribution: % share, by value, 2010 33
Table 14: United Kingdom fragrances market value forecast: $ million, 2010–15 34
Table 15: United Kingdom fragrances market volume forecast: million units, 2010–15 35
Table 16: United Kingdom size of population (million), 2006–10 36
Table 17: United Kingdom gdp (constant 2000 prices, $ billion), 2006–10 36
Table 18: United Kingdom gdp (current prices, $ billion), 2006–10 36
Table 19: United Kingdom inflation, 2006–10 37
Table 20: United Kingdom consumer price index (absolute), 2006–10 37
Table 21: United Kingdom exchange rate, 2006–10 37
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CONTENTS
United Kingdom - Fragrances 0183 - 0703 - 2010
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LIST OF FIGURES
Figure 1: United Kingdom fragrances market value: $ million, 2006–10 10
Figure 2: United Kingdom fragrances market volume: million units, 2006–10 11
Figure 3: United Kingdom fragrances market segmentation I:% share, by value, 2010 12
Figure 4: United Kingdom fragrances market segmentation II: % share, by value, 2010 13
Figure 5: United Kingdom fragrances market share: % share, by value, 2010 14
Figure 6: Forces driving competition in the fragrances market in the United Kingdom, 2010 15
Figure 7: Drivers of buyer power in the fragrances market in the United Kingdom, 2010 17
Figure 8: Drivers of supplier power in the fragrances market in the United Kingdom, 2010 18
Figure 9: Factors influencing the likelihood of new entrants in the fragrances market in the United
Kingdom, 2010 19
Figure 10: Factors influencing the threat of substitutes in the fragrances market in the United
Kingdom, 2010 20
Figure 11: Drivers of degree of rivalry in the fragrances market in the United Kingdom, 2010 21
Figure 12: Procter & Gamble Company, The: revenues & profitability 25
Figure 13: Procter & Gamble Company, The: assets & liabilities 26
Figure 14: Estée Lauder Companies Inc., The: revenues & profitability 32
Figure 15: Estée Lauder Companies Inc., The: assets & liabilities 32
Figure 16: United Kingdom fragrances market distribution: % share, by value, 2010 33
Figure 17: United Kingdom fragrances market value forecast: $ million, 2010–15 34
Figure 18: United Kingdom fragrances market volume forecast: million units, 2010–15 35
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MARKET OVERVIEW
United Kingdom - Fragrances 0183 - 0703 - 2010
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MARKET OVERVIEW
Market definition
The fragrances market consists of the retail sale of female fragrances, male fragrances and unisex
fragrances. The market is valued according to retail selling price (RSP) and includes any applicable taxes.
Any currency conversions used in the compilation of this report have been calculated using 2010 annual
average exchange rates.
For the purpose of this report Europe comprises Belgium, the Czech Republic, Denmark, France,
Germany, Hungary, Italy, the Netherlands, Norway, Poland, Romania, Russia, Spain, Sweden, Ukraine,
Turkey, Ireland, Greece, Switzerland, Austria, Portugal, Finland, Croatia, Bulgaria, Lithuania, Latvia,
Slovenia, Slovakia, Estonia and the United Kingdom.
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MARKET OVERVIEW
United Kingdom - Fragrances 0183 - 0703 - 2010
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Research highlights
The UK fragrances market generated total revenues of $1.8 billion in 2010, representing a compound
annual growth rate (CAGR) of 8.7% for the period spanning 2006-2010.
Female fragrances sales proved the most lucrative for the UK fragrances market in 2010, generating total
revenues of $1.1 billion, equivalent to 63.4% of the market's overall value.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 6.4% for the five-
year period 2010-2015, which is expected to lead the market to a value of $2.4 billion by the end of 2015.
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MARKET OVERVIEW
United Kingdom - Fragrances 0183 - 0703 - 2010
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Market analysis
The UK fragrances market grew at a strong rate during the period 2006-2010, as a result of strong sales
growth in the female fragrances category. The overall market growth is expected to decelerate in the
forthcoming five years.
The UK fragrances market generated total revenues of $1.8 billion in 2010, representing a compound
annual growth rate (CAGR) of 8.7% for the period spanning 2006-2010. In comparison, the French and
German markets grew with CAGRs of 1.8% and 0.3% respectively, over the same period, to reach
respective values of $2.8 billion and $2.4 billion in 2010.
Market consumption volumes increased with a CAGR of 7.1% between 2006 and 2010, to reach a total of
44.3 million units in 2010. The market's volume is expected to rise to 56.4 million units by the end of
2015, representing a CAGR of 4.9% for the 2010-2015 period.
Female fragrances sales proved the most lucrative for the UK fragrances market in 2010, generating total
revenues of $1.1 billion, equivalent to 63.4% of the market's overall value. In comparison, sales of male
fragrances generated revenues of $605.4 million in 2010, equating to 34.4% of the market's aggregate
revenues.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 6.4% for the five-
year period 2010-2015, which is expected to lead the market to a value of $2.4 billion by the end of 2015.
Comparatively, the French and German markets will grow with CAGRs of 1.7% and 0.2% respectively,
over the same period, to reach respective values of $3 billion and $2.4 billion in 2015.
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MARKET VALUE
United Kingdom - Fragrances 0183 - 0703 - 2010
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MARKET VALUE
The United Kingdom fragrances market grew by 7% in 2010 to reach a value of $1,759.6 million.
The compound annual growth rate of the market in the period 2006–10 was 8.7%.
Table 1: United Kingdom fragrances market value: $ million, 2006–10
Year $ million £ million € million % Growth
2006 1,262.2 817.3 951.6
2007 1,422.8 921.3 1,072.6 12.7%
2008 1,532.6 992.4 1,155.4 7.7%
2009 1,644.4 1,064.8 1,239.7 7.3%
2010 1,759.6 1,139.4 1,326.6 7.0%
CAGR: 2006–10 8.7%
Source: Datamonitor D A T A M O N I T O R
Figure 1: United Kingdom fragrances market value: $ million, 2006–10
Source: Datamonitor D A T A M O N I T O R
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MARKET VOLUME
United Kingdom - Fragrances 0183 - 0703 - 2010
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MARKET VOLUME
The United Kingdom fragrances market grew by 6% in 2010 to reach a volume of 44.3 million units.
The compound annual growth rate of the market in the period 2006–10 was 7.1%.
Table 2: United Kingdom fragrances market volume: million units, 2006–10
Year million units % Growth
2006 33.7
2007 36.3 7.7%
2008 39.3 8.3%
2009 41.8 6.4%
2010 44.3 6.0%
CAGR: 2006–10 7.1%
Source: Datamonitor D A T A M O N I T O R
Figure 2: United Kingdom fragrances market volume: million units, 2006–10
Source: Datamonitor D A T A M O N I T O R
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MARKET SEGMENTATION I
United Kingdom - Fragrances 0183 - 0703 - 2010
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MARKET SEGMENTATION I
Female fragrances is the largest segment of the fragrances market in the United Kingdom, accounting for
63.4% of the market's total value.
The male fragrances segment accounts for a further 34.4% of the market.
Table 3: United Kingdom fragrances market segmentation I:% share, by value, 2010
Category % Share
Female fragrances 63.4%
Male fragrances 34.4%
Unisex fragrances 2.2%
Total 100%
Source: Datamonitor D A T A M O N I T O R
Figure 3: United Kingdom fragrances market segmentation I:% share, by value, 2010
Source: Datamonitor D A T A M O N I T O R
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MARKET SEGMENTATION II
United Kingdom - Fragrances 0183 - 0703 - 2010
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MARKET SEGMENTATION II
The United Kingdom accounts for 10.9% of the European fragrances market value.
France accounts for a further 17.9% of the European market.
Table 4: United Kingdom fragrances market segmentation II: % share, by value, 2010
Category % Share
France 17.9%
Germany 15.2%
United Kingdom 10.9%
Italy 8.9%
Rest of Europe 47.2%
Total 100%
Source: Datamonitor D A T A M O N I T O R
Figure 4: United Kingdom fragrances market segmentation II: % share, by value, 2010
Source: Datamonitor D A T A M O N I T O R
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MARKET SHARE
United Kingdom - Fragrances 0183 - 0703 - 2010
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MARKET SHARE
Procter & Gamble Company, The is the leading player in the United Kingdom fragrances market,
generating a 21.1% share of the market's value.
Coty Inc accounts for a further 14.2% of the market.
Table 5: United Kingdom fragrances market share: % share, by value, 2010
Company % Share
Procter & Gamble Company, The 21.1%
Coty Inc 14.2%
Estée Lauder Companies Inc., The 8.4%
Others 56.3%
Total 100%
Source: Datamonitor D A T A M O N I T O R
Figure 5: United Kingdom fragrances market share: % share, by value, 2010
Source: Datamonitor D A T A M O N I T O R
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FIVE FORCES ANALYSIS
United Kingdom - Fragrances 0183 - 0703 - 2010
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FIVE FORCES ANALYSIS
The fragrances market will be analyzed taking personal care products manufacturers and large fashion
houses as players. The key buyers will be taken as retailers, and manufacturers of chemicals, packaging,
and manufacturing equipment as the key suppliers.
Summary
Figure 6: Forces driving competition in the fragrances market in the United Kingdom, 2010
Source: Datamonitor D A T A M O N I T O R
The UK fragrances market is fairly concentrated, with the top three players accounting for 43.7% of the
market value.
Department stores are the main buyers in the UK fragrances market and often occupy a strong position in
the supply chain, which allows them to negotiate favorable contracts with manufacturers, thereby
enhancing buyer power. However, major manufacturers tend to advertise in order to build brand loyalty.
This reduces buyer power, as most retailers must stock popular brands in order to maintain their own
sales volumes, with little option for alternatives. The raw materials (such as chemicals) used in
manufacturing of fragrances should be of high quality and for some ingredients there are no substitutes
available, which increases supplier power. A small number of brands, some globally recognized, have a
strong position in this market. The major companies are large firms whose economies of scale allow them
to compete more effectively on price, and invest in their own business and therefore small scale
companies entering the market may find it difficult to compete. Many of the leading players are either
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FIVE FORCES ANALYSIS
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manufacturers of personal care products or large fashion houses. Such business diversification of the
market players eases competitive pressure in any given market, which is assessed as moderate.
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FIVE FORCES ANALYSIS
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Buyer power
Figure 7: Drivers of buyer power in the fragrances market in the United Kingdom, 2010
Source: Datamonitor D A T A M O N I T O R
The major buyers within the UK fragrances market are considered to be department stores (incl. duty-free
shops) (about 35.5% of the total distribution) who offer fragrances products to their customers.
Advertising plays a crucial role in this market as strong brand and building customer loyalty may provide
the buyers and manufacturers with brand loyal customers. This factor becomes even more important in
the market where end users have no switching costs and do tend to switch brands. In order to boost
sales, marketing companies often use celebrity endorsements for promoting brands as the majority of
people are swayed by a celebrity's image. This reduces buyer power, as most retailers must stock
popular brands in order to maintain their own sales volumes, with little option for alternatives. However,
retailers often occupy a strong position in the supply chain, which allows them to negotiate favorable
contracts with manufacturers, thereby enhancing buyer power. Direct selling is also possible in the
fragrances market: for example, manufacturer Avon avoids the conventional retail distribution network, by
using a direct sales force. Overall, buyer power in the fragrances market is assessed as moderate.
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FIVE FORCES ANALYSIS
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Supplier power
Figure 8: Drivers of supplier power in the fragrances market in the United Kingdom, 2010
Source: Datamonitor D A T A M O N I T O R
Suppliers in the fragrances market include suppliers and manufacturers of raw materials such as
chemicals, packaging, and manufacturing equipment. The quality of raw materials is of core importance in
the fragrances market. Chemicals used for manufacturing consumer products must be of a suitable
standard, although for some ingredients there are no substitutes, a factor which increases supplier power.
Suppliers are often small in scale compared to the large manufacturers, lacking the price negotiating
power and consequently their power is reduced. However, this factor is counterbalanced by the fact that
chemical producers generate revenues from a wide variety of sources, reducing their dependence on
fragrance product manufacturers. Overall the supplier power is assessed as moderate.
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FIVE FORCES ANALYSIS
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New entrants
Figure 9: Factors influencing the likelihood of new entrants in the fragrances market in the
United Kingdom, 2010
Source: Datamonitor D A T A M O N I T O R
The fragrances products market is primarily regulated by the International Fragrance Association (IFRA)
which is mainly responsible for regulating the worldwide legislatives trends and keeping a check on health
problems related to fragrance usage such as allergies or asthma. Additionally, the EU regulations
pertaining to cosmetic products require companies to notify about cosmetics containing nanomaterials.
The regulations also forbid companies from using substances in cosmetics that are carcinogenic,
mutagenic, or toxic for reproduction. Nevertheless fragrance formulas are treated as "trade secrets" and
manufactures are not obliged to reveal them to anyone, including regulatory agencies. . The European
Commission announced its decision on Feb, 2011to ban the fragrance material musk xylene under the
new European Chemicals Legislation REACH because of its potential effects on the environment. The UK
fragrances product market has presence of large players such as Procter & Gamble and Coty. These
companies have developed and acquired extensive product portfolios, and built brands with large
marketing and advertising budgets. A small scale company would find it difficult to enter this market as it
will have to compete with the established brands. Additionally, substantial funds are needed to start up a
business in this market, with capital required for investment in production, distribution, and also
advertising which is crucial to succeed in this market. One of the methods of establishing its brand is
celebrity endorsements but it can become very costly for new players. Overall, the threat of new entrants
with respect to the fragrance market is moderate.
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FIVE FORCES ANALYSIS
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Substitutes
Figure 10: Factors influencing the threat of substitutes in the fragrances market in the United
Kingdom, 2010
Source: Datamonitor D A T A M O N I T O R
Fragrances, perfumes in particular, used to be considered luxury products. However, this trend is
changing with these products being sold at prices affordable for the mass public. Many personal hygiene
products such as soaps, body wash products and even talcum powders to a certain extent provide a
fragrance, and those products are often used by manufacturers to differentiate their product lines. The low
price of such products compared to that of fine fragrances also increases the threat of substitute. Overall,
the threat of substitute is moderate.
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FIVE FORCES ANALYSIS
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Rivalry
Figure 11: Drivers of degree of rivalry in the fragrances market in the United Kingdom, 2010
Source: Datamonitor D A T A M O N I T O R
The UK fragrances products market is fairly concentrated, with the top three players accounting for 43.7%
of the market value. Many of the leading players are either large manufacturers of personal care products
or large fashion houses. Such business diversification of the market players eases competitive pressure
in any given market. Fixed costs are high in this market, as most companies own large production
facilities. Therefore the need to divest such assets on exiting the UK market constitutes an exit barrier.
Such factors tend to enhance rivalry. Most of these companies are geographically diversified which
weakens rivalry to some extent. Overall, rivalry in the fragrances market is moderate.
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LEADING COMPANIES
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LEADING COMPANIES
Procter & Gamble Company, The
Table 6: Procter & Gamble Company, The: key facts
Head office: 1 Procter & Gamble Plaza, Cincinnati, Ohio 45202, USA
Telephone: 1 513 983 1100
Fax: 1 513 983 4381
Local office: The Heights, Brooklands, Weybridge, Surrey, KT13 0XP, GBR
Telephone: 44 1932 896 000
Fax: 44 1932 896 200
Website: www.pg.com
Financial year-end: June
Ticker: PG
Stock exchange: NYSE
Source: company website D A T A M O N I T O R
Procter & Gamble Company (P&G) is engaged in the manufacture and marketing of consumer products.
The company markets more than 300 brands in over 180 countries spanning the Americas, Europe, the
Middle East and Africa (EMEA), and Asian region. It is headquartered in Cincinnati, Ohio and employs
about 129,000 people.
P&G sells its products through mass merchandisers, grocery stores, membership club stores, drug stores
and in high-frequency stores. P&G is organized into two global business units (GBUs): beauty & grooming
and household care.
The GBUs identify common consumer needs, develop new products and build its brands. The business
units comprising the GBUs are aggregated into six reportable segments: beauty; grooming; health care;
snacks and pet care; fabric care and home care; and baby care and family care. The beauty and
grooming comprises of the beauty, grooming and healthcare businesses while household care GBU
consists of snacks and pet care; fabric care and home care; baby care and family care businesses.
The beauty segment includes cosmetics, deodorants, hair care, skin care, prestige fragrances and
personal cleansing. The hair care sub-segment consists of conditioner, hair colorants, salon products,
shampoo and styling agents. The key brands offered by the segment include Head & Shoulders, Olay,
Pantene, Head and Shoulders, Aussie, Fekkai, Nioxin and Wella. The key brands offered in the
deodorant category include Old Spice, Secret and Gillette. Personal cleansing products include brands
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LEADING COMPANIES
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such as Camay, Gillette, Ivory, Olay, Old spice, and Zest in the body wash category. The key facial care
brand marketed by the company includes Olay.
The grooming segment comprises blades and razors, face and shave preparation products (such as
shaving cream), electric hair removal devices and small household appliances. The key brands marketed
by the grooming segment include Braun, Fusion, Gillette and Mach3. The electric hair removal devices
and small home appliances are marketed under the Braun brand.
The healthcare segment includes feminine care, gastrointestinal, incontinence, rapid diagnostics,
respiratory, toothbrush, toothpaste, water filtration and other oral care. The oral care products are
marketed worldwide under the brands Always, Crest and Oral-B. In December 2008, Panasonic Electric
Works entered into a supply agreement with P&G to supply its Palsonic electric toothbrush, which P&G
introduced in the US and European markets during late 2009 under its own brand name.
The snacks and pet care segment markets its products under the brands lams and Pringles. In the snacks
business, the company sells potato chips through its Pringles brand.
The fabric care and home care segment offers a wide range of fabric care products including laundry
cleaning products and fabric conditioners; and home care products, including dish care, surface cleaners
and air fresheners; and batteries. The segment markets its products under Ace, Ariel, Dawn, Downy,
Duracell, Gain, Tide and Febreze brands.
The baby care and family care segment offers baby wipes,, diapers, tissues, paper towels and paper
tissues under the following brands: Bounty, Charmin and Pampers. The company’s family care business
primarily operates in North America.
The global operations group consists of the market development organization (MDO). The MDO
comprises retail customer, trade channel and country-specific teams. . It is organized along five
geographic regions: North America, Western Europe, Central & Eastern Europe/Middle East/Africa
(CEEMEA), Latin America and Asia (comprises Japan, Greater China and ASEAN/Australia/India/Korea
(AAIK)). The developing markets include CEEMEA, Latin America, AAIK and Greater China while the
developed markets are comprised of North America, Western Europe and Japan.
The global business services (GBS) provides technology, processes and standard data tools to support
the operations of GBUs and the MDO. The GBS organization is responsible for providing world-class
solutions at a low cost and with minimal capital investment..
Corporate functions provide company-level strategy and portfolio analysis, corporate accounting,
treasury, external relations, governance, human resources and legal, as well as other centralized
functional support.
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LEADING COMPANIES
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In the US, the company operates through 36 manufacturing facilities located in 22 different states or
territories. The company operates other 102 manufacturing facilities in 41 other countries. Beauty
products are manufactured at 39 of these manufacturing facilities, grooming products at 17; fabric care
and home care products at 52; baby care and family care products at 31; snacks and pet care products at
11 and health care products at 35.
On March 2011, Procter and Gamble signed a joint venture with Teva, a producer of generic drugs to
create a new company dealing in over-the-counter drug.
Key Metrics
The company recorded revenues of $82.6 billion in the financial year (FY) ended June 2011, an increase
of 4.6% over FY2010. The net profit of the company was $11.8 billion in FY2011, a decrease of 7.4%
over FY2010.
During FY2011, the beauty division recorded revenues of $20.2 billion, an increase of 3.4% over 2010.
International accounted for 63.1% of the total revenues in FY2011. Revenues from International reached
$52.1 billion in FY2011, an increase of 6.5% over FY2010.
Table 7: Procter & Gamble Company, The: key financials ($)
$ million 2007 2008 2009 2010 2011
Revenues 72,441.0 79,257.0 76,694.0 78,938.0 82,559.0
Net income (loss) 10,340.0 12,075.0 13,436.0 12,736.0 11,797.0
Total assets 138,014.0 143,992.0 134,833.0 128,172.0 138,354.0
Total liabilities 71,254.0 74,208.0 71,451.0 66,733.0 70,353.0
Employees 138,000 138,000 135,000 127,000 129,000
Source: company filings D A T A M O N I T O R
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LEADING COMPANIES
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Table 8: Procter & Gamble Company, The: key financial ratios
Ratio 2007 2008 2009 2010 2011
Profit margin 14.3% 15.2% 17.5% 16.1% 14.3%
Revenue growth 6.2% 9.4% (3.2%) 2.9% 4.6%
Asset growth 1.7% 4.3% (6.4%) (4.9%) 7.9%
Liabilities growth (2.1%) 4.1% (3.7%) (6.6%) 5.4%
Debt/asset ratio 51.6% 51.5% 53.0% 52.1% 50.8%
Return on assets 7.6% 8.6% 9.6% 9.7% 8.9%
Revenue per employee $524,935 $574,326 $568,104 $621,559 $639,992
Profit per employee $74,928 $87,500 $99,526 $100,283 $91,450
Source: company filings D A T A M O N I T O R
Figure 12: Procter & Gamble Company, The: revenues & profitability
Source: company filings D A T A M O N I T O R
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LEADING COMPANIES
United Kingdom - Fragrances 0183 - 0703 - 2010
© Datamonitor. This profile is a licensed product and is not to be photocopied Page 26
Figure 13: Procter & Gamble Company, The: assets & liabilities
Source: company filings D A T A M O N I T O R
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LEADING COMPANIES
United Kingdom - Fragrances 0183 - 0703 - 2010
© Datamonitor. This profile is a licensed product and is not to be photocopied Page 27
Coty Inc
Table 9: Coty Inc: key facts
Head office: Two Park Avenue 17th Floor, New York City, New York 10016, USA
Telephone: 1 212 479 4300
Fax: 1 866 336 6064
Local office: Coty UK Ltd., 5 St. George's Road, St. George's House, Wimbledon, London SW19 4DR, GBR
Telephone: 44 208 971 1300
Fax: 44 208 971 1399
Website: www.coty.com
Financial year-end: June
Source: company website D A T A M O N I T O R
Coty is a privately held company engaged in manufacturing and marketing of fragrances, color cosmetics,
toiletries, skincare, sun care and personal care products. The company operates in more than 30
countries and distributes its products to around 90 countries worldwide. It is headquartered in New York
City, New York and employs more than 8,500 people.
The company is comprised of two divisions: Coty Prestige and Coty Beauty.
Coty Prestige is engaged in manufacturing and marketing of lifestyle and fashionable fragrances products
under the brands Baby Phat, Balcenciaga, Calvin Klein, Cerruti, Chloe, Chopard, Davidoff, Jennifer
Lopez, Jette Joop, Jil Sander, Joop!, Karl Lagerfeld, Kenneth Cole, L.A.M.B. fragrance Gwen Stefani,
Lancaster, Marc Jacobs, Nautica, Nikos, Phat Farm, Sarah Jessica Parker, Vera Wang and Vivienne
Westwood.
In January 2009, JL Morison India Ltd entered into an exclusive distribution agreement with Coty Prestige
Travel Retail and Export, a division of Coty Geneva, Switzerland, for distribution of various deodorant /
fragrance products under brands Playboy, Tonino Lamborghini and Pierre Cardin in India. In Switzerland,
the company launched Davidoff Cool Water Man and Davidoff Cool Water Woman fragrance brands in
April 2010.
Coty Beauty manufactures and markets fragrances, toiletries, color cosmetics, skin care, sun care and
personal care products. These products are marketed under the brands such as Adidas, Aspen, Astor,
Celine Dion, Chupa Chups, David & Victoria Beckham, Desperate Housewives, Esprit, ex’cla.ma’tion,
Halle Berry, Isabella Rossellini, Jovan, Kate Moss, Kylie Minogue, Miss Sixty, Miss Sporty, Pierre Cardin,
Playboy, Rimmel, Shania Twain, Stetson, and Vanilla Fields.
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LEADING COMPANIES
United Kingdom - Fragrances 0183 - 0703 - 2010
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The company has research and development centers at New Jersey and Monaco; and operates
manufacturing plants in Spain, France, Monaco, North Carolina and the UK. The company’s distribution
channels include department stores, specialty retailer, upscale perfumeries, pharmacies, mass market
retailers and duty free shops in airport and cities.
In January 2011, Coty Inc. acquired a majority stake in Chinese skin-care company TJoy Holdings Ltd to
expand its presence in China.
Key Metrics
Coty recorded revenues of $3.6 billion in the financial year (FY) ended June 2010.
The fragrances product category accounted for 62% of the total revenues during FY2010. Revenues from
fragrances product category reached $2.2 billion in FY2009.
Europe, Coty’s largest geographical market, accounted for 57% of the total revenues during FY2010.
Revenues from Europe reached $2.1 billion in FY2010.
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LEADING COMPANIES
United Kingdom - Fragrances 0183 - 0703 - 2010
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Estée Lauder Companies Inc., The
Table 10: Estée Lauder Companies Inc., The: key facts
Head office: 767 Fifth Avenue New York City, New York 10153, USA
Telephone: 1 212 572 4200
Fax: 1 212 572 3941
Website: www.elcompanies.com
Financial year-end: June
Ticker: EL
Stock exchange: New York
Source: company website D A T A M O N I T O R
The Estee Lauder Companies (Estee Lauder) manufactures and markets makeup, skin care, fragrances
and hair care products in over 150 countries spanning the Americas, Europe, the Middle East, Africa and
Asia Pacific. It has wholly-owned or majority-owned offices in 40 countries and territories. Since its
foundation in 1946, the company has been controlled by the Lauder family. The members of the Lauder
family have approximately 88% of the outstanding voting power in the company's common stock. It is
headquartered in New York City, the US and employs around 31,200 people.
Estee Lauder sells its products through different channels like department stores, specialty retailers,
perfumeries, freestanding stores, direct response TV, travel retail, internet, and pharmacies, prestige hair
salons and spas. The company also sells through freestanding company-owned stores and spas, Estee
Lauder's authorized web sites, stores on cruise ships and direct marketing through television.
Some of the best known brands of the company include Estee Lauder, Aramis, Clinique, Lab Series,
Origins, M.A.C, Bobbi Brown, La Mer, Aveda, Jo Malone, Bumble and Bumble, Darphin and Ojon. The
company is also the global licensee of the Kiton, Tommy Hilfiger, Donna Karan, Michael Kors, Sean John,
Missoni, Tom Ford, Mustang, American Beauty, Flirt!, Good skin, grassroots, and Daisy Fuentes.
Estee Lauder primarily operates through five product categories: makeup, skin care, fragrance, hair care
and other.
The makeup products category offers products such as lipsticks, mascaras, foundations, eyeshadows,
nail polishes and powders. Many of the products are offered in an extensive array of shades and colors.
The company also sells related items such as compacts, brushes and other makeup tools. The
company’s key brands for its makeup products include Estee lauder, Clinique, Origins, MAC, Bobbi
Brown, Aveda, Darphin, American Beauty and Flirt.
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LEADING COMPANIES
United Kingdom - Fragrances 0183 - 0703 - 2010
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Estee Lauder's skin care products category markets products for women and men including moisturizers,
creams, lotions, cleansers, sun screens and self-tanning products. The key skin care brands marketed by
the company in Malaysia include Estee Lauder and Clinique. In 2008, Estee Lauder acquired Ojon
Corporation, which markets and sells Ojon hair care and skin care products.
The fragrance products category offers a variety of fragrances for women and men. The fragrances are
sold in various forms including perfume sprays and colognes, as well as lotions, powders, creams and
soaps that are based on a particular fragrance. The company’s fragrances category includes brands like
Beautiful, Beyond Paradise, Celadon and Intuition among others.
The hair care products category offers products primarily used in salons and freestanding retail
stores;these include hair color and styling products, shampoos, conditioners and finishing sprays.
The other products category includes the sales of ancillary products and services other than skin care,
makeup, fragrance, and hair care products.
The company’s key skincare products brands include Lab Series, La Mer, Jo Malone, Darphin, Ojon, and
American Beauty among others.
In 2009 the company acquired Applied Genetics Incorporated Dermatics (AGI), a manufacturer of
cosmetics ingredients.
In April, 2011 Estee Lauder Companies Inc. announced that its Aramis and Designer Fragrances Division
will assume the exclusive worldwide license for the fragrance and grooming business of the Ermenegildo
Zegna Group, a one-hundred year old, billion-dollar Milan-based men's luxury clothing and accessory
business. The license is effective July 1st 2011.
Key Metrics
The company recorded revenues of $8.8 billion in the financial year (FY) ended June 2011, an increase of
13% over FY2010. The net profit of the company was $700.8 million in FY2011, an increase of 46.5%
over FY2010.
The fragrance division recorded revenues of $1.2 billion in FY2011, an increase of 8.7% over 2010.
Europe, the Middle East & Africa accounted for 37% of the total revenues in FY2011. Revenues from
Europe, the Middle East & Africa reached $3.3 billion in FY2011, an increase of 13.9% over FY2010.
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LEADING COMPANIES
United Kingdom - Fragrances 0183 - 0703 - 2010
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Table 11: Estée Lauder Companies Inc., The: key financials ($)
$ million 2007 2008 2009 2010 2011
Revenues 7,037.5 7,910.8 7,323.8 7,795.8 8,810.0
Net income (loss) 449.2 473.8 218.4 478.3 700.8
Total assets 4,125.7 5,011.2 5,176.6 5,335.6 6,273.9
Total liabilities 2,905.4 3,331.4 3,512.6 3,370.2 3,626.9
Employees 28,500 32,000 31,300 31,200 32,300
Source: company filings D A T A M O N I T O R
Table 12: Estée Lauder Companies Inc., The: key financial ratios
Ratio 2007 2008 2009 2010 2011
Profit margin 6.4% 6.0% 3.0% 6.1% 8.0%
Revenue growth 8.9% 12.4% (7.4%) 6.4% 13.0%
Asset growth 9.0% 21.5% 3.3% 3.1% 17.6%
Liabilities growth 36.0% 14.7% 5.4% (4.1%) 7.6%
Debt/asset ratio 70.4% 66.5% 67.9% 63.2% 57.8%
Return on assets 11.4% 10.4% 4.3% 9.1% 12.1%
Revenue per employee $246,930 $247,213 $233,987 $249,865 $272,755
Profit per employee $15,761 $14,806 $6,978 $15,330 $21,697
Source: company filings D A T A M O N I T O R
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LEADING COMPANIES
United Kingdom - Fragrances 0183 - 0703 - 2010
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Figure 14: Estée Lauder Companies Inc., The: revenues & profitability
Source: company filings D A T A M O N I T O R
Figure 15: Estée Lauder Companies Inc., The: assets & liabilities
Source: company filings D A T A M O N I T O R
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DISTRIBUTION
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MARKET DISTRIBUTION
Department Stores (incl. Duty-Free Shops) form the leading distribution channel in the United Kingdom
fragrances market, accounting for a 35.5% share of the total market's value.
Specialist Retailers accounts for a further 27.7% of the market.
Table 13: United Kingdom fragrances market distribution: % share, by value, 2010
Channel % Share
Department Stores (incl. Duty-Free Shops) 35.5%
Specialist Retailers 27.7%
Pharmacies / drugstores 22.8%
Others 14.0%
Total 100%
Source: Datamonitor D A T A M O N I T O R
Figure 16: United Kingdom fragrances market distribution: % share, by value, 2010
Source: Datamonitor D A T A M O N I T O R
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MARKET FORECASTS
United Kingdom - Fragrances 0183 - 0703 - 2010
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MARKET FORECASTS
Market value forecast
In 2015, the United Kingdom fragrances market is forecast to have a value of $2,396.1 million, an
increase of 36.2% since 2010.
The compound annual growth rate of the market in the period 2010–15 is predicted to be 6.4%.
Table 14: United Kingdom fragrances market value forecast: $ million, 2010–15
Year $ million £ million € million % Growth
2010 1,759.6 1,139.4 1,326.6 7.0%
2011 1,876.0 1,214.8 1,414.4 6.6%
2012 1,997.3 1,293.3 1,505.7 6.5%
2013 2,124.2 1,375.5 1,601.4 6.4%
2014 2,257.5 1,461.8 1,701.9 6.3%
2015 2,396.1 1,551.6 1,806.5 6.1%
CAGR: 2010–15 6.4%
Source: Datamonitor D A T A M O N I T O R
Figure 17: United Kingdom fragrances market value forecast: $ million, 2010–15
Source: Datamonitor D A T A M O N I T O R
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MARKET FORECASTS
United Kingdom - Fragrances 0183 - 0703 - 2010
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Market volume forecast
In 2015, the United Kingdom fragrances market is forecast to have a volume of 56.4 million units, an
increase of 27.3% since 2010.
The compound annual growth rate of the market in the period 2010–15 is predicted to be 4.9%.
Table 15: United Kingdom fragrances market volume forecast: million units, 2010–15
Year million units % Growth
2010 44.3 6.0%
2011 46.7 5.4%
2012 49.1 5.1%
2013 51.5 4.9%
2014 53.9 4.7%
2015 56.4 4.6%
CAGR: 2010–15 4.9%
Source: Datamonitor D A T A M O N I T O R
Figure 18: United Kingdom fragrances market volume forecast: million units, 2010–15
Source: Datamonitor D A T A M O N I T O R
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MACROECONOMIC INDICATORS
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MACROECONOMIC INDICATORS
Table 16: United Kingdom size of population (million), 2006–10
Year Population (million) % Growth
2006 60.6 0.6%
2007 61.0 0.7%
2008 61.4 0.7%
2009 61.8 0.6%
2010 62.1 0.6%
Source: Datamonitor D A T A M O N I T O R
Table 17: United Kingdom gdp (constant 2000 prices, $ billion), 2006–10
Year Constant 2000 Prices, $ billion % Growth
2006 1,721.6 2.8%
2007 1,767.8 2.7%
2008 1,766.6 (0.1%)
2009 1,680.5 (4.9%)
2010 1,701.5 1.3%
Source: Datamonitor D A T A M O N I T O R
Table 18: United Kingdom gdp (current prices, $ billion), 2006–10
Year Current Prices, $ billion % Growth
2006 2,433.6 7.4%
2007 2,831.1 16.3%
2008 2,714.4 (4.1%)
2009 2,227.1 (18.0%)
2010 2,302.6 3.4%
Source: Datamonitor D A T A M O N I T O R
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MACROECONOMIC INDICATORS
United Kingdom - Fragrances 0183 - 0703 - 2010
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Table 19: United Kingdom inflation, 2006–10
Year Inflation Rate (%)
2006 3.2%
2007 4.3%
2008 3.6%
2009 2.2%
2010 3.3%
Source: Datamonitor D A T A M O N I T O R
Table 20: United Kingdom consumer price index (absolute), 2006–10
Year Consumer Price Index (2000 = 100)
2006 116.3
2007 121.3
2008 125.7
2009 128.4
2010 132.7
Source: Datamonitor D A T A M O N I T O R
Table 21: United Kingdom exchange rate, 2006–10
Year Exchange rate ($/£) Exchange rate (€/£)
2006 0.5435 0.6820
2007 0.4999 0.6840
2008 0.5449 0.7973
2009 0.6416 0.8921
2010 0.6475 0.8589
Source: Datamonitor D A T A M O N I T O R
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APPENDIX
United Kingdom - Fragrances 0183 - 0703 - 2010
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APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,
analyzed, cross-checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys
and supported by analysis from industry experts using highly complex modeling & forecasting tools,
Datamonitor’s in-house databases provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst
commentary, company profiles and macroeconomic & demographic information, which enable our
researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to country. The
parameters of each definition are carefully reviewed at the start of the research process to ensure they
match the requirements of both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest
industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative
and qualitative data to be combined with related macroeconomic and demographic drivers to create
market models and forecasts, which can then be refined according to specific competitive, regulatory
and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and
up-to-date
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APPENDIX
United Kingdom - Fragrances 0183 - 0703 - 2010
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Industry associations
British Fragrance Association
PO Box 173 , Cranleigh Surrey GU6 8WU, United Kingdom
Tel.: 44 1483 275 411
Related Datamonitor research
Industry profiles
Fragrances in Europe
Fragrances in Asia-Pacific
Global Fragrances
Fragrances in Spain
Fragrances in Italy
Fragrances in Germany
Fragrances in France
Fragrances in Russia
Fragrances in Australia
Fragrances in Singapore
Fragrances in Japan
Fragrances in India
Fragrances in China
Fragrances in Brazil
Fragrances in United States
Fragrances in Mexico
Fragrances in Canada
Fragrances in Portugal
Fragrances in Ireland
Fragrances in New Zealand
Fragrances in Hong Kong
Page 40
APPENDIX
United Kingdom - Fragrances 0183 - 0703 - 2010
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Fragrances in South Africa
Fragrances in Switzerland
Page 41
APPENDIX
United Kingdom - Fragrances 0183 - 0703 - 2010
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Disclaimer
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