Rises in consumer spending has helped profit increase from recessionary lows
New York, NY (PRWEB) July 29, 2014
The Perfume and Fragrance Stores industry has been recovering steadily from the recession. Perfume and fragrance products are discretionary items, and as such, they are highly sensitive to fluctuations in both disposable income and consumer confidence. Improving economic conditions have helped drive the industry's performance over the past five years, and are expected to continue doing so in the five years to 2019. IBISWorld estimates that industry revenue has increased in the five years to 2014.
Per capita disposable income has been on the mend since the recession, and IBISWorld expects it has grown in the five years to 2014. This growth rate is anticipated to accelerate in the next five years as unemployment levels fall and overall economic activity continues to grow. Perfume and fragrance stores benefit from relatively steady demand from consumers, as there are few substitutes available for the industry's products. As consumers have increased spending in the past five years, profitability has increased from recessionary lows. IBISWorld anticipates that profitability will continue to expand, albeit marginally, in the next five years.
In the five years to 2019, IBISWorld estimates that industry revenue will grow. Growth will likely be the result of higher consumer confidence and additional premium products entering the market. In the five years to 2019, per capita disposable income is anticipated to rise and the industry's largest demographic, people aged between the ages of 20 and 64, is also anticipated to grow. IBISWorld expects that large department store operations will continue to dominate, though smaller boutiques have an opportunity to enter the largely fragmented industry. Due to the personal nature of the industry's products, IBISWorld expects consumers will continue to seek out advice and expertise from employees of the industry, rather than immediately purchasing the industry's products online. Consequently, the number of industry operators is anticipated to increase over the next five years, which will likely increase industry competition as well.
For more information, visit IBISWorld’s Perfume and Fragrance Stores in the US industry report page.
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IBISWorld industry Report Key Topics
Stores in the Perfume and Fragrance Stores industry sell men's and women's fragrances, including perfumes and colognes.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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