The FINANCIAL — Poland, Ukraine and China are the top three importer countries on the Georgian perfume market. While the majority of dealers assert that their perfumes are from France, this country occupies just 3.7% of total perfume imports. Perfume import has shrunk in Georgia in 2013 by almost 40 tonnes since 2011.
148.2 tonnes of perfume worth USD 4,478.8 thousand was imported in Georgia during the first 9 months of 2013. In 2012 the number was 154.3 tonnes, worth USD 4,049.0 thousand, and in 2011 it was 182.1 tonnes, worth USD 4,701.9 thousand.
Out of the total volume, the major share – 34.6 tonnes, was imported from Poland during the three quarters of 2013. 32.9 tonnes was imported from Ukraine, 25 tonnes from China and just 5.5 tonnes from France.
Ici Paris, one of the leading perfume trade networks, has not seen a significant reduction of sales in 2013 compared to the previous year.
“Ici-Paris has developed dynamically in Georgia and makes up a significant share of the perfume market,” said Paata Gigauri, one of the founders of Ici-Paris. “Today we have about 20 stores and many international brands here. The only thing that would prove helpful for improving the market today would be an increase in the general solvency of society.
Chanel, Elie Saab, Narciso Rodriguez, Carolina Herrera, Hermes, Cartier, Bvlgari, Gucci, Dolce & Gabbana, Burberry, Versace and Shiseido are the most demanded luxe brands in the stores of Ici Paris.
Sales volume decreased by approximately 5-7% at the stores of another perfume network chain – Lutecia.
“The main problem on the Georgian market is the circulation of counterfeit products,” said Vakhtang Pkhakadze, President at Lutecia, perfume trade network. “We need our government’s help to prevent the selling of counterfeited products as it damages the country’s economy in general. Such products are mainly being sold in non-branded stores in Tbilisi on Aghmashenebeli Street. We want to found the Association of Perfumers in Georgia which will fight against such adulteration. So that there is no need to buy counterfeit products at ‘lower prices’, the Border Service together with the Association of Perfumers should control the market so that it may be protected from the selling of black market goods.
We run advertisements worth EUR 30,000 per brand every New Year and in this way raise awareness of the brands. Our advertisements are used to the benefit of the merchants of counterfeit products however, which sell their products successfully as the brands are well known to consumers thanks to us. This is not at all fair. This is not good for the economy either, or for business. Together with Yves Rocher we occupy half of the perfume and cosmetics market in Georgia,” he added.
Besides sales reduction, Lutecia continues to import new arrivals on the Georgian market. Molecule is the new fragrance that the company offered Georgian customers this year.
Bestselling brands at Lutecia include: Chanel, Dior, Estée Lauder, Tom Ford, Guerlain, Givenchy, Donna Karan, Swarovski and Loewe.
As it has recently become possible for Georgians to order perfume online, many customers have switched to this trend of shopping.
“Online shopping has an impact on store sales. Whereas two years ago customers were less used to online shopping now this culture has changed. In order to save money customers are ready to wait for weeks till their order arrives. However, the impact online shopping has on our business is less,” Mariam Robitashvili, Marketing Manager at Lutecia, told The FINANCIAL.
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