The FINANCIAL — The UAE, Poland 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 makes up just 4% of total perfume imports in Georgia. Perfume import has shrunk in Georgia in January-August 2014 by almost 30 tonnes since the same period of the previous year.
585.4 tonnes of perfume worth USD 11,763.9 thousand was imported in Georgia during the first 8 months of 2014. In 2013 the number was 555.7 tonnes, worth USD 11,216.2 thousand.
Out of the total volume, the major share – 141.9 tonnes was imported from the United Arab Emirates during the first eight months of 2014. 124.2 tonnes was imported from Poland, 115.6 tonnes from China, and just 20.9 tonnes from France.
The largest amount of growth has been shown in import from the UAE. The volume of imported perfume products increased by 106.5 tonnes during January-August 2014, in comparison with the same period of the previous year. The UAE is followed by China. Import of perfume from China increased by 82.6 tonnes this year. This year, the UAE has moved ahead of Poland, which was previously the lead exporter of perfume products to Georgia.
“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 sale of counterfeited products as it damages the country’s economy in general. Such products are mainly being sold in non-branded stores in Tbilisi. 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 sale 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 fair at all. 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.
Lutecia continues to import new arrivals on the Georgian market. “Molecule” is the new fragrance that the company has 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 that online shopping has on our business is minimal,” Mariam Robitashvili, Marketing Manager at Lutecia, told The FINANCIAL.
“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.
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