Perfume companies are among the chief victims of the pandemic in the beauty industry. But they are adapting to e-commerce and their brands could make billions in the future, says Vivian Blumenthal
Vivian Blumenthal predicts that some cosmetics companies will emerge from the coronavirus pandemic “stronger than before” - and their brands will enter the “billionaire club”. Specifically, Vivian points to the opportunities that come from the $26 billion perfume market.
“As [quarantine] restrictions ease, perfume companies - some of the chief victims of COVID-19 in the beauty industry - are bound to return. And perhaps stronger than ever, as brands adapt to life in the digital world, ”writes Vivian.
While perfume sales are down $5 billion in 2020 from the previous year, it set the sector to recover, Vivian said. This is partly because of the development of e-commerce.
Vivian Blumenthal notes that some perfume brands can enter the "billionaire club" - they can earn more than $1 billion a year from the sale of their products. But to become part of the club, they need to surpass the market through innovation. And it's better if the brand works in other areas of the beauty industry - for example, in skincare and makeup.