Hello! Can you help me please to describe the FRAGNANCE MARKET. Thank you.

Answers from previous questions if you need.

1.The global perfume market size was estimated at USD 32.50 billion in 2019 and is expected to reach USD 33.69 billion in 2020. The global perfume market is expected to witness a compound annual growth rate of 3.9% from 2019 to 2025 to reach USD 40.91 billion by 2025. The industry is highly profitable owing to the facts above, market value and expected growth indicate the profitability of an industry and in this case both these factors are increasing tremendously.

2.Hugo Boss is a popular company owned by Procter and Gamble. The profitability of this company's fragrance sector is above average as it is one of the leading companies in this sector. This can be credited to it's extreme brand awareness globally and it's specialization in high end perfumes. As for it's sustainable competitive advantage it's safe to say that Hugo Boss will be in business for a long time if management is right and the right business structures are planned and executed. However, it faces some few challenges, a technological factor that could see Hugo Boss and its sales start to decrease is the fast increasing usage of the internet. With more and more consumers using the internet, and more fragrances being released, it may be difficult for Hugo Boss to compete with these new or niche products. This is due to customers not actually being able to test the product before purchase. With more people using the internet, they may opt for the cheaper fragrances as to Hugo Boss with its high end, expensive fragrances.

3. The production activities of the fragrance industry are subject to diseconomies of scale due to the high cost incurred in production and packaging of perfumes. Perfumes are packaged in expensive containers and for a company engaging in mass production, the cost of production incurred is too high leading to diseconomy of scale. Cost of transportation and shipping also causes diseconomy of scale. The costs of production, packaging and transportation are the sources of diseconomy in the fragrance industry.

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