Friday, October 6, 2017

Fragrance Industry News: Big Brands, Niche Players and Celebrities

The perfume industry is going through different phases and looking into the developments, what with the mergers, acquisitions, take-overs and profit reports, as well as the perfume best-sellers lists, is always interesting in its own way. According to the latest reportage there are news in what concerns big players and the continuing growth of niche in the market segmentation.

via

As per the BBC news, "Coty - the New York beauty brand behind famous names such as Calvin Klein, Marc Jacobs, Gucci, Hugo Boss and Chloe - has faced headwinds this year.
In August, it reported a surprise quarterly loss that was partly blamed on "materially" higher marketing costs for the launch of new fragrances, including Gucci Bloom and Hugo Boss Tonic.
L'Oreal, which sells fragrances under brands including Yves Saint Laurent, Ralph Lauren and Diesel, also reported disappointing sales and profits for its most recent quarter." 

It's interesting to note one particular detail which might be explaining the differentiation of niche in practical terms for consumers.
Again according to BBC News, "[market research firm]Mintel estimates UK sales will be worth about £1.5bn this year, making it the fifth-biggest market globally behind Brazil, the US, Russia and France. As with other retail sectors, she says one of the problems is savvy consumers who try out products in a physical store but then go online to buy it for less." 
Niche perfumes by default offer less sampling opportunities in store and they also have different sales practices regarding shop distributions and to the sales bonuses of the sales assistants pushing them.

The data for the celebrity fragrances however seems contradicting. One source (Mintel to be precise) "releasing a fragrance emblazoned with the name of a celebrity, such as Britney Spears, Beyonce or Jennifer Lopez - appears to be waning. A third of consumers describe this approach as tacky."
The Washington Post cites that sales of celebrity scents "have dropped by half since 2000, while luxury perfumes have seen a recent sales increase of 16 percent, bringing them to a record high".  There is nevertheless the counter argument.

In an Allure article touting the quality of many celebrity fragrances (and indeed we have shared a bit of the love, when deserved, on these very pages) there will always be a place for celebrity scents. "We experience them not as people, but as products, ingesting whatever song, photo, or product they choose to release. They are not so much revealing themselves to us, but continuing to build the character they are projecting themselves to be. We are falling in love with someone we will never know.
In that way, celebrity fragrances are different than scents from the big houses — the Armanis and Chanels. While brand loyalty is certainly a factor in what helps fragrances from the big guys fly off of the shelves every season (not without the help of a celebrity as the face of the brand and scent) celeb scents tap into a different part of our psyche." and concluding "the trend of celebrity fragrances will only completely die out when our collective obsession with celebrity does — which is to say, not any time in the near future."
Worth keeping in mind.

2 comments:

  1. Anonymous00:27

    Perhaps people just woke up to the fact that almost all reformulated or new "modern" fragrances last about as long as their deodorant without the hefty price tag a long time perfume lover I have stopped buying any premium fragrances for a few yearsnow so sad but then the young guns will think perfume always smelled,lasted,behaved this way !

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