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and the strong growth markets today,” so short that it’s very diffcult to develop honing in on our small and medium-sized says Symrise’s Mouleyre. The company’s a totally new olfactory trend—there is clients. They’re playing on our turf, which is creative centers have local development simply not the time. Some fragrances have totally new. Everyone is looking for growth and evaluation experts who work with the succeeded, like Mugler’s Angel, but in everywhere; it’s a sign of the times,” group’s perfumers, which, she says allows today’s crowded marketplace, it’s doubtful comments Fragrance Resources France the company to bring a ‘culture-centric’ whether the fragrance would have the general manager Alexandrine Demachy. approach to each fragrance. same level of success.” Markets like the Middle East are also Tighter regulations on the horizon infuencing what ingredients are used, Putting an additional dent in the industry’s as more brands ask for specifc regional creative potential (and budgets) is the notes, especially as they develop prestige “ specter of increasing regulations (see fragrance collections. “At frst these notes Even the major [fragrance article, p.42). “Unfortunately, one cannot were ‘curiosities’, but some have now creation] groups are honing reverse an already lost battle for some become solid trends. These are no longer in on our small and medium- ingredients that will be further limited or exotic notes, but have become totally will have to disappear. Yet, with more integrated into the perfumer’s palette,” sized clients. They’re playing transparency and goodwill, the industry can comments Firmenich’s de Lisle. “Look at on our turf and that is totally reverse the trend through more effective oud, for example. At frst strictly confned new. Everyone is looking for communication,” Mane president Michel to the Middle East, oud is now resonating Mane tells BW Confdential. But despite in fragrances [not just in Western growth everywhere; it’s a sign better communication between suppliers markets] but also in China, Indonesia and of the times and brands, when the list of 26 potential throughout Asia. Fragrance is becoming allergens in Europe increases to 91—which more global, but it’s also more local at the will probably go into effect within the next same time,” notes Mouleyre. Alexandrine Demachy ” year—it will undoubtedly be a major blow to suppliers. Fragrance Resources France gm Testing perfect As the industry evolves and regulations Demands from brands for an immediate become more stringent, companies will return on how a fragrance will perform Innovation is also threatened by be called on to provide an offer beyond through consumer testing continues to escalating costs (see article, p.40). “If just fragrance. This is already starting to complicate the creative process. “Tests prestige fragrance has become banal, it’s happen, as fragrance houses invest in new can certainly be interesting and provide because the price of briefs has collapsed,” technologies and services to enhance their insight, but they don’t bring success. explains Eurofragances global business offer. Robertet, for example, acquired CO2 A fragrance that tests extremely well is director Laurent Mercier. The perfumer extraction supplier Hitex in January this one that will be accepted by a very large removes ingredients that are too costly year, and Cosmo International Fragrances number of consumers, but those consumers simply because he doesn’t have the budget is mining raw materials for benefts beyond will also tire of the fragrance more easily,” to use them. just scent. Givaudan, meanwhile, made its argues Mouleyre. One trend that is hoped will help boost frst acquisition since the purchase of Quest Some fragrance houses say that testing perfumers’ creative output is the growing in 2006 with the acquisition of French has accelerated, as brands now require number of in-house perfumers at brands. supplier Soliance, a company specialized even more ‘guarantees’, given the So far, however, this does not seem to in active ingredients from vegetal sources, escalating promotional budgets needed have produced a notable revolution when it microorganisms and microalgae, earlier this to launch a blockbuster. The bottom line, comes to the launch of creative juices. year. The acquisition signals the group’s said one executive, is that marketing The niche market is singled out as the return to the cosmetics business, which it teams today simply won’t risk launching a last remaining segment where creativity had given up around 15 years ago. fragrance that is truly innovative and hasn’t is still the norm—one perfumer calls Fragrance houses face many challenges, tested successfully —it is a move deemed niche the “last reserve” of creativity in an but executives are hopeful that the industry too risky in today’s market. increasingly me-too fragrance market. will be able to manage the looming Robertet fragrance division president Niche brands, once the specialty of small regulatory changes, inject more innovation Christophe Maubert argues that the pace fragrance houses, are now attracting into the creation process and stay afoat in of launches also prevents the emergence more attention from big suppliers. “Even mature markets, while mining growth in of innovative juices. “Product life cycles are the major [fragrance creation] groups are developing regions. A tall order indeed. n September-October 2014 - N°19 - BW Confidential 31
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