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Category overview Insight: Fragrance s The market is seeing investment in more major launches this year, including the debut fragrance from Alaïa, Shiseido’s Ever Bloom, Paco Rabanne’s Olympéa and the first scent from Miu Miu n n n for smaller sizes as they simply can no Despite better growth rates in value terms, fankers. This year, however, there seems to longer afford the 100ml version. unit sales of fragrance in many markets continue be more investment in major launches. BPI for While the high end may be growing, the mass to fall. In short, the consumer is buying less example is launching new brand Alaïa, Dior and celebrity segments are doing less well. Mass fragrance than before or else she is buying has come out with a new major men’s scent, fragrances have put in a poor performance in elsewhere—that is, in outlets not covered by the Sauvage, fronted by actor Johnny Depp, Coty mature markets: sales in the category fell 3.9% market’s research panels. Last year in Europe has introduced the frst scent from fashion brand last year in North America and reported just Miu Miu, while Puig has launched two new 0.5% growth in Western Europe, according to major women’s scents: Olympéa from Paco Euromonitor International. Meanwhile, many While brands have long talked Rabanne and L’Extase from Nina Ricci. continue to talk about the demise of the celebrity about the need to focus on Other groups that have not traditionally been segment. It is thought that this segment, which fewer, but bigger launches, the strong in fragrance are looking to boost their accounted for 15-18% of sales a few years presence in the market. Shiseido for example, ago, now only represents around 5-6% of industry may be beginning to has come out with a major new fragrance this the market. Parlux president Don Loftus says take this more seriously year for its namesake brand. Called Ever Bloom, however, that the decline of celebrity is more of the brand is hoping to increase its fragrance “a murder than a death” and blames retailers share of sales in Europe from 4% today to 10% for not treating the category properly. “The by 2020. consumer hasn’t decided that she doesn’t want (France, Italy, the UK and Spain), combined unit Meanwhile, the majors continue invest heavily to buy a celebrity fragrance, it is the retailer sales of prestige fragrances fell by 3%, according in their key launches. Lancôme for example, that is tired of launching them and then have to NPD. To bring the consumer back and make is making major efforts to drive its La Vie est them collapse the next year. I understand it is fragrance more attractive, analysts say the Belle scent. In France, last year Lancôme pulled frustrating because they want everything to industry needs to go back to basics, invest more off a major coup by reaching the number-one be Chanel No5, but it is a different business in the juice, reduce the number of fankers and ranking, knocking Dior’s J’adore off the top spot. model—what you like when you are 16 is not make the offer clearer. While brands have long talked about the what you like when you are 17. But if we know need to focus on fewer, but bigger launches, that, we can build the category that way, so the Bigger, better launches the industry may be beginning to take this celebrity market should be in and out, fun and Last year, industry watchers remarked on the more seriously. Even Coty, known for its strong interactive; it shouldn’t be in glass cases sitting lack of major new launches to hit the market pipeline of products, is looking to reduce the next to Chanel and Dior,” he comments. and the proliferation of limited editions and number of fankers it comes out with and focus 40 November-December 2015 - N°24 - BW Confidential