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on major launches. needs to be done to boost fragrance in retail. Michael Edwards. Parlux’s Loftus says that such a move, and While many of the market’s main retail players The growth of e-commerce is also seeing a giving fragrance the time to take hold before are looking to go more upscale and are giving shift in how brands approach the business. They moving on to the next launch, was the reason more space to niche, analysts say that stores are not only investing more in digital advertising that scents were so successful in the past and still need more editing, more original events to and social media, but also in samples, as well as believes that the industry needs to return to that entice consumers and better advice from BAs putting more effort into scented advertising in way of thinking. who know about fragrance and are able to talk magazines so consumers who buy online have about it rather than just push the latest launch. an opportunity to test the fragrance without Market shifts going into the store. But more changes are set But while companies may begin to focus on Retail boost to come. Whether the industry will be ready is fewer launches, there is no shortage of new There have been some interesting signs of another story. n brands coming onto the market. L’Oréal just this from the travel-retail sector. For example, signed a license with New York designer this summer Qatar Duty Free teamed up with Proenza Schouler to launch a new scent L’Oréal to launch a fragrance pop-up store at and Perfume Holding inked a deal with Dirk Hamad International Airport, Doha. The store Fragrance sales* by region 2014 Bikkembergs. Meanwhile, fragrance licenses showcases fve L’Oréal brands in a luxurious Region Sales $bn % change are changing hands at a fast pace. Interparfums setting. Similarly Bulgari launched a pop up store 2014/2013 signed a license with Coach, Gruppo Angelini in Charles de Gaulle airport in October. The Western 13.28 +0.3 inked a deal for Laura Biagiotti, while Puig will store will focus on the links between Bulgari’s Europe take over the Jean Paul Gaultier business from jewelry and fragrance and feature the brand’s Latin America 13.20 +14.1 BPI at the beginning of next year. most prestigious perfume collections. These But the biggest shift in the industry is of course efforts come on top of recent initiatives from key North America 6.54 +2.0 Coty’s move to buy 43 beauty brands from P&G. operators such as DFS’ Masters of Fragrances, Middle East & 4.92 +11.5 The deal covers 12 fragrance brands, including Nuance’s Haute Parfumerie concept and WDF’s Africa Hugo Boss and Lacoste. area for premium fragrances. Eastern Europe 3.92 +1.2 The acquisition not only more than doubles But it is not just at the top end of the retail Asia Pacifc 3.52 +6.8 Coty’s sales to more than $10bn, but also makes market that more needs to be done. Parlux’s Australasia 0.59 +1.3 it the number-one fragrance player, ahead of Loftus says the decline of celebrity scents is in World 45.93 +6.0 L’Oréal, according to Euromonitor. The deal large part the result of retailers not giving the creates another fragrance giant and Coty is set segment the right attention. The company is Source: Euromonitor International *Retail sales price to beneft from increased purchasing power and working on leasing space from retailers to install its critical mass with retailers. However, L’Oréal a new concept bringing together celebrity brands Global fragrance sales* prestige vs mass ceo Jean Paul Agon said the fact that Coty will from its own company and competitors that will Category Sales $bn % change own these brands will not change much, but focus on elements intended to attract young 2014/2013 added that he was glad that P&G had decided consumers. It may also test the concept as kiosks Prestige 25.47 +4.9 to “give up the fght in beauty and realized that in malls. Mass 20.46 +7.4 it is not a business for them.” One reason retailers are being forced to up Source: Euromonitor International *Retail sales price The jury is still out on how Coty will manage their game is the growth of e-commerce. Online the P&G portfolio. Analysts say that the group is taking a bigger share of major retailers’ will have its work cut out digesting such a big fragrance sales especially in key markets like the Europe’s best-selling prestige fragrances 2014 acquisition, especially as Coty is going through US, the UK and Germany. Country Women’s Men’s a restructuring program of its own. They also However, here too retailers could do more. France La Vie est Belle Invictus wonder if Coty will be able to turn around some Brands say retailers need to make efforts to push (Lancôme) (Paco Rabanne) of the brands it is acquiring, which have been online consumers into stores and vice versa, Italy J’adore Acqua di Giò pour under-performing. On the other hand, Coty will and present the category in a more creative way (Dior) Homme (Armani) be glad to get its hands on some of the high-end on their websites. “The model of the future is Spain Eau de Rochas Hugo Boss names in P&G’s portfolio, such as Gucci and where certain websites become a showcase of (Rochas) (Hugo Boss) Dolce & Gabbana. Coty is thought to be looking fragrance and of brands. We haven’t seen it as UK Coco Mademoiselle 1 Million to focus more on the premium end of the market yet because when you go to websites there are (Chanel) (Paco Rabanne) and perhaps pull away from the declining just endless lists of fragrances. There is hardly Europe Coco Mademoiselle 1 Million celebrity model. creativity in that—the retailers need to make (Chanel) (Paco Rabanne) Aside from changes on the brand side, more their sites live,” comments fragrance expert Source: NPD, in value November-December 2015 - N°24 - BW Confidential 41