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Bringing back luxury Luxe redux How the industry is looking to Insight: Fragrance bring back an element of luxury to the fragrance category by Alvira Khan-Gordon ragrance brands are looking to inject a little Fmore luxury back into their offering, inspired by the growth registered in the high-end and niche segments. Indeed, niche has become a real trend—the market is growing at an annual rate of around 20% and could represent 20% of the prestige sector in the near future, up from around 7% today. This shows that consumers are looking for more unique, exclusive and luxury brands, and the mainstream players are trying to tap into this demand. s Companies such as Shiseido with Serge Lutens and Estée Lauder with Tom Ford For several years now, one of the main ways are looking to focus on their high-end fragrance brands of doing this has been through launching more expensive and exclusive collections. Almost all of the main fragrance brands have their own to the niche segment. “Lauder has a proven record of [taking] small special collections. Companies have also sought to buy into brands and growing them—respecting their However, as more brands launch collections, the premium niche market. Estée Lauder DNA,” he adds. these fragrances risk losing their specialness and Companies (ELC) acquired Editions de Parfums the idea of luxury may become lost. Some say Frédéric Malle and Le Labo, while Puig Focus on the high end that the quality of the ingredients going into bought Penhaligon’s and L’Artisan Parfumeur. Aside from collections and niche offers, beauty these collections is not much better than what Meanwhile, Shiseido bought the trademark of companies are also choosing to focus on the is found in the mainstream market, and that the Serge Lutens fragrance brand. The group most prestige lines in their portfolios. ELC for often they are simply an excuse for raising prices. said that it aims to increase its investment in the example, is pushing the Tom Ford and Jo They add that the number of these fragrances brand, which will include opening standalone Malone brands. is doing more to pollute the market than push stores in major cities worldwide. Coty too, is looking to expand its reach in the it more upscale. “Collections can work if there While some worry that niche brands run the high-end segment. Company chairman Bart is a real purpose to them. However, brands risk of losing their point of difference once Becht recently commented in a conference call coming out with six or more fragrances at a time acquired by a large corporation, others see this that the more accessible celebrity scents market in a collection is bewildering; this just becomes as positive as it gives these small creative houses is in decline, leading analysts to believe that the a proliferation of fankers. It is like a shot gun, the fnancial backing to expand. It is also a sign group is looking to focus on higher-end lines. where bullets are sprayed out in the hope that that this niche market has come to be accepted Coty’s deal to purchase 43 beauty brands from one is going to hit. It is hard enough to come up by big industry players. P&G will include high-end brands such as Gucci with one great fragrance, never mind creating a Editions de Parfums Frédéric Malle founder and Dolce & Gabbana, giving the group more collection of three, four or fve,” fragrance expert Frédéric Malle for example, is robust in his clout in this category. and author of industry guide Fragrances of the affrmation that ELC’s patronage is the right The attention given to luxury at present has World Michael Edwards tells BW Confdential. choice. “I fnd it interesting that the most analysts wondering whether some of the Fragrance industry expert Chantal Roos adds signifcant purchases in this feld were made mainstream brands will begin to rein in their that the world of high-octane launches does by families that have been around for a long distribution. Many of today’s so-called luxury not allow the time and artistry needed for truly time and that know luxury. These fat mass- brands have lost their prestige as they are too creative perfumery that has attracted consumers market groups have missed the boat,” he says. widely distributed and are perceived by n n n November-December 2015 - N°24 - BW Confidential 47