BW Confidential - Issue #12 - November/December 2012 - 42

Insight: Fragrance

Category overview

s The market has been driven by new additions to classic lines, such as Chanel’s Coco Noir and by fashion-inspired fragrances like Guerlain’s La Petite Robe Noir. Retailers are waiting to see how celebrity scent Lady Gaga (Coty) will perform

However, the big launch season is just beginning. And industry watchers are curious about how new scents like Lancôme’s La Vie est Belle, YSL’s Manifesto (both of which are backed by big marketing budgets and on which expectations are high at L’Oréal) will perform, as well as Chanel’s new fragrance Coco Noir. In terms of celebrity scents, retailers are waiting to see how Coty’s recent launch for the first Lady Gaga fragrance will perform. There is also hope that in Europe the string of upcoming launches will help offset the category’s shaky performance in the first half. “Since
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the beginning of 2012, the prestige perfumery sector [in France] has registered a decline in sales both in value and volume. The new fragrances coming out in September could reverse this situation, but the fall in unit sales remains a deep-seated trend,” comments French Federation of Selective Perfumeries (FFPS) deputy manager Marie-Hélène Morin. In the US, last year’s launches Bulgari’s Omnia and Valentino’s Valentina are seeing continued success. “Normally we expect more Americanoriented or celebrity brands [to be bestsellers], so we are seeing an evolution in the consumer.

Designer brands and premium-priced products are growing at the fastest rate and that trend seems to be continuing,” remarks NPD’s Grant. Pricing: how high? Upper prestige scents, or those priced over $100 are seeing strong growth, according to NPD. The segment increased by 45% in the US last year, while in the UK it was up by more than 70% and in France by nearly 20%. “This represents a smaller part of the business so it’s easier to grow, but it does indicate something. Early on in the recession, consumers weren’t trading down, but trading less, so sales were shrinking at times, but consumers were being more selective. That is becoming a stronger trend and they are making very careful choices about how they spend,” remarks NPD’s Grant. However, some players are alarmed by the escalating price of fragrances. “I deplore the fact that there is a regular stream of uninteresting launches and that prices continue to increase, and these increases aren’t only due to rising commodity costs,” says French department-store Printemps chief merchandising officer of beauty Charlotte Tasset. NPD’s Ringwald argues that the price increases remain moderate. “The price increases we are seeing are most often linked with changes in the product mix—more

M&A roundup
• France-based Interparfums announced in August that the Burberry beauty license was returning to the fashion house, but said that it will use the €181m gained (excluding inventories, receivables and other assets) to finance new acquisitions. It is thought that some of the beauty industry’s major groups are lining up to sign the Burberry license. • Shiseido-owned BPI is to see its star brand Jean Paul Gaultier go to Spanish group Puig when the fragrance license expires in 2016. The company has said it is actively looking for new licenses to compensate in part for the loss of Gaultier. • US beauty group Elizabeth Arden purchased the licenses for US pop star Justin Bieber and Nicki Minaj from US-based Give Back Brands, as well as those of Ed Hardy, True Religion and BCBGMaxAzria from New Wave Fragrances. • Fragrance retailer Perfumania purchased Florida-based fragrance company Parlux in a deal worth $170m earlier this year. The deal provides Perfumania with a portfolio of celebrity fragrance brands including Rihanna and Paris Hilton.
42

November-December 2012 - N°12 - BW Confidential



BW Confidential - Issue #12 - November/December 2012

Table of Contents for the Digital Edition of BW Confidential - Issue #12 - November/December 2012

Cover
Comment
Contents
Update
- Brand & retail news recap
- Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview L'Oréal Luxe president Nicolas Hieronimus
Insight: Fragrance
- Category overview
- Regional breakdown
- Retail strategies
- Sampling
- Launch roundup
Wellness
- Clarins' spa strategy
- Spa case studies
Retail
- Chinese shoppers abroad
- Direct sales
- Store concepts
Digital
- QR codes
- Selling beauty online
- Marketing strategies
Market watch: South East Asia
- Regional overview
- Thailand
- Indonesia
- Vietnam
Travel retail
- Industry analysis
- Retailer viewpoint
- New niches
- Retailer factfile
Emerging markets Company profile: Dabur
Radar Up-and-coming beauty brands
Packaging
- Sustainable packaging in the BRICs
- Packs for Chinese consumers
- Luxe Pack preview
Last word Uber founder Sarah Cross
BW Confidential - Issue #12 - November/December 2012 - Cover
BW Confidential - Issue #12 - November/December 2012 - 2
BW Confidential - Issue #12 - November/December 2012 - 3
BW Confidential - Issue #12 - November/December 2012 - 4
BW Confidential - Issue #12 - November/December 2012 - 5
BW Confidential - Issue #12 - November/December 2012 - 6
BW Confidential - Issue #12 - November/December 2012 - Comment
BW Confidential - Issue #12 - November/December 2012 - 8
BW Confidential - Issue #12 - November/December 2012 - Contents
BW Confidential - Issue #12 - November/December 2012 - 10
BW Confidential - Issue #12 - November/December 2012 - 11
BW Confidential - Issue #12 - November/December 2012 - - Brand & retail news recap
BW Confidential - Issue #12 - November/December 2012 - 13
BW Confidential - Issue #12 - November/December 2012 - 14
BW Confidential - Issue #12 - November/December 2012 - 15
BW Confidential - Issue #12 - November/December 2012 - 16
BW Confidential - Issue #12 - November/December 2012 - 17
BW Confidential - Issue #12 - November/December 2012 - - Companies on the move
BW Confidential - Issue #12 - November/December 2012 - 19
BW Confidential - Issue #12 - November/December 2012 - 20
BW Confidential - Issue #12 - November/December 2012 - 21
BW Confidential - Issue #12 - November/December 2012 - 22
BW Confidential - Issue #12 - November/December 2012 - 23
BW Confidential - Issue #12 - November/December 2012 - 24
BW Confidential - Issue #12 - November/December 2012 - 25
BW Confidential - Issue #12 - November/December 2012 - Take note Market facts, figures & trends
BW Confidential - Issue #12 - November/December 2012 - 27
BW Confidential - Issue #12 - November/December 2012 - Best of BW Highlights from our e-publication
BW Confidential - Issue #12 - November/December 2012 - 29
BW Confidential - Issue #12 - November/December 2012 - 30
BW Confidential - Issue #12 - November/December 2012 - 31
BW Confidential - Issue #12 - November/December 2012 - Launches The latest in fragrance, skincare & make-up
BW Confidential - Issue #12 - November/December 2012 - 33
BW Confidential - Issue #12 - November/December 2012 - 34
BW Confidential - Issue #12 - November/December 2012 - 35
BW Confidential - Issue #12 - November/December 2012 - Interview L'Oréal Luxe president Nicolas Hieronimus
BW Confidential - Issue #12 - November/December 2012 - 37
BW Confidential - Issue #12 - November/December 2012 - 38
BW Confidential - Issue #12 - November/December 2012 - 39
BW Confidential - Issue #12 - November/December 2012 - - Category overview
BW Confidential - Issue #12 - November/December 2012 - 41
BW Confidential - Issue #12 - November/December 2012 - 42
BW Confidential - Issue #12 - November/December 2012 - EC1
BW Confidential - Issue #12 - November/December 2012 - EC2
BW Confidential - Issue #12 - November/December 2012 - 43
BW Confidential - Issue #12 - November/December 2012 - 44
BW Confidential - Issue #12 - November/December 2012 - - Regional breakdown
BW Confidential - Issue #12 - November/December 2012 - 46
BW Confidential - Issue #12 - November/December 2012 - 47
BW Confidential - Issue #12 - November/December 2012 - - Retail strategies
BW Confidential - Issue #12 - November/December 2012 - 49
BW Confidential - Issue #12 - November/December 2012 - 50
BW Confidential - Issue #12 - November/December 2012 - 51
BW Confidential - Issue #12 - November/December 2012 - 52
BW Confidential - Issue #12 - November/December 2012 - - Sampling
BW Confidential - Issue #12 - November/December 2012 - 54
BW Confidential - Issue #12 - November/December 2012 - 55
BW Confidential - Issue #12 - November/December 2012 - - Launch roundup
BW Confidential - Issue #12 - November/December 2012 - 57
BW Confidential - Issue #12 - November/December 2012 - 58
BW Confidential - Issue #12 - November/December 2012 - 59
BW Confidential - Issue #12 - November/December 2012 - 60
BW Confidential - Issue #12 - November/December 2012 - 61
BW Confidential - Issue #12 - November/December 2012 - 62
BW Confidential - Issue #12 - November/December 2012 - 63
BW Confidential - Issue #12 - November/December 2012 - - Clarins' spa strategy
BW Confidential - Issue #12 - November/December 2012 - 65
BW Confidential - Issue #12 - November/December 2012 - - Spa case studies
BW Confidential - Issue #12 - November/December 2012 - 67
BW Confidential - Issue #12 - November/December 2012 - 68
BW Confidential - Issue #12 - November/December 2012 - 69
BW Confidential - Issue #12 - November/December 2012 - - Chinese shoppers abroad
BW Confidential - Issue #12 - November/December 2012 - 71
BW Confidential - Issue #12 - November/December 2012 - - Direct sales
BW Confidential - Issue #12 - November/December 2012 - 73
BW Confidential - Issue #12 - November/December 2012 - 74
BW Confidential - Issue #12 - November/December 2012 - 75
BW Confidential - Issue #12 - November/December 2012 - 76
BW Confidential - Issue #12 - November/December 2012 - 77
BW Confidential - Issue #12 - November/December 2012 - - Store concepts
BW Confidential - Issue #12 - November/December 2012 - 79
BW Confidential - Issue #12 - November/December 2012 - 80
BW Confidential - Issue #12 - November/December 2012 - - QR codes
BW Confidential - Issue #12 - November/December 2012 - 82
BW Confidential - Issue #12 - November/December 2012 - 83
BW Confidential - Issue #12 - November/December 2012 - 84
BW Confidential - Issue #12 - November/December 2012 - - Selling beauty online
BW Confidential - Issue #12 - November/December 2012 - 86
BW Confidential - Issue #12 - November/December 2012 - 87
BW Confidential - Issue #12 - November/December 2012 - - Marketing strategies
BW Confidential - Issue #12 - November/December 2012 - 89
BW Confidential - Issue #12 - November/December 2012 - 90
BW Confidential - Issue #12 - November/December 2012 - - Regional overview
BW Confidential - Issue #12 - November/December 2012 - - Thailand
BW Confidential - Issue #12 - November/December 2012 - 93
BW Confidential - Issue #12 - November/December 2012 - - Indonesia
BW Confidential - Issue #12 - November/December 2012 - 95
BW Confidential - Issue #12 - November/December 2012 - - Vietnam
BW Confidential - Issue #12 - November/December 2012 - 97
BW Confidential - Issue #12 - November/December 2012 - - Industry analysis
BW Confidential - Issue #12 - November/December 2012 - 99
BW Confidential - Issue #12 - November/December 2012 - 100
BW Confidential - Issue #12 - November/December 2012 - 101
BW Confidential - Issue #12 - November/December 2012 - - Retailer viewpoint
BW Confidential - Issue #12 - November/December 2012 - 103
BW Confidential - Issue #12 - November/December 2012 - - New niches
BW Confidential - Issue #12 - November/December 2012 - 105
BW Confidential - Issue #12 - November/December 2012 - - Retailer factfile
BW Confidential - Issue #12 - November/December 2012 - 107
BW Confidential - Issue #12 - November/December 2012 - 108
BW Confidential - Issue #12 - November/December 2012 - 109
BW Confidential - Issue #12 - November/December 2012 - Emerging markets Company profile: Dabur
BW Confidential - Issue #12 - November/December 2012 - 111
BW Confidential - Issue #12 - November/December 2012 - Radar Up-and-coming beauty brands
BW Confidential - Issue #12 - November/December 2012 - 113
BW Confidential - Issue #12 - November/December 2012 - 114
BW Confidential - Issue #12 - November/December 2012 - 115
BW Confidential - Issue #12 - November/December 2012 - 116
BW Confidential - Issue #12 - November/December 2012 - - Sustainable packaging in the BRICs
BW Confidential - Issue #12 - November/December 2012 - 118
BW Confidential - Issue #12 - November/December 2012 - 119
BW Confidential - Issue #12 - November/December 2012 - 120
BW Confidential - Issue #12 - November/December 2012 - - Packs for Chinese consumers
BW Confidential - Issue #12 - November/December 2012 - 122
BW Confidential - Issue #12 - November/December 2012 - 123
BW Confidential - Issue #12 - November/December 2012 - - Luxe Pack preview
BW Confidential - Issue #12 - November/December 2012 - 125
BW Confidential - Issue #12 - November/December 2012 - Last word Uber founder Sarah Cross
BW Confidential - Issue #12 - November/December 2012 - 127
BW Confidential - Issue #12 - November/December 2012 - 128
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