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    Features

    This Stinks!

    The pandemic has been a plague on the fine fragrance industry; but the beauty industry is resilient and there are signs of a rebound.

    This Stinks!
    This Stinks!
    Source: Market Advantage TSV; IRI Liquid Data
    This Stinks!
    Donna Karan Cashmere Mist
    This Stinks!
    Mica D’Oro
    This Stinks!
    If shoppers can’t shop, digital sampling is key.
    Tom Branna, Editorial Director11.05.20
    No dinner and no movie. No vacation trips either, for that matter. Even trips to the mall are a hassle. COVID-19 has wreaked havoc on consumers’ travel and entertainment plans. Restaurants and the travel industry have been decimated by the pandemic and other industries, like fine fragrance, are feeling the effects, too. After all, if a woman has nowhere to go, does she bother applying perfume? She should, insists Linda Levy, president of The Fragrance Foundation.

    “People of all ages and backgrounds are enjoying scent during this time for the many benefits that fragrance provides, including enhancing one’s mood or sparking memories of happy times,” she told Happi. “Scent is the No. 1 sense most linked to how the brain processes memories and emotions. Fragrance is worn as an invisible accessory and may help people feel more put together fashion-wise and balanced during this time.”

    Unfortunately, for fine fragrance marketers and their suppliers, very little is in balance these days. According to The NPD Group, prestige beauty sales fell 24% through August, 2020. As one, might suspect, in today’s masked society, makeup is the worst performer, declining 36%; but fragrance is suffering too, with sales off 21% from a year ago. In contrast, skin care sales declined just 13% and prestige hair care sales actually rose 3%.

    “With hair salons closed, consumers had to move to other channels to purchase products,” explained Larissa Jensen, vice president, industry advisor-beauty.

    But when the lockdown went into effect in March on much of the East and West Coasts of the US, fragrance and makeup categories were the hardest hit. Declines were steep and dramatic through April, recalled Jensen. But as traditional retail started to reopen, fragrance sales began to rise; a gain that coincided with all-important Mother’s Day purchases.

    “Fragrance is very much a try-and-buy category,” noted Jensen. “Online fragrance sales are all about replenishment, you go with what you know.”

    The numbers bear that out. Just 15% of fragrance sales came from online purchases pre-COVID v. 30% for skin care sales. As stores re-opened, fragrance sales recovered. Prestige sales fell just 6% in June, 7% in July and were actually flat in August—a vast improvement over the 45% declines early in the pandemic.

    “We believe consumers will continue to wear and purchase fragrance. It’s a mood enhancer which during this time is more important than ever,” asserted Patrice Béliard, global brand president, Aramis & Designer Fragrances, Kilian Paris, Editions de Parfums Frédéric Malle, and Lab Series. “Consumers are beginning to consider fragrance as a form of self-care.”

    Although consumer shopping behaviors have shifted during the pandemic, he noted that beauty is extremely resilient.

    “For fragrance in particular, scent ignites emotions and escapism. Being confined to home during this pandemic has driven the desire for escapism, and consumer interest in alternative categories like home scenting, and scented bath and body products has grown,” said Béliard. “As people’s daily routines and habits are changing, so are their purchasing habits. The evolution in attitude of the consumer is a strong use of products.”

    With the unemployment rate soaring, more consumers, it seems, are opting for less expensive scents. Mass market fragrance sales declined, too, but the drop wasn’t nearly as dramatic. According to IRI, sales of women’s perfumes and colognes dropped 5.1% to about $626 million and men’s shaving lotions and fragrances fell 8.0% (see chart).


    Data from IRI for the 52 weeks ended September 6, 2020.
    What They Want

    Fragrance suffered dramatic drops in department stores, but there have been bright spots. Sure, traditional perfumes have declined but fragrance candles and environmental scents recorded an uptick in sales (see p. 42, Happi, September 2020). There’s even been some good news within traditional fine fragrance categories.

    “We see artisanal brands, such as Creed, Bond No. 9 and Jo Malone, capturing greater share,” observed Jensen. “They have higher price points, but they also represent life’s little luxuries.”

    Formulas with higher concentrations of fragrance oils are gaining larger shares of men’s and women’s fragrance sales. Marketers are taking note of the trend and instead of a new launch or flanker, they’re rolling out stronger versions of existing scents. Jensen noted that the more-is-more trend is occurring across many categories these days, where instead of, for example, a Summer Blonde beer, consumers are opting for Guinness.

    “They want more bang for their buck. Stronger scents last longer and if you must practice social distancing, a stronger scent can still have an impact from six feet away,” explained Jensen.

    Levy agreed that stronger scents are resonating with consumers and added that there are some bright spots in home fragrances, sanitation, soaps, spa and self-care categories. She pointed out that classic fragrances and established brands in the prestige categories have been performing well since the pandemic as other fragrances are much more challenged.

    Béliard observed that in a post-COVID environment, people are looking for a scent with emotional benefits.

    “Consumers want reassuring, calming and optimistic scents. I foresee a resurgence of classic nostalgic scents during these times,” he predicted. “In this context, new modern takes on chypre and oriental families for women and fougére for men are growing in popularity. Warm woods are also seeing growth as they are powerful yet reassuring.”

    Additionally, as in all consumer categories, digital sales have accelerated during this time as business continues to shift online. The Fragrance Foundation has shifted online, too. All of its events will be virtual until further notice.

    “We continue to engage with our long-term loyal members as well as bring in new members,” she told Happi. “This year, we are expanding our community to include smaller indie brands by creating a special membership opportunity for a limited time period. We have added a new objective, to grow and expand our community to include diverse members. This objective will be key in all our activities and initiatives, and we have already begun our action plan.”

    A newly formed Indie Advisor Panel has been assembled with fragrance industry experts who will provide guidance to indies and entrepreneurs. Member benefits include connecting and providing access to the TFF network of brands, retailers, fragrance houses and suppliers. The Fragrance Foundation will host more webinars and recognition opportunities for its members, too.

    “Additionally, we amplify our member brands on our platforms, which include our social media accounts @fragrancefoundation on Instagram, a weekly email newsletter, Noteworthy, and the monthly digital magazine Accords,” added Levy.

    Béliard noted that sampling at all touch points, and more specifically, digital and social sampling, is crucial to getting the product in consumer hands to drive conversion.

    “Even more than before, the emphasis is on smart, targeted sampling,” he added.

    There’s an emphasis is on proper communication, too.

    “Fine tuning fragrance sensory vocabulary is invaluable as physical testing is no longer an option,” he said. “We need to make sure we’re telling our fragrance story effectively. We’re also doing this by utilizing imagery and assets to draw people into the universe and story of the fragrance. Also investing in data to target efficiently and using influencers as product educators. Consumers who follow beauty influencers will purchase fragrance through social media.”

    The new Donna Karan Cashmere Mist campaign is designed to reinvigorate the brand with a fresh look while appealing to a new generation of consumers. The creative is a return to the historic launch campaign concept and celebrates today’s woman- strong and unapologetic, according to Béliard.

    “Cashmere Mist has been a top seller in North America since it was introduced over 25 years ago, and the antiperspirant/deodorant is the number one prestige fragrance ancillary. With such a dedicated fan base, we want to ensure we’re also cultivating a new generation of brand enthusiasts for this iconic fragrance,” explained Béliard.

    What’s New?
    Perfect Marc Jacobs is inspired by the designer’s mantra, “I am perfect as I am.” The floral scent, created by IFF, opens with notes of rhubarb and daffodil with a heart of almond milk. The base includes cedarwood and cashmeran. The EDP is available at $96-128 price points.

    J’Adore eau de parfum Infinissime (from $115) opens with a burst of centifolia rose, jasmine sambac, ylang-ylang and Grasse tuberose, with a drydown of creamy sandalwood, according to Dior.

    “By incorporating Grasse tuberose into the J’Adore composition, I created a romantic encounter,” explained Perfumer François Demachy. “It is as though J’Adore ‘seduced’ the tuberose, taking it on, showcasing it, coloring it and giving it light. It instantly symbolizes a powerful and confident femininity.”

    At Jo Malone, new Fig & Lotus Flower cologne ($72-142) is described as a light floral with top notes of fig leaf, middle notes of lotus flower and vetiver base notes.

    “The twist is the lotus flower, adding a light floral freshness to the fruity fig scent,” according to Celine Roux, global head of product development.

    Designer Rebecca Minkoff makes her entry into the fine fragrance space with an eponymous scent. Rebecca Minkoff eau de parfum ($55-95) includes notes of jasmine, coriander and tobacco, which combine to deliver “sensuality, warmth and a magnetic aura.” According to the company, the inspiration for the signature scent is of a woman who defines her own sense of self.

    Acqua di Parma’s Colonia Furtura eau de cologne ($170) contains top notes of bergamot, citrus and pink pepper over a vetiver base.

    Giorgio Armani’s new My Way eau de parfum ($74-$126) is a floral that opens with bergamot and Egyptian orange blossom that evolves in a bouquet of tuberorse and jasmine from India, followed by a base of  Virginia cedarwood, Madagascar vanilla and white musk.

    As one might suspect, Maison Francis Kurkdjian l’Homme À la rose ($165-$275) contains notes of damask and centifolia roses. More specifically, the scent opens with grapefruit accord and damascena rose oil. The heart features amber accord and sage oil, while the drydown includes Centifolia rose absolute and Cistus labdanum oil.

    Looking for a rose scent by any other name? There’s Roses on Ice by Kilian ($195). Part of Kilian’s Liquors olfactive family, Roses on Ice combines gin on the rocks with cucumber and juniper berries, along with rose centifolia and sandalwood.

    Another sandalwood-based scent is Valentino Voce Viva ($100). The fragrance also includes notes of ginger, orange blossom and vanilla.

    These days, everyone needs an emotional lift and Tumi’s new men’s eau de parfum duo Awaken and Unwind ($100) is said to do just that. Awaken is a fougere citrus woody fragrance that serves as an energizing accessory to boost his day. Unwind “captures the essence of discovery invoked by travel and examines the feeling of being transported…” something we could all use as we face the longest of winters. Unwind includes top notes of aquatic, lemon and ginger; middle notes of lavender, sage and geranium; all on a base of vetiver, oud and, once again, sandalwood.

    Mica D’Oro is the newest addition to Valmont’s Storie Veneziane collection of fragrances inspired by Venice. According to CEO Sophie Guillon, the oriental gourmand scent with spicy, powerful accords, is a homage to the Serenissima Venice of the 15th Century. Prices range from $330 to $540 for eau de toilette, eau de parfum and perfumes. According to Guillon, everyone will find the fragrance best suited to their life and their tastes. The golden bottle and Murano glass mask feature 24 karat gold.

    “The Storie Veneziane customer is a person who likes strong and opulent perfumes,” Guillon explained. “She wishes to mark her personality and recognizes herself in the six different opuses. From the freshest to the most gourmand, each creation is a journey. Venice also represents all the richness of artistic creations. Our clients love to travel through these perfumes.”

    Of course, virtual travel is the most popular, and often only, form of travel these days.

    “COVID-19 taught us to work in a different way. Our customers contacted us by phone or internet,” said Guillon. “We have set up a concierge service in Europe to be able to advise them personally. The activity has decreased but we are trying to maintain our activity.”

    The Storie Veneziane collection is available at lamaisonvalmont.com.

    “All our beauty advisors have been at the service of the customers and have adjusted their sales through e-commerce,” said Guillon. “This sales support is becoming more and more important in the global markets. We are adapting and our company has been practicing home working for more than 20 years. All these changes do not scare us.”

    Fragrances are not only available online—these days, they’re developed online, too. St. Rose and Givaudan worked almost exclusively via Zoom to create Vigilante. The fragrance ($165) features top notes of Australian sandalwood, cedarwood, patchouli and cistus, and is available online at www.st-rose.com and in select UK and Australian retailers.

    Obviously, the new normal isn’t scaring away fragrance marketers from rolling out scents, whether they are available in-store, online or a combination of both.

    Down, But Not Out
    Many observers insist that the pandemic sounded a death knell for traditional brick and mortar, but Jensen insists that while traditional stores may be down, they are far from out. Jensen noted that prior to COVID-19, the online channel accounted for 23% of beauty sales. During the pandemic, that percentage soared to 46%, and while she expects that share to decline, Jensen doesn’t expect online’s share of beauty to fall back to 23%. In order to survive, brick and mortar must change with options such as buy online with instore pickup and other melding of retail channels.

    “We saw it during the pandemic with the popularity of Instacart. There are other ways to engage the consumer,” she explained.

    According to Béliard, digital sampling is key.

    “Getting the product in consumer hands for trial and embracing online strategies will help brands stay relevant,” he said. “Store closures just reinforced the online experience, and value of the consumer journey being truly omnichannel across all touchpoints. To replace the in-store experience, social selling recreates the 1-on-1 consultations that consumers are used to.”

    Béliard wouldn’t comment on specific numbers, but noted that Estée Lauder is expecting a continuation of the increase in online shopping as consumers navigate the new in-store experience.

    “The overall recovery curve for the fragrance category has looked positive, and holiday has always been a key moment for fragrance sales,” he observed. “We expect strong holiday traffic given the numerous gifting propositions that make fragrance so desirable this time of year.”

    What consumers want is shifting too, due to the pandemic. For years, gift-givers have eschewed actual gifts in deference to “experiences.” But now, with travel out, gyms closed, and theaters and restaurants struggling, there may be some actual gifts to unwrap this holiday season. Jensen noted that the industry already received a bump in sales during Mother’s Day and Father’s Day, a similar increase could be in-store for Holiday 2020.

    “It is a golden opportunity for gift-giving,” she asserted. 
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