Global fragrance sales have been cushioned from the worst effects of the 2008/09 recession, growing by 3% last year to reach US$35bn, according to Euromonitor. One of the most striking features has been the massive de-stocking which occurred throughout the supply chain, from raw material suppliers to consumers. Inevitably there has been decline in some sectors, notably the middle market. Meanwhile, niche luxury has been attracting new consumers, hungry for a new fragrance experience that cannot be found in mainstream retailers.
John Ayres, director of fragrance consultancy Pandora, comments: "Fragrances that do well are the low-priced, high value brands in the mass market, such as So!... and the top luxury, high priced, high value brands like Prada, Guerlain and Chanel. The niche luxury sector appears to have been unaffected by the recession."
One feature of the fragrance markets has hardly changed. Companies have continued to launch new brands, variants and flankers, with 350 already recorded in the first half of 2010, according to Fragrances of the World 2010, by Michael Edwards. In 2009, the number of new launches topped 1,000, equaling those launched 2009. In addition to new mainstream and niche launches, 154 were flankers to existing brands. Michael Edwards' total database lists over 7,000 on the market today.
There may, however, be the first tentative signs of a slowdown in the number of launches. Ayres believes that the recession may have made companies sit back and think about what they are launching. "It was like a scattergun approach before," he says.
Educating the consumer
A frequent criticism of the way fragrance is sold in-store is that the sales staff have little knowledge about what they are selling. Brands such as Chanel and Jo Malone and UK retailer The Perfume Shop have internal training programmes which are regarded as "the gold standard" of the fragrance industry. However, the recession has resulted in many others putting a moratorium on consultant training. Pandora's objective is to work with fragrance companies and "train the trainers", so that new staff understand how best to sell to their customers.
A new approach to fragrance education comes in the form of Givaudan's iPerfumer, a mobile perfume recommendation tool which can be downloaded from the Apple App store. Users can tap in fragrances they like or dislike and the application works out which others they are likely to prefer. They can also find out which perfumes are most liked by other perfumer buyers. Felix Mayr-Harting, Givaudan global head of fine fragrance, comments: "We aim to lead growth initiatives for the fine fragrance category through education."
Fragrance collections: are they the new flankers?
Fragrance collections are a relatively new trend, starting a few years ago at the top end of the prestige market. Armani Privé, Les Exclusifs de Chanel and Tom Ford Private Blend are notable examples of fragrance collections sold only in boutiques and a few selected high end stores. The trend is now trickling down into the mainstream, with fragrance collections launching from Dolce & Gabbana, Marc Jacobs, Sarah Jessica Parker and Mariah Carey.
Roja Dove, fragrance expert and industry commentator sees fragrance collections as a new kind of flanker. "Whereas companies would spread their fragrance launches out over the year, some are now launching them as a collection," he observes. Dove likens the trend for coffee made to each customer's preferred taste eg a skinny cappuccino with cinnamon and extra chocolate on top. However, he warns that the huge number of launches may potentially debase the market. "It depends on how they are handled. Tom Ford and Chanel do it beautifully, but so many new ones all smell similar."
New fragrance accords/note
The leading fragrance creators have invested heavily in capturing scent through the application of headspace analysis. Ayres identifies new creative influences resulting from this research:
- New floral accords, especially based around the hundreds of species of scented orchid
- New exotic notes of rare or endangered woods such as teak, tamboti, hinoki, rosewood and cherrywood
- Gourmand notes such as crème brulée, warm rice, warm milk, fresh bread, coffee and malt whisky
A quirky example of an application of headspace technology is P&G's research at Lord's Cricket Ground which led to the development of a scent collection evoking "the essence of cricket", including the scents of grass, a cricket bat, clean cricket whites and the away players' dressing room.
There has been a return to freshness with green and citrus notes adding a crispness to fragrance. A recent example is A Scent by Issey Miyake.
Gourmand or gustative notes are a continuing influence on fragrance, particularly in the women's market. Examples include Lola by Marc Jacobs, which combines grapefruit, pink pepper, pear and vanilla, D&G's 10 La Roue de la Fortune, containing mandarin, pink pepper, pineapple, vanilla and patchouli and Ricci Ricci by Nina Ricci, based on rhubarb, patchouli and sandalwood.
Oudh is an ingredient used in Middle Eastern perfumery, where is it part of everyday life. Recently, it has started appearing in high end western brands, such as Tom Ford Private Blend Oud Wood. "Oudh is now entering the mainstream as classical companies try to reposition themselves as 'cool'", maintains Dove.
Woody accords have traditionally been associated with men's fragrance, but are increasing in popularity in women's. In 2008, Estée Lauder launched Sensuous, a woody amber, created by renowned perfumer Karyn Khoury. This summer, the company launches Sensuous noir, which takes the woody accord into a new direction. One of the three distinct facets of the fragrance is the seductive accord, which combines amber, a crème noir accord {chocolate and vanilla notes}, a richly faceted patchouli and spiced lily. Then Khoury created something truly original at the heart of the accord: the Melted Woods NaturePrint accord. The concept was borrowed from furniture technology where woods are fused at high temperatures. In Sensuous Noir, it gives the fragrances a highly original woody signature.
Source: specialchem4cosmetics.com