Go Global for Growth
Fine fragrance sales are up in many regions, even as sales of women’s fragrances
slump in the U.S. But fragrance packaging suppliers have some ideas on how to
create excitement on department store counters and mass market shelves.
WOMEN’S FRAGRANCE sales may be faltering in
the U.S., but the men’s category continues
to post modest gains. On the global level,
both women’s and men’s sales are on the
upswing. No wonder, then, that the fragrance industry is set to roll out dozens of
new scents throughout the world this fall,
even as sales in the U.S. stall.
What’s more, with the economy heading
south and not expected to pick up until at least mid-2009,
marketers are releasing all of these fragrances at a time
when many consumers insist that they are cutting back on
nonessentials. Of course, industry observers have long noted
that in tough economic times, women turn to beauty products as a less expensive option to a new wardrobe.
The U.S. fine fragrance industry could certainly use a
spritz of new users. According to Kline & Co., retail sales of
men’s fragrances rose an anemic 0.1% last year to $1.8 billion, while sales of women’s fragrances fell 0.4% to $4 billion. Still, even a little growth is better than a decline.
“The men’s segment is a growing market for fine fragrance. The men’s range is getting wider and wider. We can
see now an increased number of flankers, including aftershave with the same look,” said Julie Vergnion of Rexam.
“This is following the trend that men’s product lines are
catching up with women’s ones. Travel retail/on the go products is showing nice growth as well. We see this as a mega-trend that we call ‘nomadism.’”
The Rollouts Continue
More good news is that, on the global level, men’s fragrance
sales jumped 6.7% to $11.5 billion last year and women’s
scents were up 5.8% to $20 billion, according to Kline & Co.
Though the calendar says August, marketers are getting
ready to roll out an array of new scents in plenty of time for
the all-important holiday selling season. For example, Karl
Lagerfeld will introduce Kapsule, a trio of unisex scents for
Coty this fall. The square-shaped bottles are said to evoke
the designer’s love of geometry.
Shiseido, too, selected a square-shaped bottle for its new
Zen fragrance, which debuts next month in U.S. department
and specialty stores. The scent is a lighter version of the
original Zen fragrance, which has been available since 1964.
From Europe comes B Spot, the newest fragrance from
Benefit Cosmetics. It’s just the second scent from the LVMH
division, but company executives say it’s part of a strategy
to create a $400 million global brand by the end of the year.
In other new fragrance news, this month Parlux is rolling
out Fancy Jessica Simpson, a floral oriental fragrance aimed
at women ages 15 to 35.
For a more mature audience, Ralph Lauren is releasing
Notorious, a sister scent to the brand’s top-selling Romance
fragrance. Notorious is an oriental fragrance with an art
Creating Different Looks
Sales from Shanghai to Saigon may be soaring, but the U.S.
market continues to limp along. In these tough retail conditions, made worse by the quasi-recession, marketers must
find new ways to attract consumers to their fragrance counters and often that requires unique packaging concepts.
“Fragrances need to be differentiated and unique packages will accomplish this task,” said Steve Nussbaum of
O.Berk. “If the consumer likes the fragrance, he or she will
Brad-Pak supplies the .25oz. frosted square bottles for Juicy
Couture, which also used the same bottle for Viva La Juicy.