Fragrance launches have been the lifeblood of the European fragrance market, but this strategy is failing to translate into sales growth. It begs the question: does it make sense for fragrance companies to invest in such big launch programs? There is much to celebrate in fragrance, though, with many interesting niche brands catching consumers’ attention and some truly innovative design concepts.


NPD Group valued the total 2015 European fragrance market at about €5 billion ($4.57 billion at historical exchange rates), with growth of just 1% year on year. France is the biggest market at $1.7 billion, but sales are flagging, down 2%. One bright spot is Spain, valued at $640 million and rising 6%.


Ladies Lead


Women’s fragrances account for two-thirds of European sales, but new launches have failed to make an impact. According to NPD, sales of new women’s fragrances declined 9%. The picture is different in the men’s category, where sales of new launches rose 47% in 2015; however there have been far fewer new fragrance brands, flankers or limited editions in the men’s fragrance sector. Furthermore, NPD data reveals that in the total European fragrance market, new launches represent only 6% of fragrance sales in Spain, 10% in France and Italy, and 12% in the UK.


Commenting on the oversaturation of brands in fragrance, which is happening globally and not just in Europe, Michael Edwards, author of Fragrances of the World, noted that it is extremely hard for new brands to stand out from the crowd.


“Much of it is opportunistic. It’s impossible to expect the industry to come up with more than a few memorable new brands every year,” he asserted.


According to Edwards, the number of new launches in Europe and North America topped 1,000 in 2014 and this trend has been ongoing for some years.


Familiar Fragrances


Fragrance is used widely by European women, with more than 60% of French, Polish and Spanish women applying fragrance regularly, according to Kantar Worldpanel. French women are known for their sophistication, with 40% of them more likely to go for the more intense and more expensive eau de parfum versions, whereas Polish, Russian and Spanish women favor the lighter eau de toilette. How women wear fragrance differs by country, with French, UK and Spanish women more likely to apply it behind the ears, Polish women prefer to put it on the wrists and Italians like to use it all over.


When choosing fragrance, 42% of European women go for familiar, traditional scents, which explains the disappointing uptake of new brand launches, according to Canadean research. Only one in 10 European women often experiment with new and unusual scents. However, 48% of European women sometimes like to try something new and different, especially the Germans or Italians.


New Ways with Fragrance


Packaging is a key way to attract consumers’ attention; it is used to suggest luxury or to reach a specific target, such as younger audiences. One of the most audacious examples comes from Moschino Fresh Couture, whose packaging is inspired by a cleaning trigger sprayer bottle. The manufacturer described the concept for the fragrance as juxtaposing the most mundane and commonplace of all products with something so precious—the juice of a luxury brand’s fragrance.


“The idea represents an innovative positioning for a perfume and may stimulate more intense activity towards packaging design going beyond traditional bottle types,” said Maria Fernandez, innovation researcher, Canadean. “Similarly, it highlights how brands can take inspiration from other categories to influence packaging design.”


Wearable fragrance is a natural progression from wearable technology. Worn on the wrist, a perfumed bracelet enables consumers to wear their preferred perfume in a sophisticated way. Italian brand Armida Touch claims to be the world’s first fragrance bracelet, offering a hybrid between perfume and jewelry.


“This fashionable approach represents a new twist on the on-the-go trend,” commented Fernandez. “Taking portable packaging to the next level, this wearable is designed to act also as a trendy accessory, elevating the product packaging to a real fashion accompaniment.”


The bracelet has a refillable reservoir with a spray nozzle that sits on top of the bracelet available in a variety of colors.
“Here the perfume carrier is as important as the fragrance itself. It may encourage…even stronger connections between jewelry firms and fashion brands with perfume manufacturers,” said Fernandez.


Not for the Masses


Many women dream of having their own personal fragrance, but the cost of a truly bespoke brand is beyond the reach of the majority. For example, UK perfume designer Azzi Glasser has partnered with Harvey Nichols department store to offer a bespoke fragrance service costing $21,000, which includes private consultations at the perfumer’s studio.


Personalization is a trend gaining ground in many beauty sectors, but has hardly touched the fragrance business. Jo Malone pioneered the concept of combining fragrances for its scents, which can all be layered to create something bespoke. A new idea comes from UK brand The Blend. The Custom Fragrance Blending Mini Kit consists of four rollerball bottles of pure fragrance oils (amber vanilla, tropic bloom, clean musk and citrus musk). “Recipes” are provided or consumers can create their own combination.


“In the competitive fragrance sector, new perfume launches need to stimulate senses and captivate shoppers, thus there is not a better way to offer that than with a unique and individualized scent…that makes consumers feel unique and special,” observed Fernandez.


It was only a matter of time before the hugely influential beauty bloggers moved into fragrance with brands bearing their name. YouTube beauty blogger, Zoella, and the owner of a vlogging channel followed by more than nine million subscribers, has launched a solid perfume as part of a range of beauty and household products. It certainly seems to make sense when seen in context of Canadean’s global Q4, 2014 survey, which revealed 18% of global shoppers think online blogs and positive reviews make a beauty product trustworthy.


Achieving growth in the European fragrance market is likely to remain challenging, but putting innovative concepts and packaging at the heart of any fragrance strategy will help brands engage with consumers.

---

Imogen Matthews
Headington, Oxford UK
Tel: +44 1865 764918

Imogen Matthews is a respected consultant, journalist and researcher focusing on trends in the beauty industry. She regularly contributes to many of the world’s foremost beauty trade titles. Every year in April, she publishes The Premium Market Report, focusing on trends in the UK premium beauty markets.
www.thepremiummarketreport.com