BW Confidential - Issue #8 - October/December 2011 - (Page 39)

Retailer roundtable Insight: Fragrance Talking shop Four retailers speak out about today’s fragrance market and what they would like to see from brands by Oonagh Phillips & Corinne Blanché Selfridges (UK) head of beauty Jayne Demuro Coin (Italy) beauty & wellbeing category manager Paolo Valerio Marionnaud (France) marketing director F abrice Obenans The Perfume Shop (UK) national advertising & PR manager Michelle D’vaz How do you see the fragrance category performing and what is doing well? JD: Sales of fragrance as a category are doing extremely well at Selfridges across all stores. We have seen a shift in the type of fragrances our customers are buying, which is moving into more niche brands and styles, such as Robert Piguet and Bella Bellissima, both from our connoisseur fragrance area. The launch of the Dior Maison de Parfums in April has supported this rise in sales, as customers are increasingly interested in something unique for the new season. PV: Fragrances have been doing well this year, especially from the established brands, but Coin beauty departments are very strong in the make-up category, and as a consequence fragrances represent only 25% of sales versus 35 to 40% in perfumeries. Still, the fragrance share keeps growing. Among the new products, Bleu de Chanel and Paco Rabanne 1 Million have performed particularly well. Guerlain has done well too because it has been able to communicate the quality of the products and the tradition of the house to consumers. FO: The market has been stable in 2011 in terms of volume, but marked by intermittent surges of growth. We’ve seen products with a coherence in all parts of the mix come onto the market. This has stimulated demand and brought consumers back to the category. There are some interesting new brands launching this year, which may give a boost to the market. Three years ago small sizes and 30ml fragrances began to take on more importance, especially for new launches. They allow consumers to discover the product. MdV: The industry has remained consistent, which is positive in such a tough economic climate. In today’s market people are looking for added value and we find our gifts-with-purchase sell well in addition to our gift sets, which give customers more value for money. We have also seen exciting product innovation from many of our brands. How can brands better do flankers and bring newness to their offer? JD: Seasonal limited-editions always work well for customers looking for newness from their favorite brands. An example is the new Narciso Rodriguez In Colour Summer Collection, which offers a new design and a slight change in scent without straying too far from the original—an easy transition for the customer. PV: Not everybody should do flankers. It is a superficial and tactical recipe. The fans of a brand and collectors like them. Probably only the established brands should launch flankers, although I realize it is difficult to draw the line. FO: The consumer is always interested in newness. However, when a brand comes out with a flanker there is an initial uptick, which quickly dies down, as often the product is not really seen as being that new. But in general, the number of flankers on the market has calmed down a little. Since the crisis, the top-five brands re-focused on their pillars and stopped bringing out so many EdTs or product extensions. There was a strategic move that took place to come out with products with a little more differentiation. Brands can also bring newness, not just in the product, but in the communication and other areas. We are for newness, but not just newness for the sake of it, such as a small difference in packaging or an EdT; this just creates confusion. MdV: It’s important not to do something for the sake of it and to listen to your target demographic. Consumers look for value n n n 39 October-December 2011 - N°8 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #8 - October/December 2011

- Brand & retail news recap
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
- The latest in fragrance, skincare & make-up
- Estée Lauder Companies group president international Cédric Prouvé
Insight: Fragrance
- Category overview
- Retailer roundtable
- Retailing strategies
- Rare fragrance brands
- Launch roundup
- Spa chains
- Spa case studies
- E-commerce
- Store concepts
Travel retail
- Sector analysis
- Hainan & China Duty Free Group
- Retail concepts
- Passenger habits
- Industry experts on harnassing the power of social networks
- Six up-and-coming beauty brands
Market watch: Russia
- Country overview
- Prestige retailing
- Industry viewpoint
- Market outlook
- Sustainabilty
- Trends
Last word
- Buyology Inc president & co-founder Donna Sturgess

BW Confidential - Issue #8 - October/December 2011