BW Confidential - Issue #15 - September/October 2013 - (Page 32)

Insight: Fragrance creation Industry views Executive word Fragrance house executives share their views on the state of the business and how they see the market developing by Alissa Demorest “After a robust final quarter in 2012, the first quarter of 2013 was challenging, despite strong new business and continued growth in Latin America. From a market perspective, developing countries continue to see the strongest growth. The greatest challenge to the industry is the fragmentation of the fine fragrance market, which means that products must stand out to cut through [the clutter].” Givaudan global head of fine fragrance Felix Mayr-Harting “The drivers are developing markets and mainly Brazil and the Middle East. But in today’s environment, we also need to have a strategy based on segmentation. In each market, you can find pockets of growth—in the US, for example, there are different markets [rolled] into one: varying income [groups], ethnic and demographic groups and ‘traditionalist’ consumers. You just need to adapt your offer to capture these consumers.” IFF vp fine fragrance & beauty care worldwide Christophe de Villeplée “Europe is difficult for fine fragrance and depending on the market is either flat or declining. We don’t have the growth rates that we saw in 2009 and 2010. It started last year and this year we are hunkering down, and I’m seeing the same scenario for 2014. It’s a crisis that may last, as we’re in a mature market, so we won’t see the growth rates that we saw in the 1990s. However, Europe will remain a major fragrance market for a long time. ” Firmenich gm fine fragrance Western Europe Yvan Bagnis 32 “Our main markets are outside Europe and we base our growth and expansion on emerging countries. We are seeing good growth in the Middle East and have an active fine fragrance business there. The future of fine fragrance lies mainly in branded shops. I believe that luxury perfumery brands will [eventually] be present only in their own outlets. The rest of the market will mainly be private label and mass products. I don’t see much future for the middle of the market.” Eurofragance ceo Santiago Sabatés “The beginning of the year has been calm. Europe is not doing brilliantly and the US is a bit of the same— not bad, but nothing to shout about. The challenge is linked to retail and the visibility of fragrances. When the market begins to stagnate, we see that niche brands begin to attract more attention. We can make a difference by creating fragrances that stand out and that will be noticed by the consumer.” Robertet fragrance division president Christophe Maubert September-October 2013 - N°15 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #15 - September/October 2013

Cover
Comment
Contents
Update
Brand & retail news recap
Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Origins, Ojon & Darphin global president and gm Jane Lauder
Insight: Fragrance creation
Category overview
Industry views
Emerging markets
Consumer data
Role of the perfumer
Retail
Store strategy
Store concepts
Digital Beauty apps
Market watch: Chinese consumers
Overview
Shopping habits
Online sales
Radar A profile of six up-and-coming beauty brands
Travel retail: Inflight sales
Sector analysis
Channel innovations
Emerging markets Company profile: Marico
Packaging
Make-up analysis
Make-up innovations
Last word The Young Group’s Karen Young on industry trends and technology

BW Confidential - Issue #15 - September/October 2013