Corporate Strategies for Fragrances


Fragrances as a category of beauty and personal care has performed weakly over the past several years. According to Carrie Lenard, Beauty and Personal Care Industry Analyst at Euromonitor International, this poor performance has  dragged down in mature markets. Oru Mohiuddin, Beauty and Personal Care Industry Analyst, states that fragrance manufacturers are trying to restore brand value to products by launching exclusive products. Brands attempting this are:

  • J’adore
  • Michael Kors

Since the recession, revenue for the fragrance industry is down, which means less money to spend on marketing. This impacted what types of fragrances were recently launched – many were  celebrity launches or limited editions.

Companies have recently been investing in successful brands as well rather than marketing new brands. An example of this tactic is LVMH and the Chérie L’eau brand. Brand extensions and new brands have not been as popular – an example of this is the J’lo brand by Coty and it’s extensions, which have declined  year on year.

Some industry insiders are blaming slow sales on the sheer number of celebrity launches and brand extensions, which they believe are over saturating the market and taking the luxury out of buying a fragrance.

Globalization of fragrances is another industry trend. The fastest growing markets for fragrances are:

  • Russia
  • China

Fragrance companies are also trying to diversify their product ranges, delving into color cosmetics and skin care. One of the more recent strategies used by the industry is tapping into technology by using mobile phone applications.

Mohiuddin concludes by stating there are several strategies that must be implemented by fragrance manufacturers  going forward:

  • Innovative product launches
  • Invest in marketing and advertising
  • Regional diversity
  • Spread across other beauty and personal care categories

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