Alcone Marketing Group – Consumer Lab

The Consumer Lab is the consumer insights and brand strategy group at Alcone Marketing Group, a consumer activation company.

Why the Perfume Business Is Beginning to Stink

More than 200 new prestige perfumes–those sold in department stores and
cosmetics shops, rather than drugstores or supermarkets–were unveiled in the
U.S. in 2006, according to NPD Group. But sales of these high-end
perfumes–which make up 60% of the overall fragrance market — have been
slowing. Total revenue is expected to grow less than 3% globally this year,
according to Euromonitor, while the overall luxury goods sector is up by about

The reason is olfactory overkill. To lure consumers, perfume brands
have mounted huge advertising and distribution campaigns, selling perfumes in
their own boutiques as well as in department stores and airport duty-free shops
world-wide. They have also kept prices low; while high-end leather bags and
sunglasses have steadily risen in price, most designer perfumes still cost less
than $100.


Why the Perfume Business Is Beginning to Stink –
PARIS — After years of gorging on celebrity scents and fashion-house fragrances, consumers are turning up their noses at designer perfumes.

“The offer is so enormous, you get lost going into a perfume shop,” says Daniela Andrier, a perfume-maker at Swiss fragrance company Givaudan SA. “It’s like eating off a plate with too much food and you lose your appetite.”

Over the past few years, exclusive fashion brands such as Prada, Gucci and Hermès have been churning out new fragrances as a way to ensnare consumers who can’t afford their $5,000 bags, but will splurge on a $100 bottle of “eau de toilette.” Celebrities such as Jennifer Lopez and Celine Dion have also unveiled eponymous fragrance lines.


Filed under: advertising, Consumer, Fragrance, living target, luxury

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