Luxury Brands Develop Sideline To Perfume Market

Luxury brands are pouring money and effort, trying to win more customers with palm sized perfume.

Hermes, Dior and other traditional perfume players will naturally push forward new products without delay. Small brands such as Loewe, Christian Louboutin and Gosha Rubchinskiy have also released their latest fragrances.

After 70 years, it suddenly returned to the perfume market.

"We see the great potential of perfume."

Louis Vuitton CEO Michael Burke explained to New York Times.

It's not easy to get a slice of the market in a competitive market.

In order to acquire perfume capital, the Les Fontaines Parfum e es of France's Glass, and invited "perfume nose" Jacques Cavallier Belletrud to steer, Louis Vuitton poured hundreds of millions of dollars.

Reuters analysis said

The main business has been frustrated for 3 years, and it is reasonable and timely to use perfume as a response.

In the face of negative effects of global travel fever, currency exchange rate fluctuations and frequent terrorist attacks, fragrance products are highly resistant to stress.

In the first half of this year, France

The profits of giant LVMH fashion and leather goods fell by 1.8% over the same period, while the profits of perfume and cosmetics increased by 9.2%.

Analysts believe that the first year of Louis Vuitton perfume will contribute 60 million -8000 retail sales to the brand in the first year.

LVMH's recent third quarter report confirms this argument.

In the three months ended September 30th, the revenue of group leather and fashion department increased by 5% compared with the same period last year. Louis Vuitton perfume was regarded as a growth point and was included in the earnings report.

Although perfume is not the main business of luxury brands, it is usually placed in a key position.

As early as 1960s, the product tentacles extended to the fragrance field.

With the licensing agreement, perfume recorded an annual revenue of $1 billion in 1988.

Nowadays, almost all the luxury brands that call their names have the same perfume, most of them are working with professional fragrance and fragrance company, such as Cotti (Coty), FM and Chiverton.

The importance of fragrance products has become increasingly prominent as sales in the industry have entered a period of slow growth.

Two months ago,

In an interview with fashion magazine Another and the British telegraph, Miuccia Prada, founder of the first time, talked about perfume for the first time, in order to promote Prada's new products L 'Homme and La Femme.

According to the Prada 2016 interim financial report, the Group recorded a net profit of 1 billion 554 million euros in the half year ended July 31st, down 14.8% compared to the same period last year.

The net sales of direct outlets decreased by 17.8%.

Although the royalty rate accounted for only 1.3% of the total revenue, the revenue generated by the company increased by 7.9%, mainly from the first Miu Miu perfume on last July.

According to data from market research firm Euromonitor International, global sales of top perfumes are expected to reach US $29 billion in 2016.

As of 2020, annual 3%-4% growth is expected.

In terms of revenue figures alone, it is difficult for fragrance products to compete with main businesses, such as leather goods and fashion.

From the Hermes earnings report, the proportion of fragrance series in revenue is roughly stable at around 5.6%.

LVMH has a higher proportion of cosmetics and fragrances, about 13.5%.

But in addition to creating revenue, perfume products are also a good tool for marketing.

Edward Nardoza, editor in chief of the magazine, said in an interview with interface news, "the contribution of perfume and makeup products to the financial sector is not great, but they can effectively improve brand identification."

Luxury brands do not expect perfume to make a lot of money. Its deep role is to attract customers.

Behind the scenes is a psychological battle.

Compared with garments and leather goods, the price of perfume is usually only 1/10 of that of the former, so the middle class has stepped into the luxury door.

Moreover, as an intangible commodity, it is more convenient for brands to shape dreams and convey emotions.

"Once we succeed in capturing the psychology of consumers, we can gain trust and loyalty."

Michael Burke, CEO of Louis Vuitton, is optimistic about expectations.

However, the ranking of perfume market is not so good.

Perfume nose Jacques Cavallier Belletrud once deployed Lssey Miyake's "L Eau d Issey" of life, Dior's "midnight flower" (Midnight Poison), Lancome's "bright (Magnifique)" and other classic works.

"The most sensitive noses in the world are concentrated in this town, seemingly calm and serene, but the competition is fierce," he said in Glass's perfume laboratory.

This southeastern French town began large-scale incense in seventeenth Century, and Glimard, Chiris, Roure and other spice and fragrance enterprises have risen here.

In 1919, Chanel, Dior, Hermes and other important customers came to Glass regularly to purchase Provence rose and jasmine every year.

Before World War II, the output of flowers was as high as 5000 tons.

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The fragrance office across the corridor is the seat of Fran OIS Demachy.

He is a LVMH other luxury brand Dior perfume.

This spring, Dior set up its own studio in Glass, Ch teau de La Colle Noire.

Obviously, it is also ready to make a big effort in the perfume market to consolidate its brand position.

After years of development, the industry as a whole has become saturated - not just the number of brands, but also the homogenization of products.

Although hundreds of new products are produced every year, they can be remembered by consumers.

According to NPD market research, 4 of the 5 most popular women's fragrances in 2015 were released more than 10 years ago, including the 94 year old Chanel 5 perfume.

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There are two main reasons why a brand launches Perfume: long term profit, or facing the industry competition.

"The success of the former is Chanel's No. 5 perfume," said Al Ries, chairman of Ries & Ries, an American consultancy.

Just in

Before the perfume was released, Chanel first released the new version of No.5 perfume, "water of No. five (No. 5 L" EAU).

Its creator, Chanel's new nose Olivier Polge said, "the new version is even younger."

It is not difficult to find that this old French brand is being kept close to young people.

In recent seasons, Chanel has set an important seat for Lin Yun, Lily-Rose and other Z generation stars.

This year Chanel held the "Paris in Rome" press conference in Beijing. The president of the global boutique department Bruno Pavlovsky sat at the same table with Ouyang Nana, who was born in 2000.

Those twill soft jackets, pearl accessories and small black shirts, which were famous for decades ago, are quietly changing to suit the younger market.

After setting the goal of being younger, luxury brands spend $800 million a year on perfumes, advertising, TV, outdoor, shop and magazines.

However, this traditional marketing effectiveness may not work.

A recent industry report by corney showed that more than 1/3 of consumer behavior was to replace empty bottles, and only 6% of respondents were influenced by advertisements.

The brand became more cautious when introducing new perfume.

Distribution channel, appearance design and promotion mode are the key factors to decide whether the brand is fashionable or not.

If there is no exclusive perfume nose as a talk, bottle design can also be an important gimmick in marketing.

Nobel Hall of Fame (FF Fragrance), in addition to selecting the best perfume of the year, will also choose the packaging award.

This year's winning women's perfume is Marc Jacobs's "decadent" (Decadence), the shape is like a beautiful handbag.

Back in a year, Marc Jacobs still won the award by "Daisy dream" (Daisy Dream).

To say next year's war situation, Kenzo is likely to be called a candidate.

Kenzo World bottles on the shelves in autumn will make people turn a blind eye.

Patrick Li made it into the shape of glasses, very recognizable.

Not only that, it belongs to the fashion brand of LVMH, but also a funny and funny advertisement for the new perfume.

American actor Margaret Qualley not only showed a dance skill in front of the camera, but also put on all sorts of strange things.

In choosing sales channels,

Obviously, the cards also have a deeper consideration.

Hermes's collection series Hermessence and Chanel's Les Exclusive are only sold in exclusive stores.

This is to draw a line with those perfumes that can be bought in any market, including discount stores.

In September of this year, 7 Louis Vuitton fragrances were held in the industry.

Marc Newson's cylindrical glass bottle has landed in 180 retail stores worldwide.

At the same time, in order to enhance consumption interaction, Louis Vuitton has also opened Pop-up shops with five benchmark shopping malls, namely, Paris spring, Lok Mar, Harold, Seoul new world department store and Dubai Mall.

You can guess what materials the fragrance technician uses.

The new series of fragrances are priced at 200 euros (100ml, 1476.06 yuan) and 300 euros (200ml, or 2214.09 yuan).

From the price point of view, they are much more expensive than commercial perfume brands, and are closer to By Kilian niche brand.

The latter often follows the wishes of the fragrance maker and is not subject to market interests.

According to L'OREAL estimates, last year the growth rate of the small perfume market was about 15%, while the global perfume market with a production value of about 15 billion euros increased by only 2.9%.

Bain's "2015 luxury industry trend report" also mentions this: consumers are more interested in personalized taste experience than ever before.

To win the pition, Karen Grant, an analyst at NPD group's beauty market analyst, is repositioning young customers.

This means that perfume brands need to be changed from flavor, pricing and packaging.

At the same time, the report also costs, positioning young people also need to reduce the packaging to adapt to their spending power.

Therefore, those who have personality, lower price and love travel perfume will be the winners in the future.

By coincidence, the new shelves.

Perfume provides 10ml's travel suit.

Although the new Louis Vuitton has been tested in friends circles, I'm afraid it will be a while before I want to buy it in Chinese market.

In contrast, Chanel China's fragrance is much faster.

In August 31st, Chanel's new No. 5 L 'Eau directly landed on WeChat platform.

In view of the fact that Dior had tried the water before buying the Lady Dior handbag, there was no pressure on perfume online sales.

According to corney data, perfume business revenue reached $400 million in 2015, accounting for 10% of the total revenue.

If you want to say that the biggest regret in 2016, it may still be Gucci.

After Alessandro Michele took office, he brought Gucci into the new century, and launched several popular single products. Unfortunately, there was a lack of perfume.

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No perfume.

Not long ago, the new clown Jared Leto, who took over Gucci's Snapchat account in the movie "suicide squad", took the crime of Innocence (#GuiltyNotGuilty) as the topic, and created a series of interesting graffiti photos and filming tips for the upcoming release of Gucci's "sin (Guilty)" Eau De Toilette.

But this perfume is essentially a legacy of the former creative director, Frida Giannini.

On the NPD perfumes list, Gucci AI sin was among the top five men's fragrances in -2014 in 2011. It was replaced by Dolce Gabbana, a Italy brand, until last year, and was defeated by the Light Blue of wood fragrance.