The selective perfumery industry is undergoing a significant revolution, transforming the landscape of high-end perfume distribution. Pascal Barragué, an expert and consultant in the beauty and luxury industry, explores how selective perfumery has adopted characteristics commonly associated with mass distribution and discusses the implications of this shift.
Traditionally, the perfume sector in France was considered an exception, with perfumes primarily sold through selective distribution channels rather than mass distribution. However, in recent years, this distinction has become blurred. Selective distribution, including independent retailers and established networks like Marionnaud and Sephora, has dominated the commercialization of prestigious “grandes marques” from the fashion industry, as well as heritage perfumes and potential best-sellers.
Nevertheless, the landscape of selective distribution has changed dramatically. It now shares similarities with mass distribution, such as a wide range of products, promotions, low prices, and aggressive marketing strategies. The increasing number of fragrance launches, including flankers (new variations of existing creations), has contributed to this transformation. These launches aim to stimulate the market, create brand visibility, and attract customers.
Promotions also play a significant role in the selective perfumery industry, with perfumes being the most heavily promoted category. Around 74% of the turnover in selective distribution comes from perfumes that are sold under some form of promotion. To attract hesitant customers, brands have adopted increasingly aggressive marketing approaches. They rely on gift sets, limited editions, and exclusive products to entice consumers. Television advertising, featuring global celebrities, is heavily used to maintain brand presence. However, this advertising tends to be more conventional and less imaginative.
The rise of niche perfumery has emerged as a counter-model to the practices of selective distribution. Niche perfumery brands, such as Jo Malone, Editions F. Malle, and Byredo, have gained popularity outside the traditional channels of selective distribution. These brands often have their own boutiques but also benefit from e-commerce, making them accessible to a wider audience. Niche perfumery brands focus on exclusivity, higher quality, and higher prices. They target connoisseurs who seek to express their personality through fragrance. This stands in contrast to the popular perfumery that characterizes selective distribution.
As a result of this revolution in the selective perfumery industry, major players have had to re-segment their portfolios to compete with niche perfumery brands. They have introduced new exclusive ranges with restricted distribution and higher quality, higher-priced products. The desire for differentiation and a more segmented offering has driven this transformation.
In conclusion, the selective perfumery industry is undergoing a revolution as it adopts characteristics commonly associated with mass distribution. Fragrance launches, promotions, aggressive marketing, and the rise of niche perfumery have transformed the landscape. The desire for differentiation and a more specialized offering has driven major players to re-segment their portfolios. This revolution highlights the importance of maintaining a distinction between luxury and mass market in the perfume industry.
Useful Links:
1. How Zara’s shake-up of the fragrance market is paying off
2. The Future of Scent: How to Survive the Pandemic
