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    Perfumes - Luxury Goods and Services

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    Nitika Kapoor
    1. Chanel No. 5 - Created in 1921 by Ernest Beaux, it was one of the first perfumes to feature synthetic ingredients like aldehydes. Coco Chanel wanted a scent that was youthful, modern, and hinted at luxury. It became a global bestseller. 2. Dior J'adore - Launched in 1999, it was meant to embody the ideal of "love, happiness, prosperity, and harmony." The heart notes of ylang-ylang and jasmine give it a romantic floral scent. 3. Guerlain Shalimar - Inspired by the

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    Perfumes - Luxury Goods and Services

    Uploaded by

    Nitika Kapoor
    36 views19 pages
    1. Chanel No. 5 - Created in 1921 by Ernest Beaux, it was one of the first perfumes to feature synthetic ingredients like aldehydes. Coco Chanel wanted a scent that was youthful, modern, and hinted at luxury. It became a global bestseller. 2. Dior J'adore - Launched in 1999, it was meant to embody the ideal of "love, happiness, prosperity, and harmony." The heart notes of ylang-ylang and jasmine give it a romantic floral scent. 3. Guerlain Shalimar - Inspired by the

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    Perfumes - luxury goods and services

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    1. Chanel No. 5 - Created in 1921 by Ernest Beaux, it was one of the first perfumes to feature synthetic ingredients like aldehydes. Coco Chanel wanted a scent that was youthful, modern, and hinted at luxury. It became a global bestseller. 2. Dior J'adore - Launched in 1999, it was meant to embody the ideal of "love, happiness, prosperity, and harmony." The heart notes of ylang-ylang and jasmine give it a romantic floral scent. 3. Guerlain Shalimar - Inspired by the

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    36 views19 pages

    Perfumes - Luxury Goods and Services

    Uploaded by

    Nitika Kapoor
    1. Chanel No. 5 - Created in 1921 by Ernest Beaux, it was one of the first perfumes to feature synthetic ingredients like aldehydes. Coco Chanel wanted a scent that was youthful, modern, and hinted at luxury. It became a global bestseller. 2. Dior J'adore - Launched in 1999, it was meant to embody the ideal of "love, happiness, prosperity, and harmony." The heart notes of ylang-ylang and jasmine give it a romantic floral scent. 3. Guerlain Shalimar - Inspired by the

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 19

    Luxury goods and services

    KSF in Perfume industry

    Session – 1
    Agenda
    All about perfumes

    Business Size

    Key success factors

    Emerging trends
    What does luxury fragrance means?
    High quality
    materials

    Performance
    (longevity)

    Storytelling

    In store
    experience

    Customer
    education

    Personalized
    service

    Customization
    All about : Perfumes
    Perfume Definition

    • The word perfume used today derives from the Latin per fumum, meaning "through
    smoke”

    • Today perfume is a lucrative business where a brand image can be created out of an
    emotional advertising campaign. No other product is so strongly related to emotions
    and feelings as perfume.

    • An unforgettable smell can remind you of a special situation for your entire life. This
    is why many luxury brands like Dior or Chanel are producing most of their profit from
    fragrances, the “cash cow” business.

    • As a customer, even though you cannot afford a 3000€ dress from Dior, you can always
    afford 50-100€ for a fragrance and taste a piece of the luxury dream.
    All about : Perfumes
    Perfume Notes

    Perfume is also described in a musical metaphor as having three sets of notes, making the
    harmonious scent accord :
    • Top notes (head notes): perceived immediately on application enabling initial impression of a
    perfume
    • Middle notes (heart notes): unpleasant initial impression of base notes, which become more
    pleasant with time
    • Base notes (deep notes): bring depth & solidity to a perfume. Compounds of this class are
    typically rich and "deep" and are usually not perceived until 30 minutes after application
    All about : Perfumes
    Perfume : Application

    • Conventional application of pure perfume is at pulse points, so


    that the pulse point will warm the perfume and release fragrance
    continually where as the modern perfume industry encourages the
    practice of layering fragrance so that it is released in different
    intensities depending upon the time of the day.

    Perfume : Association

    • Perfume is strongly related to emotion and feelings of a person


    which is used to convey personal identity (personification)
    Business Size : overall market
    A fragmented and hyper segmented market – Perfumes

    Revenue in the industry is forecast to reach an estimated Euro 24 billion in 2018 with a
    CAGR of 4% over the next five years (2018-2023), highly influenced by increasing demand
    in Asia Pacific
    Business Size : overall market
    Many segmentation criteria
    Classic Vs Fashion fragrances

    Designer Vs Niche fragrances

    Emotional statement for women archetype (seduction Vs


    elegance)

    Scent (flowery vs spicy vs fruity vs light vs heavy)

    Notes (Top notes : head notes; Middle notes : heart notes;


    Base notes : deep notes)
    Business Size – prestige market
    Worldwide luxury goods market by category

    Innovation and new launches : growth levers of beauty


    Key success factors
    Multinational, multibusiness and multibrands companies
    with global brands & local strategies
    Product: Strongly related to emotions and feelings
    Pricing: related to the image of the brand
    Communication: global image (managed by HQ) but glocal
    advertising
    Distribution: international and local (trade marketing activities
    growing in importance)

    80% of selective markets hold by 8 players: Estee Lauder, l’Oréal,

    LVMH, P&G, Chanel, Shiseido, Coty, Clarins


    Key success factors
    • Newness drives the industry
    Main source of perfume revenues for designer brands
    Perfumers now bring more than 300 new scents to market every year - more in a
    single year than the total number of new fragrances introduced in the 1970s and
    1980s combined, nevertheless classic scents account for 40% of total US dept
    stores sales
    Trend towards in-house control (LV, Burberry…) and made-to-measure scents
    https://www.fredericmalle.com/
    Key success factors
    Importance of R&D
    Specialized solution providers for cosmetics and
    fragrances https://www.youtube.com/watch?v=zRe0sLIZul0
    Key success factors

    Distribution sets positioning


    Mass
    Selective
    Direct sales
    Concept stores/fashion stores
    Spa
    Internet
    Travel related
    Trends
    Innovation
    Multisensory and strong products with emotional touch
    Cross market development
    Increasing use of natural/organic ingredients
    Specialized perfumeries become more desirable
    Rise of new and original retail concepts

    New segments
    Men
    Emerging markets
    Millennials

    A mass market industry but… a tendency to niche and distinction


    Niche and local brands and tailored services
    Trends
    • New Channels gaining ground
    Rise on e-commerce

    Emotional drivers
    Link between smelling good and confidence
    Consumers remain interested in quality despite the effects of the
    recession
    Trends
    Importance of Branding
    Fragrance manufacturers need to recognize the 'experience
    economy'
    Frequent fragrance users typically seek products that are both high
    quality and of a reputable brand

    Product choice depends on indicators


    Fragrances are used on a daily basis
    Sensory and value considerations are driving fragrance purchases
    in the majority of markets worldwide
    Consumer Motivation: improving desirability, personal happiness
    and professional advancement

    Ethicality and the use of Natural Ingredients


    Growing demand for natural / organic products in most countries
    Top 10 women fragrances (2012)
    Top 10 men fragrances (2012)
    Exercise
    You will have to research on the iconic perfumes of different
    luxury brands and find how that perfume came into existence
    (story telling)

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