Fragrances in need of a spark

Chain Drug Review, Jan 5, 2009

NEW YORK -- The fragrance business has been going though a rough patch for a while, and although today's economy is no help, it may also provide an opportunity for the category.

Both mass retailers and suppliers need to make beauty shoppers view fragrance as a reasonably priced, gift-worthy item, says a spokeswoman for Elizabeth Arden.

Shoppers have clearly indicated their preference for lower-priced small and trial sizes, and suppliers are offering product to fill that demand.

One niche that has bucked the negative sales trend in the category is value-price body sprays targeted to young men.

When Unilever's Axe brand was first launched, it immediately caught fire, generated a slew of imitators and altered the entire men's fragrance segment.

In an attempt to attract new shoppers to the category, many chain drug and other mass market retailers now display these body sprays in the traditional fragrance section of their stores, which provides the opportunity to educate young men about other options in the category.

In addition, while their sales have slipped a bit lately, celebrity scents are still widely popular.

To that end, category leader Coty Inc. recently added a number of celebrity-oriented fragrances to those already on mass retail shelves.

In the past year, Coty launched McGraw by Tim McGraw, the first scent represented by the country singer, as well as David and Victoria Beckham's Signature for Him and Signature for Her fragrances.

Coty supports all of its celebrity brands, including the successful Celine Dion franchise, with significant advertising.