Buyers sniff out scents of life in fragrance category

Drug Store News, June 18, 1990

Buyers sniff out scents of life in fragrance category

For the first time in a long time, many drug chain buyers are reporting growth in the fragrance category.

Although some chains say that Mother's Day sales were unexpectedly disappointing, others report their overall fragrances sales for the year are up anywhere from 5 percent to 10 percent.

Buyers attribute part of the growth to improvements in merchandising and presentation as well as to expanding their product mix to include a broader representation of department store brands, including diverted brands like Red, Uninhibited and Passion.

Hot launches

Most buyers also say that some of the newest mass market launches like California, Aspen, Dare, Electric Youth and Ex Cla Ma Tion, have also done very well this past year, with Ex Cla Ma Tion still continuing to be named as the best of the new launches.

Now expectations are high that more new launches will make this Christmas an even better selling season than last year.

Most buyers are positive about Coty's upcoming launch of Preferred Stock for Men, Factor's California For Men, Quintessence's Aspen for Women, and Revlon's Unforgettable (for women). The reaction to Shulton's upcoming launch of Sante Fe for Women, and MEM's Fathom (for men) are a little more subdued, but still hopeful.

Several buyers describe Coty as the best fragrance house in the mass market industry, with marketing expertise that has made Stetson and Lady Stetson the leaders in their class and Ex Cla Ma Tion one of the best new product launches of recent years.

"Coty has the follow-through to make things work out," says the cosmetic buyer for a major West Coast chain. "And if something doesn't happen to work out, as occasionally it can, they take care of it."

"They have a great record and they spend money," says a source for one of the industry's top five chains. "Preferred Stock will have a higher than average price point, but I think it will sell."

High on California

Optimistic expectations are also being voiced for Factor's California For Men, but with some reservations. Some buyers think it may do even better than California because, as one reasons, "it should appeal to men even more than California appealed to women, because it's macho and sporty, and men are more into surfing and tanning and all the other ramifications of the California scene."

One buyer thinks the launch may suffer a little because he perceives that the popularity of the line's signature spokesperson, actress Jaclyn Smith is waning, but even this source believes it should do well if Factor supports it as promised.

Aspen for men was a good launch and so was Qunitessence's launch of Dare, which preceded Aspen. So, given the company's track record, buyers feel Aspen For Women would at least be a decent launch, and possibly one that could exceed expectations.

Sante Fe For Women and Fathom are more of a question mark, according to buyers. Sante Fe for men has had a relatively slow build in many chains, and buyers wonder how much of a demand there will be for a companion brand for women.

Some are also afraid that there might not be enough advertising behind either Sante Fe or Fathom to support the launch.

Buyers had similar reservations about Revlon's launch last year of That Man. They were afraid Revlon wasn't prepared to spend enough on advertising to support the launch, and they felt the name was too vague.

So far, their fears have been realized. That Man, has not sold well, according to buyers in the chains we talked to.

Unforgettable launch

Now, however, many buyers think Revlon has learned a lesson and there is a more hopeful feeling that Unforgettable will be a good launch. Revlon has promised to spend $7 million to support it and buyers say if they do that and if the scent is good, Unforgettable should do well.

Some buyers are concerned, however, that the price point may be too high for many drug store customers.

So far, the strongest launch of this year has been Cover Girl's Navy. Most sources say Navy has been selling well in all stores. Prince Matchabelli's Luna Mystique has been a good launch, but, for most chains, not as strong as Navy.

This year with more drug chains stocking designer scents, the growth in alternative designer fragrances has gotten even softer. Buyers say the category has peaked and chains have pared back to the brands and lines that turn the best for them.

Primo is still in just about everyone's planogram, but some of its sister brands like Ninja are under review in some chains and may ultimately be eliminated.

After Parfums de Coeur, which makes Primo, there are only a few companies that buyers mention frequently as doing well for them. They are Deborah with Sensational Scents, and Delagar with Mystic Impressions and Classic Match.

One chain, however, reports "blowout sales" for a line of ADFs made by a company called Jean Phillipe. The price point is $2.99 and the source says that each time she features them, they sell through in weeks.

PHOTO : Food chains such as Vons Pavilions are adopting more department store sales techniques to