Traackr’s Post

In luxury beauty, challenger and niche brands are driving the growth – and the gap between these brands and the traditional legacy players is growing wider. New data from Kantar reveals the extent to which this is impacting prestige beauty in the UK, while this article also explores how adapting to, and surprising consumers is the winning ticket for all 🔥 Thank you to Kantar, WIZZ&CO, The Red Tree, Bvlgari, BIBBI PARFUM, Parfums de Marly for your fascinating insights 💡 https://lnkd.in/eBGP7Vxx

Global luxury brands see financial gains in FY24

🌟 **The BETTER Brand breaks new ground in the fragrance market** 🌟 We are happy to see that the BETTER Brand has been highlighted as a groundbreaking force in the recently published https://lnkd.in/gzu8TyPd report on the Australia Fragrance and Perfume Market! 🥂 As the report outlines, the fragrance market is experiencing significant growth driven by a surge in demand for niche, luxury, and sustainable products. At the BETTER Brand, we're proud to be at the forefront of these trends, offering a range of premium fragrances that not only captivate the senses but also align with the evolving preferences of conscious consumers. Our dedication to sustainability and ethical sourcing has positioned us as leaders in the eco-conscious segment, while our commitment to innovation allows us to craft unique scents that cater to the growing demand for personalized and luxury experiences. As the market continues to expand, we're excited to continue leading the charge in these key areas of growth. This recognition wouldn't be possible without the passion and hard work of our incredible team, the support of our valued partners, and the loyalty of our customers. Together, we are redefining the fragrance industry and setting new standards for excellence. Here’s to continued success and many more milestones ahead! 🚀✨ #TheBETTERBrand #FragranceInnovation #Sustainability #LuxuryPerfume #MarketGrowth #AustraliaMarket #IndustryRecognition

The future looks bright for the BETTER Brand. These industry reports are a valuable tool to help us shape our view of the future. #lookingforward #brightfuture #businessgrowth #sustainablebusiness

Case Study: How To Sell Luxury Perfumes Online. Insights, Gaps & Solutions. Examples of 16 Brands (with visuals) Luxury fashion brands are increasingly expanding into the perfume market and are dedicating more attention to this segment in their marketing activities. 📌Expansion into perfumery is driven by several key factors: 1) Brand extension and loyalty Perfumery allows brands to extend their portfolio and reinforce their identity, creating a holistic lifestyle offering that enhances customer loyalty and brand affinity 2) High margins and profitability The relatively low production costs and high retail prices contribute to significant profitability, with recurring purchases ensuring a steady revenue stream 3) Market penetration and accessibility Perfumes provide a more accessible entry point for customers who aspire to own luxury items but may not afford higher-priced fashion products. This accessibility helps increase market penetration and potentially converts aspirational customers into loyal clients. 📌This case study focuses on selling strategies of parfums with over average price tag, particularly in terms of sizing, and aims to: 1) Explore how luxury brands present perfume 2) Discover and compare the main market practices of selling perfumes 3) Provide recommendations on the presentation of perfumes in e-commerce 📌The case study would be especially beneficial and insightful for: 1) Luxury fashion and jewellery brands expanding into high-end perfumery Brands focusing on high-end perfumery 2) E-commerce executives and beauty professionals operating in e-commerce 3) Marketing strategists 📌The case study includes analysis of strategies of the following brands: 1) Fashion & Jewelry: Cartier, CELINE, CHANEL, Parfums Christian Dior, Fendi, Hermès, Louis Vuitton, Valentino 2) Pro with main focus on perfumery: BYREDO, Creed, Editions de Parfums Frédéric Malle, Guerlain, KILIAN PARIS, Le Labo Fragrances, Maison Francis Kurkdjian *The summary on each brand's policy is also included 📌By analyzing examples from 15 brands, the study offers valuable insights and actionable recommendations for enhancing perfume sales in luxury market, with a special emphasis on effective perfume formats. ** 📌Purchase access to case study: https://lnkd.in/dzruxvex ** #Cartier #Celine #Chanel #Dior #DiorBeauty #Fendi #Hermes #LouisVuitton #Valentino #Byredo #Creed #FredericMalle #Guerlain #Killian #LeLabo #MaisonFrancisKurkdijan Richemont #Richemont LVMH LVMH Fragrance Brands #LVMH Manzanita Capital #ManzanitaCapital The Estée Lauder Companies Inc. Kilian Hennessy #EsteeLauder Kering #Kering Marc Chaya #Beauty #CaseStudy #Luxury #perfume #fragrance #luxuryfashion #fashion #jewellery #loyalty #ecommerce #customerexperience #customerrelations TOM FORD BEAUTY #TomFordBeauty Gucci Versace Trudon Vyrao Rabanne ROJA Boadicea the Victorious Clive Christian Perfume Xerjoff Group S.p.A. Bond No. 9 Acqua di Parma Memo Paris AMOUAGE EX NIHILO PARIS Loewe Diptyque Paris

Luxury brands are reconsidering their approach to beauty lines, weighing the benefits of bringing operations in-house against the complexities involved. This insightful article dives into the challenges and potential rewards, offering valuable insights for brands navigating the ever-evolving beauty industry. #LuxuryBeauty #FashionIndustry #BusinessStrategy

Niche fragrances are high-end, exclusive perfumes created by specialized, often independent, perfume houses. Unlike mass-market scents, niche fragrances focus on unique, sophisticated compositions and high-quality ingredients. They cater to a discerning audience seeking distinctive, artistic, and often unconventional scents. These perfumes are typically produced in limited quantities and emphasize craftsmanship and individuality. Niche fragrance brands prioritize creativity and personal expression over mainstream appeal, resulting in innovative and memorable olfactory experiences. They offer a diverse range of scents that stand out for their originality and complexity, attracting perfume enthusiasts who value exclusivity and artistic expression in their fragrance choices.

100 "Niche" Fragrance Brands 5 Insights 1️⃣ Time of Existence ⌛ ▪ The average age of these brands is 19.3 years. ▪ A substantial 92% of these brands have been established within the last 30 years. Notably, 38% of them emerged in the past decade, reflecting a trend towards specialized products, with favorable social media, E-commerce and economic conditions. ▪ A smaller segment, 7%, entered the market within the last 5 years, while only 3% have a history exceeding a century. 2️⃣ Country of Origin 🌐 ▪ 47% of these brands hail from France, predominantly Paris, underlining its historical influence in luxury fragrances. ▪ Italy follows with 18%, while England and the USA each contribute 9%, and the Middle East accounts for 5%. ▪ Emerging countries like Iceland, Poland, and South Korea are diversifying a market traditionally dominated by established fragrance nations. 3️⃣ Brand Type 🏷️ Niche brands often resonate due to their perceived authenticity. ▪ 23% of niche brands are personal brands, fostering intimate connections with consumers and enhancing brand authenticity. ▪ 7% are heritage brands, and one doesn’t need a real heritage to create the experience of one. ▪ The majority of brands (70%) are concept-driven, setting themselves apart through unique concepts and creative approaches. 4️⃣ Creative Structure 🖌 ▪ A significant 26% of brands employ in-house perfumers, enhancing perceived authenticity and ensuring continuity. This approach appeals particularly to discerning buyers seeking bespoke experiences. ▪ The remaining brands compete for access to perfumers, who, in becoming brands themselves, must also strive to strike a balance between meeting high demand and preserving their creative integrity. 5️⃣ Diversification and Ownership 🎨🗝 ▪ While specialization defines niche brands, there is a growing trend towards eventually diversifying into categories like home and body (54% of brands), often a necessary step for essential growth. ▪ Established brands often expand beyond perfumes as they mature, with some (17%) opting for growth through investment or acquisition, which can help brands fulfill their creative potential but also stifle it. ______ Rather than debating definitions or missing brands, the goal here is to highlight common traits and trends of niche fragrance brands. What else could be interesting to explore about these brands?? #Niche #Perfume #Brand #Insights

The market for fragrances exemplifies why companies should understand their market characteristics carefully rather than assume a certain market structure can or should exist. This recent report from Circana – the company formed by the merger of consumer insights firms IRI and NPD – describes the fragrance market as having a growing luxury end and a growing “budget-friendly” end, but no middle ground. When luxury consumers want to pay less, they trade down in terms of pack size, not quality. As my co-author Arnab Sinha and I point out in our book Game Changer, market characteristics are an essential input to choosing a pricing game and setting a pricing strategy. How much value a company can share depends on the characteristics of its market and how it chooses to play in that market with its competitive advantages. #Luxury #Pricing #pricingstrategy #privatelabel #fragrances

Luxury brands are seizing the opportunity in Fragrance, with Kering set to launch Bottega Veneta fragrance line by the end of 2024 and Coty acquiring the Etro perfume license. Even the Italian home arts house, Fornasetti, is making waves with their debut "dreamlike” fragrance line. This is perhaps backed by the promising market growth. In Q2 of fiscal year 2024, COTY revealed a 15% growth in revenues in prestige fragrance, making the category a pillar for the conglomerate. Similarly, LVMH Group’s 2023 results showcased impressive growth in the perfume and cosmetics business unit, with annual sales reaching €8.27 billion, including a remarkable 10% organic growth in Q4 alone. Moreover, the fragrance market in China presents significant opportunities. The market nearly doubled in size from 2017 to 2020 and is projected to reach $4.73 billion by 2025. However, traditional fragrance houses in the western market shouldn't overlook the potential of local niche brands, such as Documents, to summer, and Mets Season (only to name some). These brands are taking over GEN Z by a storm through its unique creativity and cultural literacy. #FragranceIndustry #Nicheperfume #BeautyTrends #ChinaMarket #GenZInfluence