De Sousa Manon - Kazemi Mahtab - Lin Mingming - Niklaus Eloïse - Skema business school
PERFUME INDUSTRY
Market overview
According to Statista, the global size of the perfume market has been estimated at 43.9 billion US dollars in 2019 and is expected to generate 45.2 billion US dollars in 2020.
We expect a CAGR (compound annual growth rate) of 5.5% between 2020 and 2025 (according to Mordor intelligence).
Luxury, exotic perfume and personal grooming are the main reason of the growing tendency of the market.
Major brands in the market: Avon product, Natura Cosmtics, Channel, LVMH, L’Oréal Group, Estee Lauder.
Why is it an interesting market to look at in a brand strategic point of view
The market is boosted by innovative advertising solution. In the perfume market, marketing and communication have a crucial role, companies invest a lot in promotional activities and are using a lot of techniques such as brand endorsement, using social media etc. It will therefore be really interesting to look at those different technique to see how the brand management is done in that market.
There is a tendency for the companies to focus on digital platform. It will be interesting to look at how companies are dealing with that subject, how do the promote their website and what impact does it have on their brands. And in fact, in 2018 the online distribution channel represented 70% of the global market sales (according to grandviewresearch.com).
Tendency of focusing on natural fragrances. It will be interesting to look at how the companies are advertising in this field.
Need to adapt to the new generation of consumers, the "millenials", representing a large proportion of consumers of beauty products and perfumes (radical change in communication codes and traditional sales channels).
LANCÔME
Lancôme is one of the Mondial leader of the luxury beauty market. It has been created in 1935 by Armand Petitjean. Today this brand is part of L’Oréal group. The brand proposes 12 iconic perfume for women and only 1 perfume for men since women are their main target. According to Forbes, the brand value is up to 10.4 billion US dollars. Writer for the brand: Manon!
JO MALONE
Inception in 1983 by Jo Malone, the products are mostly the scented candles and perfumes, but also bath, body, shampoo products. It was purchased by group Estée Lauder subsequently in 1999. The brand is characterized by its simplicity, personalization, and high quality. Inspired by modern British culture and positioned as bespoke luxury perfumery, the brand places enduringly the forefront within its competitors. Writer of the brand: Mingming!
DYPTIQUE
Diptyque is a French brand known for its scented candles and perfumes. Both its fragrances and its designs are original and evocative, making Diptyque one of the most recognizable brands straddling the niche and luxury markets. The company was founded in 1961 by three artist friends, Christiane Gautrot, Desmond Knox-Leet and Yves Coueslant, who opened a shop in Paris. Today, the brand has a large sales network with 1,200 points of sale in 45 countries, including 70 of its own boutiques. Special feature of the brand: in order to make a name for itself, the brand follows an historical rule of zero advertising, favouring other promotional methods. Writer of the brand: Eloïse!
FRAGONARD
A local perfume factory based on the concept of selling perfumery products directly to the tourists in 1926 in French Rivera. This spirit has been loyally perpetuated by the three succeeding generations who have run and are still running the company. At their instigation new production plants and sales outlets have opened in Grasse, Eze and also Paris. Writer of the brand: Mahtab!