Yes, it’s true. While the news is filled with a growing number of celebrities and clothing designers signing on to launch new, glamorous fragrances, (Justin ie–Taylor Swift—Ungaro— Herve Leger and Lady Gaga, to name a few)… industry trend watchers are significantly less optimistic about the current state of our fragrance union. In an article released earlier this week in CosmeticDesign.com, writer Andrew McDougall cites a recent report by research giant Mintel showing a 5 year decline in fragrance sales within food-drug and mass outlets. Specifically, Mintel found that women’s mass fragrance sales saw a 23 percent decline over the last five years. (Note: Wal-Mart was not included in the study.)
And the situation seems to be an equal opportunity employer, affecting ‘big’ fragrance manufacturers in much the same way. Author McDougall notes that “Coty Beauty, creators of Halle by Halle Berry, Faith Hill, and Calvin Klein… lost $10 million in sales from 2009-10, while Elizabeth Arden Brands, owner of Elizabeth Taylor and Britney Spears fragrances, held on to market share as sales declined by 4.5%”. The article notes shifts in target audience demographics related to aging, and changes in consumer buying preferences as the main reasons for the down-sizing of the fragrance category. However, not all is bleak! McDougall gives kudos’ to a new P&G brand, writing…
“Procter & Gamble is pushing its way to the fragrance foreground by using record-setting and champion sprinter Usain Bolt to represent a line of men’s and women’s fragrances in its Africa-themed campaign for the Puma Brand”.
As a fragrance industry sales and education veteran and avid fragrance enthusiast, I was inspired (by the suggestion of GOOD NEWS) to dig deeper into the details of the deal between Puma and Bain. In an article published this past August in the Guardian.com, writer Anna Kessel reported that Bolt “signed the biggest sponsorship deal in sports history” when he extended his contract with Puma to 2013. “The 24-year-old Jamaican wants to be a legend in his sport…” says Kessel. Puma Chairman and CEO, Jochen Zeitz, is also quoted as saying he believes that “the Olympic and world champion could achieve a similar profile to that of David Beckham”.
All of that proud pontificating got me thinking. McDougall is right on the money with his kudos’ to P&G; this fragrance project has the three tell-tale signs of a success in the making. #1— This is a fragrance launched by a P&G brand (Puma) #2—-The fragrance is branded and sponsored by a “David Beckham type” athletic icon #3—- The icon has been given a Michael Jordan sized contract. Whew! How can it not succeed in a very big way?
What say you? Weigh in… I’d love to hear your point of view.
Blog by J Sikora