2014-10-22 14:06:25

The Fragrance Foundation Brainstorms Scent Sales

2014-10-22 14:06:25

 Fragrance brands can have a great product launch, but what can they do to follow up? To build demand?

How do they get consumers to come back and buy a second bottle?
Lip gloss packaging.

Robin Burns-McNeill, chairman and co-founder of Batallure Beauty
(Photo Credit Casey Kelbaugh)

With hundreds of fragrances launched each year (nearly $3 billion worth), what makes a scent like Giorgio or Beautiful—or brands like Chanel and Calvin Klein—remain popular for decades, while others fizzle soon after launch?

And how can we create an emotional connection with fragrance consumers?

These were a few of the key topics addressed on September 17, as The Fragrance Foundation hosted its first Executive Roundtable Discussion, titled: “The Fall and the Rise of the Fragrance Industry,” at the French Institute/Alliance Française on 59th Street in Manhattan.

Elizabeth Musmanno, president of The Fragrance Foundation, led panelists Michael Gould, former chairman and CEO of Bloomingdale’s; Robin Burns-McNeill, chairman and co-founder of Batallure Beauty; and Frederic Jacques, VP of Fine Fragrance NA at Takasago in a discussion that ranged from the challenges of growing the business in today’s economy, to the role of mobile and online retailing, to how best to reach millennials.

“The key to doing it right is to build desire and awareness. You have to understand who your consumers are and what media they use, and you have to build an imaginative plan to reach them,” said Burns-McNeill, “There is a lot of sameness out there. Without imagination and courage, you tend to stay in one place. You have to be very agile. You need ‘fast feet.’ ”

Gould took his well-known stance: “The challenge is not in the launch,” he said. “The issue is what we do after. We need to build transactions into relationships. It’s about what creates excitement. People want an emotional connection. There is not a lack of traffic, there is a lack of conversion and a lack of follow-up.” Right now, Gould said the conversion rate is about 33%.

He said foot traffic should not be taken lightly, as "brick and mortar is not going away." He said online sales are currently 6% of retail. 

L-R: Frederic Jacques, vice president fine fragrance, NA at Takasago; Robin Burns-
McNeill, chairman and co-founder of Batallure Beauty; Michael Gould, former chairman
and CEO of Bloomingdale’s; Elizabeth Musmanno, president of The Fragrance
Foundation (Photo: Casey Kelbaugh)

“We need innovation from the bottle to the packaging,” said Jacques. “Are we focusing enough on giving the consumer a reason to buy a second time?”

Jacques also had the opinion that “Maybe it’s time to give fragrance back to the fragrance houses” as, ultimately, it’s the juice that leads to repeat sales.

While all panelists agreed that social media has become extremely important, all age groups must be considered.

Musmanno brought up the fact that millennials now comprise the largest age group in the States—but Gould pointed out that “people 55 years old and older hold the majority of wealth in the country.”

After delving into the importance of scent strips, promotions that create awareness, niche brands, retail placement and the necessity to follow through after the launch, Musmanno ended the evening saying, “Clearly there is an opportunity for an innovative product to stand out.”