ABOVE THE STENCH by Shannon Peter

FA S H 3 0 0 0 1 / N e g o t i a t e d P r o j e c t S t a g e O n e

A B OVE T H E S T E N C H How c an n iche p er f u me br ands st and out i n a s atu r ate d market w it hout for fe it i ng t he i r n i che v a lu e s ?

By Shannon Peter

C ON T E N T S 6

Base Notes An Introduction

Methodology The Research Methods

Ghosts of Perfume Past The History

Perfume in the Present Current Context

Olfactory Overload The Fragrance Market

The Cure Niche Perfumery

The Perfumistas The Current Niche Consumer

Popularity Paradox The Niche Issue

Finding â&#x20AC;&#x2DC; T h e On e â&#x20AC;&#x2122; Fragrance Loyalty

Generation Y A New Target for Niche Perfumers

Heart Notes Research Summary

Top Notes The Conclusion

Appendix All the Extras

Strategic Outcomes Utilizing Opportunity

B A S E N O T E S

“A woman that doesn’t wear perfume has no future.” ( Va l e r y i n T o l e d a n o , 2 0 0 9 : 5 5 ) Paul Valery’s quote, made iconic by Coco Chanel, may seem extreme and intangibly materialistic but there’s no denying that as a nation we have grown an attachment to fragrance. 91% of the UK’s adult population use fragrances, 6 in 10 of us, everyday (Mintel, 2013).

than the afterthought of a marketing concept. Their care and craftsmanship reflects their desire to revolutionize the fragrance industry (Le Labo, 2013), spreading the message that perfumery is an art, best expressed through products of the highest quality. They urge consumers to avoid the uni-scented, mass-produced, excessively marketed perfumes of the mainstream in favour of their perfumes: the luxury resulting from their love and labour.

Our demand for scent has created such enormous commercial potential that the shelves of perfume retailers nationwide are filling up fast. From boy bands to budget supermarkets, television stars to taxi drivers, it seems almost everyone is filling ornate bottles with fragrances they hope will adorn the décolletages of the masses.

But it’s a catch 22. Without big marketing budgets, the message of the niche fragrance brands gets lost amongst the white noise of the masses. This poses the question:

With big budgets for advertising and builtin marketing tools such as celebrity faces and designer names, it’s no wonder that Coty, L’Oreal, Estee Lauder and Proctor and Gamble, the four most potent players, dominate the market (Mintel, 2013). These mass-market perfumers have fed the growing olfactory appetite and the shelves have been flooded with fragrances designed for maximum appeal: “sweet coy things that didn’t just sleep with you on the first date but in the first ten seconds...” (Burr, 2007: 158)

How can niche fragrance brands stand out in a saturated market without forfeiting their niche values? Focusing on the female consumer, this report aims to evaluate today’s crowded fragrance market, uncovering the true cost of the commercialization of what was once a luxury product. It will explore the role of niche perfumery, identifying the consumers they have already converted from the mainstream and the reasons they favour the niche offering.

But does quantity equal quality? Niche perfumery, a corner of the industry playing a little harder to get, doesn’t think so.

Considering the issues that increased popularity could create, it will distinguish a key consumer group, to which niche brands could expand their reach, and pinpoint areas of opportunity to fulfill the needs and desires of this demographic. Ultimately, it will utilize these findings to recommend strategies to establish niche perfumery as an indisputable, quality alternative to mainstream commercial scent.

Niche perfume brands, as the name would suggest, are the opposite of the mass market. Smaller, artisanal ventures, unaffiliated to large corporations, their focus is not so much on profit, but more on product. These brands pride themselves on investing time and money into the creation of the original and unexpected, rather

M E T H OD OL O G Y In order to shape the progression of this project, research objectives were created that inspired the sourcing and collection of both primary and secondary information.

P R I M A RY Gaps in the knowledge gained through secondary sources became the target when designing creative ways of gaining primary data.

OB J E C T I VE S

To gain unpublished and informed opinions regarding the fragrance market, email interviews were conducted with established industry experts. Contacts (see fig 2), ranged from perfumers, journalists, publishers, fragrance educators and bloggers. They provided in depth, insightful information otherwise unobtainable through secondary sources, although it could be argued that their passion for the subject could make their responses subject to bias.

-What has led to the fragrance industry of 2014 and what issues are currently affecting the market? -What role do niche perfume brands play within the UK fragrance industry? -Who are the key consumers for niche fragrance brands and who should they look to target next? -What do consumers want from perfume brands and what opportunities does this create for the niche sector? -How could these insights be applied to niche brands in order to engage a wider following without forfeiting their niche values?

The behavior and attitudes of the consumer are of vital importance to answering the research question and therefore, a variety of consumerrelated research methods were implemented. Creativity was imperative in order to gain valid, useful and high quality insights and so innovative channels were utilized. Fig 3. on the next page outlines each research method, evaluating its usefulness.

S E C O N D A RY Market research reports from Mintel, KeyNote and Euromonitor revealed the issue of market saturation and product commoditization. Websites, blogs and books helped identify the role of niche perfume brands as the antidote to the commercial fragrances currently flooding the market. Trend forecasting services such as WGSN and Stylus aided contextualization of the fragrance industry within wider consumer lifestyle, revealing innovations in retail and product and cultural shifts that could have an effect on the perfume market.

Fig 1. Industry Contacts, 2014 9

M E T H OD

SAMPLE

AP P E N DI X

INDUSTRY I N T E RV I EWS

A variety of industry experts

PERFUME L O YA L T Y TIMELINES

30 female consumers aged 16 to 55

I N S TA G R A M HA S H TA G

52 female consumers aged 21-30

FOCUS GROUP

7 female consumers aged 21-26

STORE VISITS

A variety of perfume retailers: department stores, independent boutiques, high street retailers.

P U R P OS E

E VA L U AT I O N

To gain a timely perspective on the inner workings of the industry including innovations and current issues, as well as informed opinions on future predictions.

Although some respondents failed to provide their insights beyond a preliminary email/tweet, the responses received were rich in insightful quotes and provided a detailed insiderâ&#x20AC;&#x2122;s view on the market, helping to analyse the role of niche perfumery and the issues that could arise in gaining popularity.

To understand the fragrance purchasing behavior of various demographics in order to identify a target consumer for the independent brands.

Although very time consuming, this method provided a clear choice of consumers to target who are just beginning to form loyalties to specific brands. However, some consumers, specifically the older ones, found it hard to recall all of the scents they had worn throughout their lives.

To gain visual evidence of what perfumes the consumer group are currently using.

This method was a quick and easy way of collecting data and participants seemed more interested in taking part as their input involved exercising creativity.

To gain qualitative insights from consumers on their relationship with fragrance: what they buy, how they buy it and the problems they face as perfume consumers, through interactive tasks and lively conversation.

As the participants were all familiar with each other they felt comfortable sharing their honest opinions. The discussion revealed three key issues within their interaction with the fragrance industry, which could be areas of opportunity for niche brands to utilize.

To improve understanding of the current fragrance offering and the retail environments within which the products are sold.

Visiting department stores such as Liberty as well as the independent perfume boutiques provided a first hand view of the brands and the products on offer in order to identify their points of difference to the rest of the mass fragrance market.

Fig 2. Primary Research, 2014.

THE G H OS T S OF

PERFUME PA S T “Perfume goes back as far as human history itself ” (Williams, 2013: 7) playing a role in every historical era imaginable, but it wasn’t until the 19th century that it left “the preserve of the elite [and became] gradually democratized – commercially at least” (Gonsalves, 2013). Fig. 4 charts the key events since the dawning of modern fragrance.

Francois Coty, one of the most influential perfume giants, created his first perfume and in 1908, his first stroke of commercial genius led him to collaborate with glass maker, Rene Lalique, to create ornate bottles (Williams, 2013). b

11 18 89

21 a

19 04

Guerlain’s Jicky is commonly revered as the first modern fragrance, utilizing the scientific discovery of how to recreate expensive natural scents with cheaper synthetic formulations (Williams, 2013).

Couturier, Paul Poiret became the first designer to launch a fragrance with Parfums de Rosine.

When Coco Chanel created No5 the “lucrative relationship between designer and perfumer” (Williams, 2013: 11) was cemented.

The power of celebrity endorsement is no better realized than in Marilyn Monroe’s iconic quote: “What do you wear to bed?” “Just a few drops of Chanel No5.”

Elizabeth Taylor’s White Diamonds is commonly referred to as the birth of celebrity perfume as we know it today (Gardner, 2013).

87 Sophia Loren’s namesake scent, Sophia, under the perfume giant, Coty is technically the first celebrity fragrance.

It was in the late 1980s that niche independent perfumery began to establish itself answering the demand for subtler, more nose-friendly fragrances than the mass perfumes.

In the 90s, androgyny was prevalent within music, fashion and popular culture, and thanks to brands such as Calvin Klein, perfume followed suit.

The birth of the internet has since caused the development of an online perfume community, allowing fragrance obsessives to digitally congregate to share and discuss their mutual passion.

92 i

94 94 When J-Lo released Glow, celebrity fragrances started to be taken seriously as key players in the market.

k Jo Malone opened her first boutique as a niche, artisan perfumer that has since grown into a popular, aspirational lifestyle brand, arguably due to the acquisition of her business by Estee Lauder in 1999.

20 11

“The Art of Scent 1889-2012” exhibition charted the evolution of modern perfumery noting the correlation between iconic scents and contemporary art movements and social trends - critique that puts perfume in a similar category of cultural importance as fashion and music.

m Justin Bieber sent his worldwide army of ‘Beliebers’ into a frenzy with his first fragrance, ‘Someday’ and paved the way for other male celebrities, such as One Direction in 2013, to enter the female perfume market. n Lady Gaga’s Fame (which was reportedly originally designed to include notes of blood and semen (Lawrenson, 2012)) is the first perfume to be black inside the bottle but to turn clear when sprayed.

Fig 3. Ghosts of Perfume Past, 2014.

Fig 4. Perfume in the Present (a), 2014.

PERFUME I N

d 18

T H E P R E S E N T In 2014, the entire fragrance industry is witnessing issues, innovations and advancements that are changing the landscape and affecting the market, at all levels. T H E S M E L L OF F E AR Consumer concern is growing over the products we put in and on our bodies. A desire for honest, ‘natural’ products is already high amongst other sectors of the beauty industry; organic health and beauty products have benefitted from a 5.6% increase to £31.8 million in 2013 (KeyNote, 2013) This increased scrutiny is starting to affect the fragrance industry.

justified or not, fragrance brands will have to work harder to displace the effects of this stigma. The artisanal, handcrafted and limited production of many niche brands could find this increased concern advantageous. Their small-brand transparency suggests greater care regarding ingredients and formulations (whether true or not) that may comfort a more disconcerting consumer.

New EU legislation banning the use of potential allergens is currently in discussion, a change that would force iconic fragrances such as Chanel No5 to modify formulation, and therefore, scent (Mintel, 2012). Fragrance experts criticize the skepticism: perfume writer Tania Sanchez (2013: see Appendix C) believes consumers are becoming more concerned “in a crazy phobic way, so that due to sloppy journalism and eco-activism they now believe perfume is going to give them cancer and make boys grow breasts.” The reality is, that perfume causes allergic reactions in only 5% of users (Smith, 2012), and in fact it is natural ingredients that have higher allergenic potential. “If a natural has, say, one hundred molecules, the [perfume] house must contend with roughly a hundred possible allergic reactions. The synthetic, just one.” (Burr, 2007: 122). Whether the concern is

T H E U L T I M AT E S I G N AT U R E SCENT At the other end of the ethical spectrum, research in underway to develop Swallowable Parfum. Body architect Lucy McRae hopes to create a commercial pill that when ingested, emits fragrance molecules through the skin during perspiration, the potency of which “is determined by each individuals acclimatization to temperature, stress, exercise of sexual arousal” (McRae, 2013). This follows the rising popularity of ingestible beauty products in the wider cosmetics market, whereby neutriceuticals – products that when consumed internally offer exterior aesthetic benefits – are reaching a wider consumer base (Stylus, 2013).

Fig 5. Perfume in the Present (b), 2014. 20

S M E L L - O - VI S I ON Research into scent technologies is also on the increase. “No longer the reserve of science fiction, ‘smell-o-vision’ is now a reality” (Mintel, 2013). Japanese scientists have invented technology that can release scents digitally from specialized screens. ChatPerf is a new app and iPhone attachment that allows users to send scents. Olly, “the web connected smelly robot” (Olly, 2013) is a small device you can plug into your computer, which emits scents as you receive social media notifications. Despite the abundant research and technological innovation it requires, this technology could challenge the domination of physical bricksand-mortar stores within the fragrance market (Mintel, 2013). Harnessing the power of new scent communication technology, could “raise the profile of online as a key retail channel” (Mintel, 2013) allowing customers to replicate the in-store ‘trybefore-you-buy’ experience at home. P E R F U M E PA G E S As independent publishing becomes increasingly popular, Liam Moore created issue one of ODOU in 2013. Described as “a magazine that explores scent and perfume through themes such as memory, science, art, design, personal reflections, photography and many more,” (Moore, 2013) it bridges the gap between perfume and intelligence.

Such a specialist publication is unlikely to reach the mainstream, and the editor doesn’t “see it competing with the likes of Vogue or Wallpaper” (Moore, 2013: see Appendix C) but it aims to fulfill the interest of a growing community of perfume enthusiasts. It treats perfumery as an art form, reflecting the attitudes of many niche brands.

Fig 6. Perfume Store, 2013

O L FA C T O R Y OVE R L OA D

Fig 7. The Value of the UK Fragrance Market, 2014 24

Despite the economy’s slow recovery from the 2008 recession, the fragrance market has remained lucrative thanks to the “lipstick effect” (Key Note, 2013); in times of economic hardship, consumers tend to cut back on high-priced luxuries such as holidays abroad, but seek the ‘feel-good’ factor of relatively cheaper indulgences including cosmetics and fragrance (Biciuanaite, 2013). With consumer spend maintaining momentum, in 2013 the UK fragrance industry was estimated to be worth approximately £1.25bn (Key Note, 2013) with predicted growth of “around 4.5% each year from 2015-18” (Mintel, 2013). Women’s fragrances continue to dominate the market, accounting for 62% of sales. Chandler Burr (2007) notes a trend in the return to quality and fine fragrance, which accounts for 89% of sales (Mintel, 2013). Although mass-market fragrance continues to perform well, only 1 in 5 consumers believe it to be of equal worth to fine fragrance. With a greater focus on quality, niche perfume brands tend to fall within the premium sector, whose strong potential shows potential for future growth. The commercial potential of perfume hasn’t gone unnoticed. Traditional perfume houses to popular (and not so popular) celebrities, designer names to high street retailers, car manufacturers to discount supermarkets, are amongst the brands that rushed to bank in on this liquid money, launching new scent after new scent. The result was inevitable: olfactory overload. In 2012 alone, it was estimated that around 1400 new fragrances were launched globally (Lernert and Sander, 2013). Added to the bottles upon bottles already on the shelves, it’s hard for consumers to make sense of the scents.

“It’s like going into TK Maxx or Primark, it seems good on paper, but oh my god, you have to wade through A LOT to find something good” (Moore, 2013: see Appendix C)

S TAC K I N G THE S H E LVE S

F A M E ,

B O T T L E D

“Fragrance is the single best way of monetizing celebrity and brand ever created” (Burr in Something Old, Something New, 2011)

Niche brands face tough competition from mass-market corporations, whose glamorous offering wins the attention of the mainstream consumers. BE AU TY E M P I R E S

“According to the Fragrances of the World Database, 31 of the top 100 perfumes of 2012 were created or endorsed by a celebrity” (Mintel, 2013). It would seem there is now a signature scent to match the vast majority of famous faces,

Euromonitors’ ‘Scent of New Horizons’ report revealed “the proliferation of Key cosmetic and skincare players at celebrity fragrances over the review all market levels are extending their period saw the increase of fragrance portfolios to include fragrance product. usage” (Walker, 2013) meaning these scents have acted as entry points into the Premium players, Elizabeth Arden and Estee Lauder are amongst many cosmetic world of perfume for many consumers. They are evolving past their “bubblegumcompanies that have branched into fine sugar-floral-pop facet” (Moore, 2013: see fragrance. What started out as small Appendix C) and becoming “increasingly beauty ventures have grown into large corporations, who own a number of other more A list than Z list.” (Mintel, 2013) beauty brands, as well as holding the As many celebrity fragrances are created licenses for many designer and celebrity under licenses of big corporations such as fragrances. Coty, “The question for celebrity perfume is, of course, how much of the celebrity is Masstige brands, those bridging the gap actually in the bottle?” (Burr, 2007: xxi) between premium and mass, have also ventured into perfume. Benefit, an LVMH cosmetics brand, offers fragrances “for your extra beauty fix” (Benefit, 2013). At a mass scale, brands such as The Body Shop now retail own-brand fragrances alongside their bath, body and makeup products.

T H E I N F I LT R AT I ON OF T HE HI G H S T R E E T

FA S H I O N

F UN DE RS

High street retailers have noticed the potential monetary value of fragrance as a bi-product of a brand. “While designer fashion brands use fragrances as an accessible means for consumers to buy into their brand, the reverse has also become evident, with mass-market brands using fragrances to add a bit of luxury to their product offering.” (Tyrimou, 2013)

”What proportion of Yves Saint Laurent revenues are accounted for by perfume?” Saint Laurent replied, “Eighty-three point Abercrombie and Fitch’s fragrance is five.” (Burr, 2007: xvi) integral to their brand, not only as a product to extend the involvement in Designer scents allow a more accessible an A&F lifestyle beyond clothing, but lower-priced route into a luxury brand. the heady scent is sprayed within the “14 of the top 30 global fragrance brands stores, making it as instantly recognizable come from fashion houses” (Tyrimou, as their scantily clad, dancing sales 2013). As Burr eludes in The Perfect Scent assistants. The British high street is (2007), despite being a sub-product of the littered with brand fragrances: River brand, perfumes can actually be the most Island, Monsoon, Next and even Primark profitable cash-cows of designer fashion sell their own perfume. business. In September 2013, British high street Some argue that fragrance devalues a brand Reiss launched a fragrance “in designer brand. Louis Vuitton is one of a bid to evoke a more luxury feel to its the few designers yet to create a perfume, name” (Tyrimou, 2013). By retailing arguably, “because there would be Vuitwithin the beauty hall of Selfridges, ton products in some store that’s going to it aims to secure a more premium treat them like any other product, store perception of the product amongst direct them on some shelf somewhere, and competition with the key players of the put them on sale at 50% off, and they’ll market (Tyrimou, 2013). have no control over their own products” (Burr, 2007: 141) Even budget supermarket, Lidl, have their own fragrance entitled Suddenly Madame Glamour, priced at £3.99 for 50ml. After “an independent test revealed that 90% of women preferred the fragrance to Chanel’s £61 Coco Mademoiselle” (Mintel, 2013) the Lidl dupe flew off the shelves. 27

Fig 8. Perfumes: Chanel, 2013 28

A VI C T I M OF I T S OWN S U C C E S S “T he perfume i ndus tr y is c hok ing it s el f to death on its va c uu m” ( B urr, 2007: 138)

For both the brands and the consumers, the saturated market is a minefield. Brands have to shout louder to be heard over the competition and consumers don’t know where to look, or what to smell.

The intense success of the mass market has arguably commoditized the product, reducing its value and allure to that of an easily accessible essential, rather than a luxury indulgence (Passport, 2013).

Passport (2013) describes the market as ‘a victim of its own success’, The proliferation of celebrity fragrance provided a boost to fragrance usage and the ownership of multiple fragrances at one time. Where premium scents, with their higher price points continually account for the majority of sales, the mass segment appears to be catching up, “the acceleration was particularly strong last year with mass brands growing at virtually double the speed of premium brands” (Walker, 2013).

At the most basic level, buying a fragrance is exchanging money for a glass bottle of clear liquid. Unlike flash cars, designer clothes or gourmet food, this luxury is intangible. Therefore, the marketing message has become as important to the sales figures as the fragrance, if not more so. Brands, whether they are niche or commercial, premium or mass, sell a common concept: fragrance is a ‘life-changing’, ‘self-affirming’, ‘ambition-fulfilling’ liquid luxury. But as the shelves fill up even more, with “trash perfumes, composed in a matter of months on the cheap and sold with celebrity faces and outrageous claims” (Turin and Sanchez, 2008: 5) the glamour is rapidly evaporating.

This is good news for the Potent Four but many critics claim the quick turnaround of their fragrances, teamed with their inverted focus on the marketing concept as the seed that inspires the scent, detracts from the real allure of perfume as a luxury product (Burr, 2007).

Fig 10. Le Labo New York, 2012

THE CURE

Fig 10.

Fig 11.

Fig 12.

â&#x20AC;&#x153; I n ot her words, G od c reated niches : the sma l l f r a g r ance fir ms sel l ing l im ite d amounts to cons umer s who f eel their tastes are l a rg el y ignored by the big guysâ&#x20AC;?

Fig 13.

( Sanchez and Turi n, 2 0 12: 17 - 18)

Fig 14.

Fig 15.

Fig 16.

focused on the product, which tends to speak for itself ” (Williams, 2013: 13). For niche brands, their best advert is their good reputation (Knezhevich, 2007).

As perfume reaches a state of heady commerciality, it is the niche brands that are hailed as the remedy, to inject quality back into the bottle. The dawning of niche, independent perfumery arrived in the 1980s, when perfumes became louder and stronger, and new fragrance launches became an almost daily occurrence. As the shelves started to fill up, the marketing campaigns became louder; their goal? Appealing to the masses. “Seeking immediate success, the mass market companies wanted everyone to wear the same fragrance” (Williams, 2013: 13).

Without the reigns of the big corporations, “Niche perfumers have the freedom to experiment more with their blends; they don’t appear to be driven by sales like today’s designer, and especially celebrity, fragrances are.”(Pages and Perfume, 2014: see Appendix C) Where mainstream fragrances tend to play it safe to appeal to the masses, niche fragrances champion the unexpected and the olfactory offering from these brands is diverse, surprising and amongst the most innovative of the industry. 4160 Tuesdays’ Time to Draw the Raffle Numbers, was created to “evoke the smells of the Tour de France, so there’s notes of burnt rubber and hot tar” (Pages and Perfume, 2014: see Appendix C) scents that you are unlikely to find in the mainstream.

These nondescript, generic scents weren’t for everyone, and in revolt, independent perfume houses brought niche fragrances to the marketplace. The Fragrance Foundation (2013) defines a niche brands as “boutique artisanal perfume studios whose production is on a much smaller scale, and whose presence in mainstream retail stores is minimal or non-existent” (in Perfume.org, 2013). Where today’s fragrance market is dominated by commerciality, niche brands are the antidote to reverse the downward trend in quality (Turin, 2013: see Appendix C).

Profiles on the key players within the niche sector can be found in Appendix B.

Hoping to rebuild the allure of modern perfumery, the niche brands tend to be smaller, artisanal ventures that place importance on quality, craftsmanship and superior ingredients (Turin and Sanchez, 2008). They promote the artistic process of creating a scent, through their aesthetics and retail environments. Le Labo bottle their fragrances in front of the customer on demand, and their personalized packaging details the location, date and customer name. Although to claim they seek no commercial reward would be naive, they pride themselves on forgoing the traditional marketing techniques utilized by the big name companies, spending their time, money and effort on the scent itself. “Such brands have little or no advertising budget, and so everything is

THE

“ T he p er f u mist as, the no s e nerds , t he f u mehea ds , the s c ent l over s , the c ol l ec tors, the hoa rd er s , the v in ta g e f ans , the c el ebr ity nay - s ayers, the nat u r a l l overs and s yn thet ic hat ers, the nic he c rowd, the dec an ter s , the el itist c rowd, the swappers, the die- ha rd brand l over s and i nd ie s u pp or ter s …its s afe t o s ay th is c om mu n ity is one of the g eek ies t and p a s s ionat e you’re ever to mix with”

Fig 17. Anja Rubik, 2012

(M o ore, 2 012 )

P E R F U M I S TA S Despite their advantages, as the word niche would suggest, these brands are still very much within the realm of the fragrance obsessed. With 91% of the population owning fragrance products (Mintel, 2013), Passport (2009) recognizes two types of fragrance consumer. The first, the majority of consumers, do not maintain the economic wealth or personal interest to budget for premium scent indulgences. (Passport, 2009) They lack a passion for the product, viewing it as an everyday, necessary commodity. The mass offering from the big name brands currently fulfills their fragrance needs. The second group “is comprised of perfume connoisseurs with a higher disposable income. These consumers display a marked degree of brand loyalty, with their preferences driven by the exclusivity of the perfume.” (Passport, 2009). Their hunt for luxurious quality indulgence leads them away from the mainstream, and niche perfume is able to answer their imperative desire for individuality. Fragrance critic Roja Dove (2010: 253) describes them as “a generation brought up on a diet of olfactory banality and instant gratification, and who begin to realize that what they thought was refined and luxurious was in fact mass-market

and naff, as they discover there are fragrances that convey their individuality, marking them out from the crowd, which once they so wanted to be part of ’.” Like any obsessive, their love of the subject means their vocabulary is far more specialist than the general public. Just as a music enthusiast can communicate through musical jargon, the perfume obsessives speak in a language of notes, juices, accords and noses. They have a greater understanding of the technical composition of scents and an appreciation for the ingredients and processes that lead to the final product. This isn’t general knowledge: these consumers actively seek the information that feeds their fragrance appetite. For the ardent fragrance fanatic, purchasing from the niche sector seems like an obvious choice: these brands fulfill their desires in way the mass could not achieve and there are four key drivers leading them to purchase from this sector: The Art of Perfume, Fakery of Fragrance, Dawning of the Digital and a Desire for the Different. There is evidence to indicate, however, that each of these drivers is seeping into mainstream culture, suggesting potential for niche perfume brands to expand their reach beyond this fanatical demographic.

Fig 18. The Art of Scent 1889-2012, 2012

â&#x20AC;&#x153;Perfume is an art form. In the s ame genre as music and painting. It requires talent, expertise and most of all passionâ&#x20AC;? (C h r is t ian in F r a g r anc e Fou ndat ion, 2 0 1 3: onl ine)

THE ART O F P E R F U M E RY Gradually, the outside world is embracing the concept that the perfume community has accepted for years: perfume is an art.

‘The Art of Scent 1889 – 2012’, an exhibition curated by Chandler Burr at The New York Museum of Arts and Design, charted the evolution of modern perfumery. Burr revealed, “the fundamental goal of the department is placing scent as an artistic medium alongside painting, sculpture and music” (Burr in Kino, 2012) and featured the scents naked from their packaging, celebrity ambassadors or marketing campaigns, to enable the audience to appreciate the fragrance itself (Orlin, 2012).

Niche perfumers echo this sentiment. Many brands, including Floris, Jacamo and Blood Concept, reference the art of fragrance in their brand manifestos. Scent has long been the subject of many artists’ work. Scandinvaian artist, Sissel Tolaas, “uses art and scent to provoke conversations” (Stylus, 2010), noting “we are almost language-less to understand smells” (DiCarlo, 2010). She believes the training of our olfactory system could introduce another source of knowledge beyond the visual and aural. Challenging the social ideal that natural odour should be concealed, Tolaas created a series of scents replicating human body odour, encouraging “the smell blinded” (Tolaas in Rushton, 2006) consumers of the western world to evaluate our hyper-fragranced environments.

In November 2013, Christian Dior paid tribute to their iconic Miss Dior scent through an exhibition featuring artworks by 15 female artists exploring the product history. This particular effort was arguably more commercial than cultural, but it further emphasizes the concept that fragrance should be celebrated and appreciated like any other art form. Turin and Sanchez (2008) believe this cultural shift is good news for the fragrance industry. They believe that “The perfume business will certainly fare better in a world of genuine love than it would in a world in which everyone dismisses its product as nonsense” (Turin and Sanchez, 2008: 5)

When Salvador Dali ventured into the medium of scent, it was the “first artist’s fragrance in the world” (Parfums Salvador Dali, 2013:). After finishing his Apparition of the Aphrodite of Knidos painting, Dali replicated the image in the form of a perfume bottle, artwork that later inspired the composition of a DALI scent (Parfums Salvador Dali, 2013). 37

Fig 19. Brad Pitt for Chanel No 5, 2012

“Here is an industry suffocating itself on the most immense pile of public relations shit human civilization has ever produced, a literal mountain of verbiage about “the noble materials, symbol of eternal feminine beauty, addictive notes of Coco Puffs, she can’t wait to taste him like a Hershey’s Kiss, Cleopatra wore this, it has notes of distilled wild all-natural Martian fungus harvested by French virgins on the third moon of Pluto” (Burr, 2007: 136) 38

T H E FA K E R Y OF F R AG R AN C E and Now Smell This, the main priority of the Perfumistas is the smell.

As Chandler Burr artfully states it, the fragrance industry has become so consumed with the marketing message that advertising says very little about what the fragrance actually smells like (Burr, 2007).

This distaste is not only limited to the consumers of the niche segment. In 2012, Brad Pitt became the first male face of Chanel No5 in a TV advertisement, which saw Pitt giving a monologue to camera: “It’s not a journey. Every journey ends, but we go on. The world turns and we turn with it. Plans disappear, dreams take over. But wherever I go, there you are. My luck, my fate, my fortune. Chanel No5. Inevitable.” (Pitt in Attwood, 2012).

To an uneducated public, selling an intangible product like fragrance is no easy feat and so mass brands employ emotive, expressive and somewhat excessive language to promote an image of what the fragrance represents. With their informed grasp of the subject, The Perfumistas are turned off by these transparent tales.

The advert received abundant attention, even if for the wrong reasons. Spoof versions litter the internet, with comedians, YouTubers and even Hamsters, parodying the original in a comment on the irrelevant empty language used to sell the product.

Unconcerned with an over romanticized picture of how great their life will become wearing this scent, their sole aim is to find a scent they love on a personal level. They see overly dramatized marketing as filling the gaps where the fragrance falls short, but without advertising, niche brands are not guilty of shoving glamorized stories down consumers’ throats.

Niche brands can use this to their advantage, maintaining their distance from standard forms of advertising and keeping their message clear: they are there to sell things that have genuine quality in their bottles.

That isn’t to say they don’t have stories to tell. If you look for it, you can find explanations of the perfumers’ personal inspiration behind the scent. However, as revealed by the thousands of user reviews documented on Fragrantica, Base Notes 39

Fig 20. MacBook in Bed, 2014

â&#x20AC;&#x153;Until recently, talking intelligently about the art of perfume seemed impossible. Then suddenly it seemed inevitable. What changed? The obvious: The Internetâ&#x20AC;? (Tu r in and Sanc hez, 2 0 08: 3)

D AW N I N G O F T H E DI G I TA L The arrival of the World Wide Web sparked a revolution in the perfume industry.

perfumes they found lackluster (Angela, 2011:). For brands, this increased level of public unbiased critique could prove unfavorable but for the niche, artisanal brands, those who accept that scent is but a matter of subjective taste, they embrace the internet as a place for people who truly love their craft, to come together in olfactory worship.

Launching a fragrance brand in the age of the Internet is a much less daunting prospect than before the web. Fundamentally, it has allowed brands a cheap online presence, reducing the difficulty found in spreading the message to consumers and reducing the cost of selling to them.

Uniquely, Olfactive Studio is a niche brand (see Appendix B) that began as a Facebook page entitled “the blog for the fragrance that doesn’t (yet) exist” (Olfactive Studio, 2013). Dubbed as a crowd-sourced brand, a collaborative effort between the founder and her social media following, matched photographers with perfumers, to inspire each other’s creative processes, resulting in a collection of five scents (Marinelli, 2013).

However, arguably more positively, it has facilitated “an active community of eager, informed perfume lovers” (Turin and Sanchez, 2008: 17). Online, fragrance obsessives can join together at the touch of a button, forming communities of likeminded fanatics, who revel in the discussion of fragrance: the good and the bad. “Online communities can criticize perfume in a way that magazines have never dared; there is no advertising to lose” (Turin and Sanchez, 2008: 3) and platforms such as Fragrantica, Base Notes and Now Smell This provide the web space for anyone with an interest to write honest reviews and ratings of any scent imaginable.

It would appear it’s not just The Perfumistas that are looking online to whet their perfume appetite. Fragrance features on many popular lifestyle, fashion and beauty blogs. The Candy Perfume Boy, who writes a blog dedicated to fragrances, has found a rise in interest amongst mainstream consumers accessing his blog, and others of its kind, “who are looking up info on the latest mainstream launch to see whether it’s worth buying” (The Candy Perfume Boy, 2014: see Appendix C)

The Internet also offers fragrance lovers a solution to their misjudged purchases through ‘swapping’, providing the platform to discuss the trade of

Fig 21. Everything, 2012

“I don’t want other people wearing my scent, which is why I veer away from mass brands” (B ha g wanda s , 201 4: s ee App endix C)

DE S I R E T O B E D I F F E R E N T A key factor driving the sales of niche perfumery amongst their consumers is their small following. Unlike the mainstream, niche perfume is not for everyone. The brands realize this and use the exclusivity to their advantage. As Samantha Flowers, Beauty Editor of Stylist magazine puts it:

Mainstream consumers often claim that they too don’t want to wear a fragrance that everybody owns, but as their behavior leads them towards the mass brands found in high street retailers and on the advertisements in glossy magazines, they often get their credit cards out for the familiar (Burr, 2007).

“it feels like your little secret”

With the big advertising budgets, cost efficiencies of producing en masse and recognizable names, the big name brands are potentially always going to dominate the fragrance market, but the niche brands, with their unique scents and limited following could answer this need for individuality amongst a larger group of consumers than they currently attract.

Niche consumers revel in the opportunity their perfumes provide to be unique - “It’s great to wear a perfume that you know will appeal to people but that not many others will have smelled” (Pages and Perfume, 2014: see Appendix C) Just as trends of customization are leading the desire for individuality in fashion, the untapped niche brands offer a scent to compliment a unique persona. Niche brands can afford to place higher price tags on their products as their consumers see this as another marker that this product isn’t for the masses; it is somewhat a limited edition that they aren’t going to smell wafting from the décolletages of every body they pass along the street.

P O P U L A R I T Y P A R A D O X Reaching a wider consumer base not only would bring them greater commercial gain but could also spark the change within the fragrance industry that many of them declare to be attempting to cause. But just how many consumers can they gain before they become the commercial powerhouse they set out to avoid?

The message of niche brands is clear: they are the ultimate antidote to mass fragrance. They promote fragrance as a luxury purchase through a unique, high quality product offering, despite the commoditization inflicted by the mainstream brands. They proclaim their desire to deter more consumers from the ‘uni-scented’ fragrances of the big corporations but without big advertising budgets, this message becomes lost amongst the masses.

A popular niche is somewhat of a paradox. The brands may seek greater popularity but their loyal consumers, The Perfumistas, are divided on letting more people in on their little secret. On the one hand, they worry that the more interest the niche fragrance market attracts, the more diluted their offering becomes. The niche product answers the prayers for uniqueness but as it becomes popular, the original appeal begins to fade. However, some believe that taking a dislike to a brand just because more people like it is shallow (Pages and Perfume, 2014: see Appendix C). The Perfumistas claim to be concerned solely with the quality of the scent and so brand success should not matter. “Just because something is popular doesn’t mean it loses it’s identity” (Flowers, 2014: see Appendix C).

Fig 22. Eight and Bob Fragrance, 2013

Should a niche gain popularity, not only could the original consumers be turned off by the apparent ‘selling out’, but attempts to expand the brand could tarnish the allure, failing to attract any new custom. Therefore, it is imperative that brands remain loyal to their values of quality over quantity, are careful not to expand too quickly or too much and maintain their small-brand feel, no matter how large their following.

F I N D I N G ‘ T H E O N E ’

Fig 23. Perfume Testing, 2013 In the fragrance industry, loyalty is key (Something Old, Something New, 2011). Niche brands, which believe their products are of a higher quality, seek to build loyal relationships with consumers much stronger than the urge to follow the latest fragrance fad.

number of fragrances too, with a chosen scent they buy repeatedly. Consumers aged 50+ were the most loyal, retrospectively having owned many fragrances within their late teens and twenties, but have since found a favourite that they now stick with religiously. It was evident that as age increases, so does perfume loyalty.

Consumers of varying generations and backgrounds were asked to compile a perfume timeline documenting their lives in perfume.

However, there lies a tipping point between fickleness and allegiance between the ages of 21 and 26 (consumers commonly considered to be part of Generation Y (Asghar, 2014)). Fragrance usage is still high amongst this generation in general (Mintel, 2013), but during this age range, it appears that the consumer meets ‘the one’ – the single scent they feel perfectly fulfills their olfactory needs, and they begin to settle down.

The European Institute for Brand Management (2010) provided the basis for the hypothesis: “older consumers stick with [fragrance] brands longer than younger consumers.” Ultimately, the older you get, the more brand loyal you become. The timelines proved this theory. Teenage consumers rarely buy the same fragrance twice: their scent taste changes fast (Gottlieb in Smell of the Future, 2011) and they currently own and use multiple scents at once. As fashions evolve, they tend to flit from brand to brand, replacing one bored scent with another (Global Insight, 2007). Generation X, roughly aged between mid 30s to late 40s (Asghar, 2014) currently own a small

Fig 24. The Generation Y Fragrance Consumer, 2014 46

WH O? A clear definition of the birth years of the Generation Y consumers is still up for debate, but the title is commonly applied to people currently aged between their early twenties and early thirties (Asghar, 2014) and as the study into consumers’ fragrance history (see Appendix D) revealed, they are at the key stage of establishing loyalty to fragrance brands. As fragrance consumers, the usage of scent remains highest amongst this generation (Mintel, 2013) with each of them owning multiple scents (see Appendix E) further highlighting the commoditization of the product as previously identified (Passport, 2013). However, they still perceive fragrance as a luxury purchase: participants in the focus group (see Appendix F) revealed that buying perfume should feel special. With a penchant for luxury goods, as uncovered Time Magazine’s survey (2008), promoting the indulgence of niche perfumery could engage this consumer. Mintel (2013) found that “38% of fragrance users feel that wearing fragrance increases their attractiveness” adding that a common motive of buying perfume is to form part of creating a particular image. “By 2017, Millennials… will have more spending power than any other generation” (Bazaar Voice, 2012) and therefore, they are a key demographic to engage now, to form a loyal consumer base for the future. “They trust opinions from consumers more than what brands say about themselves” (Bazaar Voice, 2012). With a powerful desire to share and connect (Stylus, 2012) “the Gen Y crowd is looking for an experience that will wow their friends and earn them bragging rights on their return” (Roberts, 2011). From brands they crave innovation, service, value, fun and surprise (Future Laboratory, 2013) and as the focus group revealed, these aren’t experiences they are gaining from the current fragrance retail landscape.

Fig 25. Instagram Perfume Colletions, 2014

W H AT ? Using the social media channel of Instagram, 52 consumers in this target audience were asked to share images of their perfume collection, collected through the hashtag: #onmydressingtable (see Appendix E). The focus group (see Appendix F) enriched these insights revealing that although the consumer engages almost solely with mass-market scents, they are interested in finding more unique fragrances than the mass offering. Such responses included: “It’s actually quite nice to have a perfume that not many people have.” and “I want a perfume that not everyone has, so something that is more likely to be rare.” However, their plight for a unique fragrance doesn’t stretch to niche perfumery, as they are unaware of this alternative. When asked to name any independent or niche fragrance brands they know, none of the consumers were able to answer. The focus group also proved the hypothesis regarding fragrance loyalty. Many had worn various scents throughout their lifetime and although some participants had repurchased the same perfume twice or three times, they were all open to finding a new scent. One participant explained, “I get bored quite easily with perfume. I use it up quite slowly so by the time I get to the end I’m usually over it and ready for something new”, and another revealed, “I’ve never used the same perfume twice.” However, it is evident that they are reaching the tipping point of establishing fragrance loyalty: “Yes I have changed. I always get bought different things from different people but the older I got the more I have stuck with this one.”

5 3 R E S P ON DE N T S OWN E D A C OL L E C T I VE 2 2 3 F R AG R A N C E S 14

NICHE

B E AU T Y

DE S I G N E R

HIGH ST

CELEBRITY

170

Fig 26. Generation Y Fragrance Collections, 2014

WH Y? During the focus group (see Appendix F), participants were asked to rank the factors that affect fragrance choice in order of importance to them. Ranked at the top was ‘smell’ and all participants agreed that this was the most important factor. This is arguably the most logical top motivator, however, it could be argued that consumers don’t appreciate the real influence other factors may have. All participants agreed that although other factors have an influence, they would not buy a fragrance if they didn’t like the smell of it. Although the collections of fragrances owned by these consumers are dominated by designer and celebrity scents, these consumers suggested that these factors don’t necessarily sway them towards one fragrance over another. They could, however, have a detrimental effect, if a brand name or a celebrity has negative connotations, then they would avoid purchasing their fragrance regardless of whether they liked the scent or not. Popularity isn’t important: the focus group revealed that having a perfume not commonly used amongst their peers was crucial to them, although it can introduce them to brands they hadn’t yet considered.

Fig 27. Fragrance Factors, 2014 53

WH E R E ? The focus group revealed that the first step in finding a fragrance for these consumers is to start smelling the perfume on offer.

The fear of missing out A key issue with their experience fragrance purchasing is the paradox of choice. They are paralyzed by the amount of choice on offer to them and worry that they are not able to try all of their options, a concern revealed by various participants in the focus group:

A general consensus was that “perfume is meant to be like a luxury and make you feel like you have something nice and expensive. So I would want to buy it somewhere nice.” But without the knowledge of an alternative, these consumers head to familiar high street retailers including Boots, Superdrug, The Perfume Shop and various department stores.

“I always feel like I’m missing out. Like I couldn’t possibly smell them all and that worries me. Like what if I haven’t smelt my favourite perfume yet?”

Generation Y buy into experience (Stylus, 2013) and their accounts of fragrance shopping reveal they are currently unimpressed with the experiences provided by these retailers.

“I could be smelling for the rest of my life and still not find the one.” “Sometimes I feel a bit lost. I just don’t know where to turn. And I just find myself going for the predictable ones because I don’t know where to find anything different.” On average they smell about ten fragrances in one day (see Appendix F) and should they not find one they like, they tend to wait for another day, as they believe their sense of smell becomes diluted. One participant of the focus group (see Appendix F) was positive about her experience with Duty Free shopping where she was encouraged to smell coffee beans in between perfumes to clear her nose of previous scents. They are stunted by the fear that the grass is greener of the other side, but niche fragrance brands could use their heightened awareness of quality to convince the consumer that she will find her ‘signature scent’ amongst their collection.

The fragrance of the fragrance store

The unhelful helpers They have a desire to know more about perfume to aid their purchasing decisions, to ensure they are getting the best deal for their money and the scent they will love, for at least until the bottle runs out. However, they have found that the retailers have been less than helpful in aiding this process.

Another problem identified is that when shopping in fragrance retailers they find that from excessive testing, the air itself has become scented: “I find in places like Debenhams with perfume halls that there is already a hint of perfume in the air anyway, so its hard to smell anything above the stench.” Another participant in the focus group added, “it’s like the whole downstairs smells of like, perfumes.”

One focus group participant explained, “In the Perfume Shop and Superdrug they are all locked behind the counter so you have to ask. And she did not like the fact I was asking for lots of different ones” This insight suggests that this consumer felt she wasn’t able to take the time and consideration she would have liked over choosing a scent, and when wanting to test more fragrances she “felt like a pain having to ask.”

These consumers worry that the smell they fall in love with in store will be different from the smell of the fragrance away from the aroma of the perfume hall.

Their lack of knowledge over particular ingredients became evident in the fragrance puzzle task, whereby participants were unable to match lists of ingredients and compositions of notes to actual scents. However, they were interested in learning about what they are smelling, and about the product attributes (reinforced by Mintel’s (2013) research that revealed 27% of 16-24 year olds would be interested in learning more about fragrance) but suggested the sales assistants aren’t equipped to provide the knowledge they were after. One participant of the focus group (see Appendix F) told a positive account of her experience shopping in a Jo Malone boutique, and admired the special treatment her purchase received through helpful, knowledgeable sales staff, intricate gift wrapping and the offer of samples. However, as these consumers don’t know where to look for niche brands, they are not witnessing the more luxurious, indulgent experience that they offer to them. 55

WH E N ? “Mine are gifts but t hey k now t hat I like it” These consumers generally acquire fragrances through gifting. As fragrance is a personal product difficult to make on behalf of someone else, they tend to choose the fragrances that they later request as gifts. However, they would be open to indulging in the purchase themselves. One focus group participant divulged, “I haven’t ever bought perfume. I would if I didn’t get it for a gift but I’ve never had that problem.” Despite not purchasing the scents for themselves, price was still ranked as the second most important factor. However, discussion of this decision revealed that these consumers are looking for value for money rather than a cheap purchase. If they are going to invest, or have someone invest for them, they want to be sure that they are receiving quality back.

H E A R T NOTES Fig 28. Above the Stench 2014 The commercialization of the UK fragrance market, whilst prosperous for the mass brands, has led to the commoditization of fragrance product, reducing the allure to an easily accessible normality. Niche perfume brands are hailed as the antidote to commercial mass fragrance, which will â&#x20AC;&#x153;reverse the downward trend in qualityâ&#x20AC;? (Turin, 2013, see Appendix C).

Lying on the tipping point between fragrance fickleness and loyalty are Generation Y consumers, identified as the ideal candidates for niche perfume brands to extend their reach. Seeking scents that smell different to all of their friends, niche brands offer the individuality unobtainable through the mass-produced perfumes available on the high street.

Niche perfume brands share the desire to revolutionize the way consumers shop for perfume, by dedicating time and money to producing innovative, interesting scents of the highest quality on limited scales. However, without the big advertising budgets of the mass brands, this message is lost amongst the saturated market.

Currently unimpressed by fragrance retail and seeking greater knowledge to aid their purchasing decisions, opportunities are open for niche brands to gain the interest, trust and loyalty of the Generation Y consumer, by allowing them to stand out in the saturated market without forfeiting their niche values.

S T R AT E G I C

O U T C OM E S

SNIFFING OUT AN OP P ORT UN I T Y Research throughout this project has identified four clear opportunities that niche fragrances could make their own, whilst maintaining their intrinsic qualities and values. These gaps in the market could secure their status amongst Generation Y consumers as a high quality, indisputable alternative to mass-market scent.

1. REIGNITING THE ALLURE

3 . L AC K L U S T R E R E TA I L

What was once a luxury indulgence has now become a readily available commodity (Passport, 2013) the value of which has declined as sales of the mass brands have increased. With their intense focus on quality, niche fragrance brands could once again promote the luxury of the product through engaging retail experiences and promoting their superior product.

Generation Y consumers are currently unimpressed with the fragrance retail landscape of the mainstream (see Appendix F). The stores themselves are uninspiring and simply add to the commoditization of fragrance product, through lack of special care and overcrowded shelves. Although niche perfumers tend to pay more attention to providing an indulgent experience in store, they go unnoticed by the Generation Y consumers, as generally, they arenâ&#x20AC;&#x2122;t even aware of their existence (see Appendix F).

2 . A N E D U C AT I O N

4 . T H E F E AR OF M I S S I N G O U T

The Generation Y consumers want to know more about fragrance to inform their purchasing decisions (Mintel, 2013) and improve their relationship with scent. However, they struggle to find the information they want to know from massmarket brands and retailers (see Appendix F). With dedication to the craft and art of perfumery, niche fragrance brands are well equipped to provide a new level of knowledge to this consumer

The consumer is paralyzed by the fear of missing out. They find that there is too much choice within mainstream fragrance and worry that as they are unable to smell every single available scent, so may never find their ultimate scent (see Appendix F). Niche fragrance brands can reduce this fear by promoting their superior quality, assuring the consumer that their offering will fulfill their needs so perfectly, that commercial mass fragrance isnâ&#x20AC;&#x2122;t worth their time.

F I N DI N G THE C ON S U M E R As previously discussed, Generation Y consumers are unaware that niche brands exist as an alternative to mainstream scents. The focus group (see Appendix F) revealed that their view of the fragrance retail landscape stretches no further than the high street. Shopping in stores such as Boots and The Perfume Shop for their scent purchases means they arenâ&#x20AC;&#x2122;t exposed to niche brands. Although niche brands are increasingly finding themselves mentioned in the womenâ&#x20AC;&#x2122;s glossies that appeal to many women in this age range, the glamorous advertising of the mass brands overshadows their message. As brand awareness is so low; niche brands need to find a new channel to reach the consumer. One potential solution is to place niche products in the fragrance stores that these consumers currently frequent, such as Boots or The Perfume Shop. This increases the risk of brand and product devaluation. Favoring the greater control that comes with small-scale production, the niche brands may struggle to fulfill the large orders of these retailers or alternatively, they would have to sacrifice their production values to meet the demand. It would also place them in direct competition with the mass brands they avoid; they want to be seen as the antidote not just an equal alternative. Retailers such as Boots cater to a wide demographic of consumers, and therefore, the vast exposure could make the niche brands a victim of their own success, like the mass brands before them: the higher availability would commoditize and devalue the quality of the niche products (Passport, 2013).

Fig 29. & other stories, 2013 Alternatively, a new independent retailer dedicated to selling niche perfume to the Generation Y consumer would allow the brands greater control. However, as there are already specialist niche perfumeries available, and the consumer isnâ&#x20AC;&#x2122;t actually aware of the existence of niche brands, this runs the risk of going unnoticed like other efforts before it. Therefore, niche fragrance brands should look to occupy space within an existing retailer, outside the beauty and fragrance sectors, whose values align with those of the niche brands. With a similar demographic, the niche fragrance brands could take advantage of the established consumer attention, utilizing the opportunity to expose the Generation Y consumers to the quality craftsmanship of niche fragrance, subsequently standing out from their mass competitors. 61

Fig 30. & other stories bag, 2013 62

A B OVE T H E STENCH This report proposes a new brand, Above the Stench, whose mission is to bring niche perfumery to the Generation Y consumer.

craftsmanship to give a more premium feel” (Ormrod, 2013) which matches the essence of niche perfumery.

Rather than becoming a standalone shop, Above the Stench would reside as a concession within an existing retail store. The prime candidate, & Other Stories, is a fashion retailer, stocking own-label clothing, accessories and beauty products alongside selected external brands. With “sufficient clout and brand awareness behind it” (Ormrod, 2013), this brand has what the niche fragrance brands want: attention. The perfumers can utilize & Other Stories’ established reputation as a shortcut to reaching their fashion-conscious Generation Y consumers (Brown, 2013).

Despite being under the H&M umbrella, with just one UK store on London’s Regent Street, & Other Stories maintains a small brand feel that niche perfumery could benefit from, in order to reach a new consumer without appearing to be ‘selling out’ to the mainstream. Pitched as the top destination for unique perfume, the store would provide an engaging space for Generation Y to discover niche brands, reigniting the allure and rebuilding the luxury of fragrance. To meet this mission, the retailer will be defined by four key aims.

Like niche fragrance brands, & Other Stories pride themselves on their “great attention to detail and quality” (Stories, 2013) avoiding “splashing high-end celebrities and low-end prices across billboards” (Kunde, 2013). They dismiss a fast fashion approach (Kunde, 2013b), favouring classic, timeless pieces, much like a favourite scent. & Other Stories are particularly stringent with their choice of high quality materials, “emphasizing

Firstly it will aid the consumer decision journey through clarity of a curated product range. It will educate consumers to make better fragrance choices. It will endeavour to excite the consumer by taking her ‘behind the curtain’ and finally it will provide superior customers service that makes this store the preferable destination for perfume.

THE LIQUID L U X U RY

Stories will aid the consumer’s decision journey by ensuring the shelves are uncluttered, only displaying the tester bottles. The boxed scents will stored in cupboards away from the customer’s eye, to avoid the visual noise that leads to the perception of too much choice.

As identified through the focus group (see Appendix F) when it comes to finding fragrance, the Generation Y consumer suffers from the fear of missing out. They are daunted by the sheer volume of perfumes that face them within just one retailer, let alone the offering available by the number of fragrance outlets the high street has to offer.

In order to reinforce the notion that this is THE destination for the olfactory individuality the mass brands cannot offer, the store should work with niche perfumers to create exclusive scents (Mintel, 2013), specially designed to suit the tastes of this consumer, only available to purchase at Above the Stench.

Therefore, the product range available at Above the Stench & Other Stories is of the upmost importance. The store will represent the breadth of niche perfumery, stocking a considered selection of niche brands and interesting scents, to further promote this point of difference to the mainstream offering (see Appendix B for profiles of brands in the niche sector).

So as not to detract from the value of the products nor to tarnish their quality, the prices points will remain the same as each brand’s recommended retail prices. Although niche perfumes tend to be more expensive than the mainstream offerings, insights from the focus group (see Appendix F) revealed that concern over price is more a subject of comparing value to quality. They generally obtain scent through gifting (see Appendix F), the price isn’t necessarily the most important factor.

“Consistency is the only way to cut through the clutter of contemporary noise” (Lindstrom, 2010:16) and therefore, the visual merchandising of the fragrance department will match those of the rest of the store. The aesthetics of the niche brands stocked in the store will inevitably vary, but ensuring the space in which they are homed in is visually simple and minimalistic will avoid overwhelming the consumer. The moodboard (fig 36) opposite visualizes the Above the Stench & Other Stories aesthetic language.

Reducing the cost of the scents to meet the pockets of a younger consumer would potentially devalue their worth. However, in order to not alienate this consumer base, products of varying price points would be selected to ensure that there is an entry point to niche perfume to suit most budgets. To promote Above the Stench as a trustworthy vendor, providing sample sized versions to accompany each scent purchase would allow the consumer the chance to test the scent and return the full size bottle should they change their mind. A similar initiative on The Fragrance Shop’s ecommerce site boosted sales (Mintel, 2013) and for Above the Stench & Other Stories, it would reduce the consumer worry identified through the focus group (see Appendix F) that their fragrance will smell different outside of the store environment resulting in a misjudged investment.

With shelves stacked with not only the tester bottles, but also the boxed scents to purchase, the olfactory overload of the high street retailers is hard for Generation Y consumers to contend with (see Appendix F). Above the Stench & Other

Fig 31. Above the Stench & other stories Moodboard, 2014 65

A N E D U C AT I O N “If you’ve spent years making money keeping selling overpriced snake oil, then what could possibly be the benefit from educating the consumer” (Turin, 2013: see Appendix C)

trained; frequently they understand fragrance no better than you do, and they’re fed a lot of gobbledygook by the fragrance companies. Assume everything you’re told is probably untrue.”

Following their intense commercial success, it is arguable that the current communication strategies of the mainstream brands are doing their job. As Luca Turin recommends, if it isn’t broken, then don’t try to fix it (Turin, 2013: see Appendix C). However, as niche brands do not reach as many consumers as they potentially could, education could hold the key to gaining some more attention.

Above the Stench & Other Stories could reverse this preconceived notion of fragrance retailers, owning the arena of olfactory education and subsequently reinforcing the message of niche perfumers; their true appreciation for the craft, as opposed to a desire to sell the maximum units, makes for higher quality products.

There is a market for learning more about fragrance. Mintel (2012) found that 27% of consumers would be interested in finding out more about perfume, revealing potential of a commercially viable and worthwhile investment.

“Educating consumers regarding a product’s provenance, benefits or unique properties can add shine – and even justify costs” (Stylus, 2013) and so offering an education would allow the niche brands to promote their quality and reignite the sense of luxury into fragrance. Providing key information that can inform purchasing decisions promotes a sense of transparency, building the trust of the consumer (Dion in Stylus, 2013), sparking the beginnings of a potentially fruitful relationship for both parties.

The mainstream brands are failing to provide this knowledge. The focus group (see Appendix F) revealed that some Generation Y consumers are actively seeking knowledge, but the rehearsed, robotic monologues of high street sales assistants do not provide them with the information they desire or the inspiration that would improve the luxury experience of buying fragrance. Turin and Sanchez (2008: 14) encourage consumers to “bare in mind that most sales assistants are poorly

SCENT S C H O OL

Fig 32. Scent School, 2011 There have already been attempts to provide consumers with a fragrance education: Odette Toilette runs frequent fragrance workshops, working “with many inspiring scent enthusiasts to find new ways of bringing the subject to life” (Toilette, 2013) exploring the world of perfume alongside other studies, such as poetry, mythology and nostalgia.

own perfume, with the helping hand of Sarah McCartney of 4160 Tuesdays and at a fraction of the price perfumers usually charge for bespoke formulations (Style and Then Some, 2013). For Generation Y perfume consumers, their interest in learning more about fragrance is purely in the context of making better-informed perfume choices. Unlike The Perfumistas, they will not go looking for this information and therefore, these external events mainly go unnoticed by this consumer group. By bringing this experience to the consumer in a retail environment, where her attention has already been gained, the commodity of knowledge could be better monetized to benefit the store through encouraging the sale of products.

4160 Tuesdays, a London-based niche perfumer, runs weekly workshops where consumers can learn more about fragrance (McCartney, 2013). Their ‘Petrified of Perfumeries’ events allow direct access to the brand’s perfumer, Sarah McCartney, who helps participants decipher their scent tastes and the reasons that they like specific ingredients, in order to make future perfume choices easier (McCartney, 2013).

Edutainment is a retail concept that aims to combine fun and learning to improve the store experience (Stylus, 2013), engaging consumers and evolving relationships beyond the standard vendor and customer relationship. As Generation Y consumers are “seeking brand experiences that enrich their lives beyond the shop floor” (Stylus, 2013), Above the Stench would benefit from utilizing this strategy to connect with “knowledgehungry consumers” (Stylus, 2013).

These events require an active interest by individuals to find out about, pay for and attend, and therefore tend to draw in a more dedicated crowd, namely, The Perfumistas. However, there have been attempts to bring fragrance education to the mainstream. In 2013, The House of Peroni, a pop-up venue in the heart of London, played host to Italian inspired food, drink and fashion events throughout the summer months (The House of Peroni, 2013). As part of this season, they ran workshops in which visitors could concoct their 67

“Decades ago every other industry started taking their consumers behind the curtain, and we’re fascinated by everything from how Warner Brothers makes superheroes fly on screens to how Toyota makes the cars… The perfume industry alone remains walled off like a gulag.” (Burr, 2007: 135-6)

BEHIND THE C U R TA I N Some perfumers worry that too transparent an approach to retail would reduce the marvel and magic of perfumery (Burr, 2007) allowing the consumer to see too much. However, Chandler Burr (2007: 135) compares the conundrum: “explaining a jet engine or the wing of a 787 doesn’t destroy the awesome beauty of flight. It doesn’t break the dream” (Burr, 2007: 135)

One of the main aims of Above the Stench & Other Stories will be to promote the artisanal craftsmanship of niche perfume. It will take consumers behind the curtain “letting them see behind the scenes, showing them how it all works” (Burr, 2007: 135), a quality unobtainable by the mass brands – revealing the mass manufacture of perfume in a large vat, dispersed into thousands of bottles by machinery doesn’t hold the same allure as a carefully handcrafted product. Niche brands can use this to their advantage.

Generation Y value experiences (Stylus, 2013), and a retail environment is a prime time for a brand to give it to them. The store will promote and explain the art of perfume creation through informative and imaginative visual merchandising. Brands stocked within the store could take up residency, creating perfumes on demand in front of the consumer, talking them through the process of experimenting to find the perfect combination of notes. This experience will create a stronger bond between the consumer and their product, and ultimately the brand, encouraging them to return when their dressing table needs restocking.

Fig 33. Perfumery Equipment, 2013 68

Fig 34. Fragrance Ingredients, 2012

AU DI E N C E PA R T I C I PAT I O N REQUIRED Another element of edutainment that allows brands to â&#x20AC;&#x153;build closer relationships with consumers, entertain them and source ideasâ&#x20AC;? (Stylus, 2012) is involving the consumer in creative processes giving them the means to express their creativity.

The store would implement this idea through a competition in which customer scents would then be on display within the store for other customers to experience. Without packaging or branding at this stage, it would reinforce the message of niche perfumers that the quality of the smell is the most important factor. Visitors to the store would vote for their favourite scent, and then the winning fragrance would then be created on a limited scale, redefining the Above the Stench as not just a space housing other brands, but also as a niche perfumer in itâ&#x20AC;&#x2122;s own right.

Fuelling this consumer creator trend, Above the Stench could give consumers the opportunity to become their own perfumers, holding workshops that guide them through the creation of their own scent. Not only will this feed the desire for these consumers to wear a scent unique to them (see Appendix F) it will add another layer of communication with the consumer, making them become part of the brand (Stylus, 2012).

P E R S ONAL SCENT S H OP P E R S As “millennial’s trust people over brands” (Bazaar Voice, 2012) store staff are vital in engaging the consumer. Their key role would be to help find the customer their perfect scent. The Personal Scent Shoppers do not necessarily need to be trained perfumers or olfactory scientists, but their knowledge should come from an increased interest in perfume products. The Perfumistas would make the ultimate sales assistants; with their heightened passion, interest and knowledge, they could inspire and excite consumers as they share their knowledge and first hand experiences of niche perfume.

Fig 35. Stench would extend the experience beyond the moment the consumer leaves the premises.

In order to further aid their decision journey, upon arrival in store, the Personal Scent Shoppers would prompt the customer to answer a questionnaire regarding their fragrance tendencies: the perfume the currently wear, scents they hate and fragrance families they tend to enjoy.

“Packaging – as the final influence in the buying process – is prime space for an education based sell” (Stylus, 2013). Although products bought in store will be packaged in their brand’s respective packaging, Above the Stench & Other Stories information cards could be included within the store’s bags to provide information on the next steps to take with the new purchase. It would suggest useful tips such as the best places on the body to apply perfume, how best to store the bottle to prolong its lifespan and perhaps similar scents as suggestions for future purchases.

The sales assistant would then dissect this information, explaining to the customer about each of the notes and the ingredients they like, guiding them towards particular brands or fragrance families. The full customer service experience would then include a customized curation of perfumes, whereby the Personal Scent Shopper would choose scents based on the identified perfume personality. The focus group revealed that consumers tend to smell around ten fragrances in one visit to a store before getting bored (see Appendix F), so an informed selection of ten perfumes would be presented to the customer, to make the full offering of the store a little less daunting.

As these consumers tend to receive fragrances as gifts (see Appendix F), it is possible that purchases will not be made on the same day as the original visit. Should the consumer not make a purchase, personalized reminders of the customer’s favourite fragrances would be provided. A store database would allow relatives to return to the store armed with the information required to purchase the gift.

The dedicated attention of a Personal Scent Shopper would make the process of buying a new perfume feel more special, something the consumer craves (see Appendix F), reaffirming the sense of allure and indulgence of the product.

Providing the Generation Y consumer with a tangible reminder of their experience at Above the Stench should encourage them to return or recommend the service provided to friends who are also on the scent hunt.

To prolong consumer engagement, Above the 70

T OP NOTES The research of the market and this new consumer identified four main opportunities for the niche brands to make their own: reigniting the allure of perfumery lost through the proliferation of the mass market, providing Generation Y consumers with the education to improve their scent purchasing decisions, improving the current perfume retail experience and eliminating the choice trauma induced by packed perfume shelves. Answering each of these opportunities, Above the Stench, a new fragrance retailer could provide the ultimate channel to the Generation Y consumer. Utilizing their established Generation Y consumer base, and complimenting their attention to quality craftsmanship, & Other Stories offers the ultimate retail collaboration to bring niche perfumery under the radar of the new demographic. Above The Stench & Other Stories would protect the niche values of the fragrance brands whilst providing the consumers with the engaging retail experience they crave, through Personal Perfume Shoppers, superior customer service and promoting the craftsmanship behind the products. Utilizing the artisanal qualities that make them â&#x20AC;&#x2DC;nicheâ&#x20AC;&#x2122;, these brands could promote themselves as the ultimate antidote to commercial scents of the mainstream, standing out in the saturated market without forfeiting their niche values.

S H AN N ON P E T E R