Fragrances - US, September 2012

Transcription

Fragrances - US,
September 2012
Published by
IMPORTANT WARNING
Mintel Group Ltd
351 W. Hubbard Street, 8th Floor
Chicago IL 60654
tel: 312 932 0400
fax: 312 932 0469
1. On behalf of your organization (the “Purchaser”) you have purchased a single
license personal to you to access, read and use this Mintel report, and you are
hereby agreeing prior to reading any of the report itself, on behalf of the Purchaser,
that it will comply with Mintel’s conditions of supply hereafter described. Once the
Purchaser, or any person within it, has had access to any report or part of a report
published by Mintel Group Limited dba Mintel Americas (a “Mintel report”) protected
under these conditions, you are agreeing that your organization as a whole, and the
individuals within it, are deemed to be aware of, and consent to, these conditions
hereafter in respect of all Mintel reports. No purchase order issued by the Purchaser
will modify or amend these conditions, even where the purchase order is signed by
Mintel.
Sales hotline: 312 943 5250
email: [email protected]
© Mintel Group Limited. Statistics in
this report are the latest
available at the time of research
NOTE: This publication is issued as a
series of reports. Each report is a
complete work in itself, which is
available separately or as part of a
subscription.
www.mintel.com
2. The purchase, use or reading of any Mintel report that contains SymphonyIRI
Group InfoScan data by (or disclosure to) a Non-Participating Retailer or its
employees (or agents/professional advisors working on its account) is prohibited. A
Non-Participating Retailer is a retailer and its subsidiaries each as defined by
SymphonyIRI, where it, or one of its associated companies, has declined to
participate in SymphonyIRI’s InfoScan information service by not providing its data
to SymphonyIRI. A current written list of Non-Participating Retailers and subsidiaries
(as notified to Mintel by SymphonyIRI) is available from Mintel at any time, or as
linked through the latest set of terms and conditions as displayed continuously on
Mintel’s website at http://www.mintel.com/terms. The Non-Participating Retailers as
at May 24, 2010 are Walmart, Sam’s Club, Costco, Lidl, and Aldi.
3. Unless otherwise agreed in writing in advance by Mintel, this Mintel report and all other Mintel reports (in whole or in part) may
not be sold, nor passed on, communicated or disseminated in any form (including within its original covers), nor access granted, to
any third party (including but not limited to clients/potential clients /suppliers /agents /partners in other
ventures/accountants/solicitors/bankers/brokers/ licensees) , or to any subsidiary, associated or holding company (whether direct
or indirect) of the subscriber, whether trading or non-trading, or to any entity trading under the same umbrella trading name where
the direct equity interest is different in any way to that of the subscriber. The Purchaser is agreeing that in the event that any of its
personnel inadvertently do so allow unlicensed usage or access by others as detailed above, that it will account to Mintel in full for
the sales proceeds at the then current prevailing single copy price as set by Mintel from time to time, for each and every
occurrence, and further that the Purchaser fully and effectually indemnifies Mintel in respect of any claim howsoever arising by any
such subsequent unlicensed user against Mintel. Similarly, if any other piece of identified Mintel material, amounting to a section or
more, becomes available to the Purchaser by virtue of a breach of this term by any third party, which is then read or used by the
Purchaser in any way, that the Purchaser is hereby agreeing to purchase a copy of the report containing that piece of intellectual
property from Mintel at the then current prevailing single copy price as set by Mintel from time to time for each and every
occurrence, (unless at Mintel’s sole discretion the money is sought and subsequently remitted by the original subscriber), and to
abide by Mintel’s license terms.
4. The Purchaser acknowledges that all materials and information contained in Mintel reports are the copyright property and
confidential information of Mintel and are protected inter-alia by the Copyright Law of the United States of America and Related
Laws Contained in Title 17 of the United States Code and other intellectual property rights and also by the terms of this agreement,
and that no rights in any of the materials are transferred to the Purchaser. The Purchaser agrees the Copyright Law of the United
States of America and Related Laws Contained in Title 17 of the United States Code is only relevant where Mintel has not sought
and secured protection elsewhere in these conditions, or indeed where sections are expressly excluded, without prejudicing the
enforceability of the remainder of the Title. The Purchaser agrees that the provisions of Section 107 of Title 17 of the United States
Code and sections 29 and 30 of the Copyright, Designs and Patents Act 1988 shall not apply to the use to be made by the Purchaser
of the Report. The Purchaser undertakes that it will not copy, reproduce, print or store in any manner (electronic or otherwise),
extract or transmit in any form or otherwise deal with in any way the whole or part of the data, materials or information contained
in this Mintel report.
5. The Purchaser (or any subsequent user, whether licensed or unlicensed who reads this report) agrees it will not place financial
reliance upon any figure, statement or inference contained within any Mintel report, or invite investment from others, without first
obtaining the written consent of Mintel’s Company Secretary so to do. In the event that the Purchaser (or any subsequent user,
whether licensed or unlicensed) does not follow this procedure, it (or any subsequent user) agrees to fully and effectually indemnify
Mintel against any claims, howsoever arising, and to draw specific attention to the fact that this consent has not been obtained.
6. The Purchaser is responsible for complying with all local, state and federal laws pertaining to the use and disclosure of any data.
The Purchaser acknowledges that the Report may include views, opinions, and recommendations of individuals or organizations
whose thoughts are deemed of interest, but that Mintel does not thereby endorse such views, give investment or professional
advice, or advocate any course of action.
7. The Purchaser agrees that the report is provided “as is”; Mintel makes no representation or warranty with respect to the
accuracy, completeness, or currentness; and Mintel specifically disclaims any other warranty, express or implied or statutory,
including any warranty of merchantability or fitness for a particular purpose. Mintel shall not be liable on account of any such errors,
omissions, delays, or losses. The Purchaser agrees that in no event will Mintel be liable for the results of the purchasers use of the
report, purchasers inability or failure to conduct its business, or for indirect, special, consequential, or exemplary damages (even if
advised of the possibility of such damages) arising from the use of or inability to use the report or any other provision of this
agreement, such as, but not limited to, loss of revenue, anticipated profits or business, or the cost of procuring a substitute report.
In the event state law regarding exclusion or limitation of warranties or damages may limit the applicability of the above limitations,
the total aggregate liability of Mintel for any claims, losses or damages shall not exceed the charges payable by the purchaser for
the report.
The Purchaser agrees to indemnify, defend and hold Mintel harmless from and against any claim made by any third party arising
from or in any way connected with the use of the Report by Purchaser.
Table of contents
Fragrances
US, September 2012
SCOPE AND THEMES ...............................................................................................................................10
What you need to know ......................................................................................................................10
Definition .............................................................................................................................................10
Data sources .......................................................................................................................................11
Sales data .............................................................................................................................................................. 11
Consumer survey data ........................................................................................................................................... 11
Advertising creative ................................................................................................................................................ 12
Abbreviations and terms .....................................................................................................................12
Abbreviations .......................................................................................................................................................... 12
Terms ..................................................................................................................................................................... 12
EXECUTIVE SUMMARY .............................................................................................................................14
The market ..........................................................................................................................................14
Figure 1: Total U.S. sales and fan chart forecast of fragrances, at current prices, 2007-17 .................................... 14
Market factors .....................................................................................................................................15
Aging population creates challenges, opportunities ................................................................................................ 15
Figure 2: U.S. population, by age, 2012-17 ............................................................................................................ 15
Hispanic, Asian populations growing and engaged in the category ........................................................................ 15
Figure 3: U.S. population, by race/Hispanic origin 2012-17 .................................................................................... 16
Economy still struggling, but fragrance category gaining momentum ..................................................................... 16
Figure 4: DPI, 2007-March 2012............................................................................................................................. 17
Retail channels ...................................................................................................................................17
Figure 5: Sales of fragrances, by channel, 2012 ..................................................................................................... 18
Key players .........................................................................................................................................18
The consumer .....................................................................................................................................18
Perfume has the highest use among traditional forms, but usage frequency is low ................................................ 18
Figure 6: Fragrance usage, traditional forms— any, daily, or occasionally wear, May 2012 ................................... 19
Line extension items add benefits, increase usage frequency ................................................................................ 19
Figure 7: Fragrance usage, line extensions—any, daily, or occasionally wear, May 2012 ...................................... 20
Added benefits garner high consumer interest ....................................................................................................... 20
Figure 8: Interest in product innovations, properties, May 2012 .............................................................................. 21
Young men are most likely to be interested in innovative product forms ................................................................. 21
Figure 9: Interest in product innovation forms—any interest, May 2012 ................................................................. 22
What we think......................................................................................................................................22
ISSUES IN THE MARKET ..........................................................................................................................23
How can brands sustain long-term growth (or brand loyalty)? ...........................................................23
How will increasing regulation impact the category? ..........................................................................24
What role will technology play in the fragrance category? .................................................................24
INSIGHTS AND OPPORTUNITIES ............................................................................................................26
Opportunity to add efficacy and value with added benefits ................................................................26
Beyond luxury .....................................................................................................................................26
Natural and sustainable ......................................................................................................................27
Multicultural consumers, Millennials hold greatest opportunity ..........................................................27
A sensory journey ...............................................................................................................................28
TREND APPLICATIONS ............................................................................................................................29
Trend: Mood to Order .........................................................................................................................29
Trend: Extend My Brand .....................................................................................................................30
2015 Trend: Brand Intervention ..........................................................................................................31
MARKET SIZE AND FORECAST ...............................................................................................................33
Key points ...........................................................................................................................................33
Sales continue to recover after sharp declines during recession .......................................................33
© Mintel Group Ltd. All rights reserved.
iii
Table of contents
Fragrances
US, September 2012
Category expected to see sales growth through 2017 .......................................................................33
Sales and forecast of fragrances ........................................................................................................33
Figure 10: Total U.S. retail sales and forecast of fragrances, at current prices, 2007-17 ........................................ 33
Figure 11: Total U.S. retail sales and forecast of fragrances, at inflation-adjusted prices, 2007-17 ........................ 34
Fan chart forecast ...............................................................................................................................34
Figure 12: Total U.S. sales and fan chart forecast of fragrances, at current prices, 2007-17 .................................. 35
Walmart sales .....................................................................................................................................35
MARKET DRIVERS ....................................................................................................................................36
Key points ...........................................................................................................................................36
Aging population creates challenges for the fragrance industry .........................................................36
Figure 13: U.S. population, by age, 2007-17 .......................................................................................................... 37
Hispanic and Asian populations are growing and engaged in the category .......................................37
Figure 14: U.S. population, by race/Hispanic origin 2007-17 .................................................................................. 38
Economic recovery slow but fragrance category growing ..................................................................38
Figure 15: Thomson Reuters/University of Michigan’s index of consumer sentiment, 2006-Q2 2012 ..................... 38
Figure 16: DPI, 2007-March 2012........................................................................................................................... 39
Bath and shower products contribute to category growth ..................................................................39
Figure 17: Total U.S. retail sales and forecast of soap, bath, and shower products, at current prices, 2006-16 ..... 40
Figure 18: Total U.S. retail sales and forecast of liquid body wash, at current prices, 2006-16 ............................... 40
COMPETITIVE CONTEXT ..........................................................................................................................41
Body care products add fragrance and skincare benefits ..................................................................41
Consumers seeking scent through laundry ........................................................................................42
Figure 19: Interest in product innovations—Scent extensions—Any interested, May 2012 ..................................... 43
Experiencing fragrance without wearing it ..........................................................................................43
Figure 20: Interest in product innovations—Scent Extensions—Any interested, May 2012 .................................... 44
SEGMENT PERFORMANCE ......................................................................................................................45
Key points ...........................................................................................................................................45
Women’s and men’s segments showing healthy growth ....................................................................45
Sales of fragrances, by segment ........................................................................................................45
Figure 21: Sales of fragrances, segmented by type, 2010 and 2012 ...................................................................... 45
SEGMENT PERFORMANCE—WOMEN’S FRAGRANCE ........................................................................46
Key points ...........................................................................................................................................46
Women’s fragrance segment healthy and growing ............................................................................46
Sales and forecast of women’s fragrance ...........................................................................................46
Figure 22: Sales and forecast of women’s fragrance, at current prices, 2007-17 .................................................... 46
SEGMENT PERFORMANCE—MEN’S FRAGRANCE ..............................................................................47
Key points ...........................................................................................................................................47
Men’s segment strong, but still recovering .........................................................................................47
Sales and forecast of men’s fragrance ...............................................................................................47
Figure 23: Sales and forecast of men’s fragrance, at current prices, 2007-17 ........................................................ 47
RETAIL CHANNELS ...................................................................................................................................48
Key points ...........................................................................................................................................48
Growth driven by “other” channels, leads category in sales growth ...................................................48
Despite stronger commitment to beauty, drug stores lose share .......................................................48
Sales of fragrances, by channel .........................................................................................................49
Figure 24: Sales of fragrances, by channel, 2010 and 2012 ................................................................................... 49
RETAIL CHANNELS—SUPERMARKETS .................................................................................................50
Key points ...........................................................................................................................................50
iv
Table of contents
Fragrances
US, September 2012
Supermarket sales continue to decline ...............................................................................................50
Supermarket sales of fragrances ........................................................................................................50
Figure 25: Supermarket sales of fragrances, at current prices, 2007-12 ................................................................. 50
RETAIL CHANNELS—DRUG STORES.....................................................................................................51
Key points ...........................................................................................................................................51
Despite efforts to improve beauty offerings, drug stores lose share ..................................................51
Drug store most popular retailer for men’s fragrance purchases .......................................................51
Figure 26: Drug store sales of fragrances, at current prices, 2007-12 .................................................................... 51
RETAIL CHANNELS—OTHER RETAIL CHANNELS ...............................................................................52
Key points ...........................................................................................................................................52
Strong sales in the “other” segment are driving category growth .......................................................52
Women more likely to shop specialty beauty over FDMx channels ...................................................52
Other retail channels sales of fragrances ...........................................................................................53
Figure 27: Other sales of fragrances, at current prices, 2007-12 ............................................................................ 53
LEADING COMPANIES ..............................................................................................................................54
Key points ...........................................................................................................................................54
Category showing growth but sales decline in FDMx .........................................................................54
Sales gains by Unilever and P&G driven by men’s segment .............................................................54
Manufacturer sales of fragrances .......................................................................................................55
Figure 28: FDMx sales of fragrances by leading companies, 2011 and 2012 ......................................................... 55
BRAND SHARE—WOMEN’S FRAGRANCE .............................................................................................56
Key points ...........................................................................................................................................56
Women’s fragrance struggles in FDMx ...............................................................................................56
Mass fragrance products showing signs of success ..........................................................................56
Struggles continue for Coty Beauty in FDMx ......................................................................................57
Manufacturer sales of women’s fragrances ........................................................................................58
Figure 29: FDMx sales of women’s fragrances by leading companies, 2011 and 2012 .......................................... 58
BRAND SHARE—MEN’S FRAGRANCE ...................................................................................................61
Key points ...........................................................................................................................................61
Men’s fragrance growth slows though faring better than women’s.....................................................61
Unilever and P&G continue to have success in men’s segment ........................................................61
Traditional cologne brands struggle in FDMx .....................................................................................61
Manufacturer sales of men’s fragrances .............................................................................................62
Figure 30: FDMx sales of men’s fragrances by leading companies, 2011 and 2012............................................... 62
INNOVATIONS AND INNOVATORS ..........................................................................................................64
NEW PRODUCT LAUNCH TRENDS .................................................................................................................64
Celebrity fragrances still hot................................................................................................................64
Unisex fragrances surge in popularity ................................................................................................65
Figure 31: Fragrance product introductions, by subcategory, 2007-12 ................................................................... 65
Body sprays ........................................................................................................................................66
PRODUCT INNOVATIONS .............................................................................................................................67
Location, location, location ..................................................................................................................67
Take me out to the ballgame ..............................................................................................................68
To the extreme ....................................................................................................................................69
Get it while it lasts ...............................................................................................................................70
MARKETING STRATEGIES .......................................................................................................................71
v
Table of contents
Fragrances
US, September 2012
Overview of the brand landscape .......................................................................................................71
Brand analysis: Chanel .......................................................................................................................71
Figure 32: Chanel logo ........................................................................................................................................... 71
Figure 33: Brand analysis of Chanel No. 5, 2012.................................................................................................... 71
Online initiatives ..................................................................................................................................................... 72
Figure 34: Chanel website ...................................................................................................................................... 72
TV presence ........................................................................................................................................................... 72
Figure 35: Chanel, television ad, 2012 ................................................................................................................... 73
Brand analysis: Selena Gomez...........................................................................................................73
Figure 36: Selena Gomez logo ............................................................................................................................... 73
Figure 37: Brand analysis of Selena Gomez, 2012 ................................................................................................. 73
Figure 38: Selena Gomez website .......................................................................................................................... 74
Brand analysis: Curve Appeal.............................................................................................................74
Figure 39: Curve Appeal logo ................................................................................................................................. 75
Figure 40: Brand analysis of Curve Appeal for Women and Men, 2012 .................................................................. 75
Figure 41: Curve website ........................................................................................................................................ 76
Print and other ........................................................................................................................................................ 77
FRAGRANCE USAGE OVERVIEW ...........................................................................................................79
Key points ...........................................................................................................................................79
Highest usage among lower-ticket items ............................................................................................79
Majority of scented products only used occasionally ..........................................................................79
Figure 42: Fragrance usage, May 2012 .................................................................................................................. 80
Fragrance wearers more likely to use all product forms .....................................................................80
Figure 43: Fragrance usage, by fragrance usage, May 2012 .................................................................................. 81
Brand usage ........................................................................................................................................81
Figure 44: Brands of perfume, cologne, and toilet water used, by gender, January 2011-March 2012 ................... 82
FRAGRANCE USAGE BY TYPE—TRADITIONAL FORMS .....................................................................83
Key points ...........................................................................................................................................83
Highest fragrance usage among men and women aged 18-34..........................................................83
Figure 45: Fragrance usage—traditional forms, by gender and age, May 2012 ...................................................... 84
FRAGRANCE USAGE BY TYPE—LINE EXTENSIONS ...........................................................................85
Key points ...........................................................................................................................................85
Lower-priced scented products lead the way .....................................................................................85
Figure 46: Fragrance usage—line extensions, by gender and age, May 2012 ....................................................... 86
Aftershave more likely to be worn every day by older men ................................................................87
Figure 47: Aftershave usage, by male and age, May 2012 ..................................................................................... 87
Old Spice most popular aftershave or cologne brand with men .........................................................87
Figure 48: Brands of aftershave lotion or cologne used, among men, January 2011-March 2012 .......................... 88
TRYING A NEW FRAGRANCE ..................................................................................................................89
Key points ...........................................................................................................................................89
Smelling is the most frequent method for learning about fragrance ...................................................89
Word of mouth popular with young men .............................................................................................89
Figure 49: Steps taken before trying a new fragrance—learning about a scent, by gender and age, May 2012 ..... 90
Visiting retailers is the most popular way to try fragrances ................................................................90
Figure 50: Steps taken before trying a new fragrance—trying a scent, by gender and age, May 2012 ................... 91
PURCHASE LOCATIONS ..........................................................................................................................92
Key points ...........................................................................................................................................92
Drug stores most popular purchase location, but losing ground to other channels............................92
Figure 51: Fragrance purchase locations, May 2012 .............................................................................................. 93
vi
Table of contents
Fragrances
US, September 2012
Specialty retailers most popular with young women; men more likely to shop at department stores 93
Figure 52: Fragrance purchase locations, by gender and age, May 2012............................................................... 94
ATTITUDES TOWARD WEARING FRAGRANCE .....................................................................................96
Key points ...........................................................................................................................................96
Nearly half of fragrance wearers like to alternate between scents .....................................................96
Figure 53: Attitudes toward wearing fragrances, by gender and age, May 2012 ..................................................... 97
FRAGRANCE PREFERENCES ..................................................................................................................98
Key points ...........................................................................................................................................98
Young women most overwhelmed by fragrance choices ...................................................................98
Figure 54: Fragrance preferences, by gender and age, May 2012 ......................................................................... 99
Income impacts fragrance preferences ..............................................................................................99
Figure 55: Fragrance preferences, by household income, May 2012 ................................................................... 100
INTEREST IN PRODUCT INNOVATIONS—PROPERTIES ....................................................................101
Key points .........................................................................................................................................101
Added benefit fragrances could generate increased usage occasions ............................................101
Figure 56: Interest in product innovations—properties—Any interested, by gender and age, May 2012 .............. 102
INTEREST IN PRODUCT INNOVATIONS—FORMS...............................................................................103
Key points .........................................................................................................................................103
Innovative product forms provide creative sampling opportunities ...................................................103
Figure 57: Interest in product innovations—forms—Any interested, by gender and age, May 2012 ..................... 103
Young men express the highest interest in innovative product forms ..............................................104
Figure 58: Interest in product innovations—forms—Very interested, by male and age, May 2012 ....................... 104
INTEREST IN PRODUCT INNOVATIONS—SCENT EXTENSIONS .......................................................105
Key points .........................................................................................................................................105
Scent extensions create opportunity for lower-priced, value added items .......................................105
Figure 59: Interest in product innovations—scent extensions—Any interested, by gender and age, May 2012 .... 105
ATTITUDES TOWARD FRAGRANCE PACKAGING ..............................................................................106
Key points .........................................................................................................................................106
Product refills improve value perception and support conservation .................................................106
Packaging and product color can help support benefits ...................................................................106
Figure 60: Attitudes toward fragrance packaging, by gender and age, May 2012 ................................................. 107
SCENT PREFERENCE .............................................................................................................................108
Key points .........................................................................................................................................108
Fresh scents most popular with all respondents...............................................................................108
Figure 61: Scent preference, by gender and age, May 2012 ................................................................................ 109
RACE AND HISPANIC ORIGIN ................................................................................................................110
Key points .........................................................................................................................................110
Multicultural consumers highly engaged in the category ..................................................................110
Figure 62: Fragrance usage, by race/Hispanic origin, any wear or every day, May 2012 ..................................... 111
Figure 63: Brands of perfume, cologne, and toilet water used, by race/Hispanic origin, January 2011-March
2012 ..................................................................................................................................................................... 112
Black fragrance wearers like to experiment with fragrance ..............................................................112
Figure 64: Attitudes toward wearing fragrances, by race/Hispanic origin, May 2012 ............................................ 113
Figure 65: Fragrance preferences, by race/Hispanic origin, May 2012 ................................................................. 114
Asian and Hispanic fragrance wearers express interest in fragrance product innovations ..............114
Figure 66: Interest in product innovations—Any interested, by race/Hispanic origin, May 2012 ........................... 115
vii
Table of contents
Fragrances
US, September 2012
CLUSTER ANALYSIS...............................................................................................................................116
Figure 67: Target clusters, May 2012 ................................................................................................................... 116
Cluster 1: Seekers ............................................................................................................................116
Characteristics ...................................................................................................................................................... 116
Opportunity ........................................................................................................................................................... 117
Cluster 2: Uninvolved ........................................................................................................................117
Opportunity ........................................................................................................................................................... 117
Cluster 3: Influencers ........................................................................................................................118
Opportunity ........................................................................................................................................................... 118
Cluster characteristic tables ..............................................................................................................119
Figure 68: Fragrance usage, by target clusters, May 2012 ................................................................................... 119
Figure 69: Fragrance preferences, by target clusters, May 2012 .......................................................................... 119
Figure 70: Attitudes toward fragrance packaging, by target clusters, May 2012 ................................................... 120
Figure 71: Interest in product innovations– Any interested, by target clusters, May 2012 ..................................... 120
Figure 72: Steps taken before trying a new fragrance, by target clusters, May 2012 ............................................ 121
Figure 73: Steps taken before trying a new fragrance, by target clusters, May 2012 ............................................ 121
Cluster methodology .........................................................................................................................121
CUSTOM CONSUMER GROUPS—TEENS .............................................................................................123
Key points .........................................................................................................................................123
Aftershave use increases as male teens age ...................................................................................123
Figure 74: Use of aftershave lotion and cologne, by male and age, October 2010-November 2011 ..................... 123
Axe is the most used brand among male teens, though usage drops with age ...............................124
Figure 75: Use of aftershave lotion or cologne, by male and age, October 2010-November 2011 ....................... 124
Cologne and perfume are preferred forms among teens .................................................................124
Figure 76: Use of perfume, cologne, and toilet water, by gender and age, October 2010-November 2011 .......... 125
Bath & Body Works tops the list for female teens.............................................................................125
Figure 77: Use of perfume, cologne, and toilet water, by gender and age, October 2010-November 2011 .......... 126
Young female teens most likely to be influenced by celebrities .......................................................126
Figure 78: Attitudes about celebrities, by gender and age, October 2010-November 2011 .................................. 126
Figure 79: Celebrity fragrance brand usage, by those who like to buy the same products that celebrities use,
October 2010-November 2011 ............................................................................................................................. 127
KEY HOUSEHOLD PURCHASE MEASURES—SYMPHONYIRI GROUP BUILDERS PANEL DATA .128
OVERVIEW OF SHAVING LOTION/MEN’S FRAGRANCES .................................................................................128
Consumer insights on key purchase measures ................................................................................128
Brand map.........................................................................................................................................128
Figure 80: Brand map, selected brands of shaving lotion/cologne/talc, by household penetration, 52 weeks
ending June 26, 2011 ........................................................................................................................................... 129
Brand leader characteristics .............................................................................................................129
Key purchase measures ...................................................................................................................130
Figure 81: Key purchase measures for the top brands of shaving lotion/cologne/talc, by household penetration,
52 weeks ending June 26, 2011 ........................................................................................................................... 130
APPENDIX—OTHER USEFUL CONSUMER TABLES ...........................................................................131
Fragrance usage ...............................................................................................................................131
Figure 82: Fragrance usage, by gender, May 2012 .............................................................................................. 131
Trying a new fragrance .....................................................................................................................133
Figure 83: Steps taken before trying a new fragrance, by gender, May 2012 ....................................................... 133
Figure 84: Steps taken before trying a new fragrance, by gender, May 2012 ....................................................... 133
Purchase locations ............................................................................................................................134
Figure 85: Fragrance purchase locations, by household income, May 2012 ......................................................... 134
Interest in product innovations ..........................................................................................................136
Figure 86: Interest in product innovations, May 2012 ........................................................................................... 136
viii
Table of contents
Fragrances
US, September 2012
APPENDIX—SYMPHONYIRI BUILDERS PANEL DATA DEFINITIONS................................................137
SymphonyIRI Consumer Network Metrics ........................................................................................137
APPENDIX—TRADE ASSOCIATIONS ....................................................................................................139
APPENDIX: RESEARCH METHODOLOGY ............................................................................................142
CONSUMER RESEARCH ............................................................................................................................142
Primary Data Analysis .......................................................................................................................142
Sampling .............................................................................................................................................................. 142
Global Market Insite (GMI).................................................................................................................................... 142
Secondary Data Analysis ..................................................................................................................142
Experian Simmons National Consumer Studies ................................................................................................... 143
Statistical Forecasting .......................................................................................................................146
Statistical modelling .............................................................................................................................................. 146
Qualitative insight ................................................................................................................................................. 146
The Mintel fan chart .............................................................................................................................................. 146
Weather analogy .................................................................................................................................................. 147
APPENDIX: WHAT IS MINTEL? ..............................................................................................................149
Mintel provides industry-leading market intelligence ........................................................................149
Mintel Solutions: ................................................................................................................................149
Mintel Oxygen Reports ......................................................................................................................................... 149
Mintel GNPD ........................................................................................................................................................ 149
Mintel Inspire ........................................................................................................................................................ 149
Mintel Beauty Innovation ...................................................................................................................................... 149
Mintel Menu Insights ............................................................................................................................................. 150
Mintel Research Consultancy ............................................................................................................................... 150
Mintel Comperemedia .......................................................................................................................................... 150
ix
Scope and Themes
Fragrances
US, September 2012
Scope and Themes
What you need to know
The U.S. fragrance market is experiencing healthy growth after seeing declines associated with the
economic recession. Due to estimated growth of 6% in 2012, the industry is expected to reach more than
$3.5 billion in sales by the end of the year. Growth is being driven by improved consumer confidence,
increased product launches, and strong performance in retail channels outside of FDMx. Positive sales
growth is forecast for both the women’s and men’s segments through 2017. In the women’s segment,
celebrity and fashion house fragrances continue to remain popular, though more unique positioning such
as destination based fragrances are paving the way for increased innovation in the category. The men’s
segment continues to see growth in FDMx from power players like Axe and Old Spice driven by items
like body sprays.
In addition to strong sales growth, responses to Mintel’s exclusive consumer survey indicate that the time
is ripe for increased product innovation in the fragrance category. Survey results show strong consumer
interest in added product benefits like mood boosting and anti-aging, as well as innovative forms and
extending scent into additional product categories. Healthy category growth combined with increased
product innovation makes this an exciting time for the fragrance industry.
Definition
This report builds on the analysis presented in Mintel’s Fragrances—U.S., September 2011, as well as
Women’s Fragrances—U.S., September 2010 and the September 2008, December 2007, November 2006,
October 2004, and March 2002 reports of the same tile, and Men’s Fragrances—U.S., November 2010 and
the October 2008, November 2007, December 2006, November 2004, and April 2002 reports of the same
title.
For the purposes of this report, Mintel has used the following definitions:
This report covers the U.S. market for fragrances in all forms (i.e., spray, pour, solid, oil).
The market can be broadly segmented according to a product’s strength (the grade of alcohol denotes the
percentage of alcohol to water) and/or form including:

Perfume or an eau de parfum (EDP) usually contains 15-25% fragrance oil in pure ethyl alcohol.

Eau de toilette (EDT) is a 6-15% solution of fragrance oil in an 80% grade of alcohol.

Cologne is a 3-6% solution of fragrance oil in a 70% grade of alcohol.

Aftershaves

Scented body powders and talcs

Gift packs.
10
Scope and Themes

Fragrances
US, September 2012
Unisex fragrances (not a separate segment in sales data but those that are sold in FDMx channels are
included in SymphonyIRI data as either a men’s or women’s fragrance. Unisex fragrances are featured
as a separate segment in Innovations and Innovators.)
Scented shower gels, body lotions, and body sprays are not included in market/sales data but are included
in consumer analysis.
Excluded from the scope of this report are line extensions of other men’s/women’s personal care products
such as:

Deodorants or antiperspirants

Shaving products such as shaving creams, shaving gels, preshave for electric razors

Hair gels or other styling products

Shampoos or conditioners.
Value figures throughout this report are at retail selling prices (rsp) excluding sales tax unless
otherwise stated.
Data sources
Sales data

Market Size and Forecast, Segment Performance, and Retail Channels are based on SymphonyIRI
Group InfoScan® Reviews, U.S. Census Bureau, Economic Census.

Leading Companies and Brand Share are based on SymphonyIRI Group InfoScan® Reviews.
Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to
explore consumer use of and attitudes toward fragrances. Mintel was responsible for the survey design,
data analysis, and reporting. Fieldwork was conducted in May 2012 among a sample of 2,000 adults aged
18+ with access to the internet.
Mintel selects survey respondents so that they are proportionally balanced to the entire U.S. adult
population based on the key demographics of gender, age, household income, and region. Mintel also
slightly oversamples, relative to the population, respondents that are Hispanic or black to ensure an
adequate representation of these groups in the survey results. Please note that Mintel surveys are
conducted online and in English only. Hispanics who are not online and/or do not speak English are not
included in the survey results.
Mintel has also analyzed data from Experian Consumer Research, using the Experian Simmons National
Consumer Study (NCS), the Experian Simmons National Hispanic Consumer Study (NHCS), and the
Experian Simmons Teen Study.
11
Scope and Themes
Fragrances
US, September 2012
The NCS/NHCS was carried out during January 2011-March 2012 and the results are based on the sample
of 24,330 adults aged 18+, with results weighted to represent the U.S. adult population. The Simmons
Teen Study was conducted during October 2010-November 2011 and based on a sample of 1,776
teenagers aged 12-17, with results weighted to represent the U.S. teen population.
While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to
each other. Please note that the responses for race (white, black, Asian, Native American, or other race)
will overlap those that also are Hispanic, because Hispanics can be of any race.
Advertising creative
All advertising creative provided by Competitrack, the leading U.S. competitive ad tracking provider. For
Mintel reports, Competitrack monitors network, cable, spot, syndicated, public, and local television
advertising.
For further information, or to order television, magazine, newspaper, online display, online video, radio,
outdoor, viral, or cinema advertising, or alternative media, inserts, and circulars, please contact
Competitrack at [email protected], or call 718.482.4200.
Abbreviations and terms
Abbreviations
The following abbreviations are used in this report:
CPI
FDMx
FDMW
GNPD
NACS
NCS/NHCS
rsp
EDP
EDT
EPAA
EU
P&G
IFRA
RIFM
SCCS
Consumer Price Index
Food, Drug, and Mass Merchandisers, excluding Walmart—SymphonyIRI definition
Food, Drug, and Mass Merchandisers, including Walmart—SymphonyIRI definition
Global New Products Database
National Association of Convenience Stores
National Consumer Study/National Hispanic Consumer Study (Experian Simmons)
Retail selling price
Eau de parfum
Eau de toilette
European Partnership for Alternative Approaches to Animal Testing
European Union
Procter & Gamble
International Fragrance Association
Research Institute for Fragrance Materials
Scientific Committee on Consumer Safety
Terms
Fine fragrance
Traditional fragrance forms that are generally sold at a higher-price point and include
variants like parfum, eau de parfum, eau de toilette, and cologne.
12
Scope and Themes
Fragrances
US, September 2012
Generations (if discussed within this report) are defined as:
World War II
Swing Generation
Baby Boomers
Generation X
Millennials*
Matrix
Generation**
The generation born in 1932 or before. In 2012, members of this generation are
aged 80 or older.
The generation born between 1933 and 1945. In 2012, members of the Swing
Generation are between the ages of 67 and 79.
The generation born between 1946 and 1964. In 2012, Baby Boomers are between
the ages of 48 and 66.
The generation born between 1965 and 1976. In 2012, Generation Xers are
between the ages of 36 and 47.
The generation born between 1977 and 1994. In 2012, Millennials are between the
ages of 18 and 35.
The generation born from 1995 to present. In 2012, Matrices are aged 17 or
younger.
* also known as Generation Y or Echo Boomers
** previously known as Post-Millennials
In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current
prices. The CPI is defined as follows:
CPI
The Consumer Price Index is a measure of the average change over time in the prices paid
by urban consumers for a market basket of consumer goods and services.
The CPI and its components are typically used to adjust other economic series for price
changes and to translate these series into inflation-free dollars. Examples of series adjusted
by the CPI include retail sales, hourly and weekly earnings, and components of the national
income and product accounts. In addition, and in Mintel reports, the CPI is used as a
deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing
power of the consumer’s dollar measures the change in the value to the consumer of goods
and services that a dollar will buy at different dates.
The CPI is generally the best measure for adjusting payments to consumers when the intent
is to allow consumers to purchase, at today’s prices, a market basket of goods and services
equivalent to one that they could purchase in an earlier period. It is also the best measure to
use to translate retail sales into real or inflation-free dollars.
Based on Bureau of Labor Statistics definition.
13
Executive Summary
Fragrances
US, September 2012
Executive Summary
“The fragrance industry is showing strong signs of recovery after experiencing steep declines
during the recession. Both the men’s and women’s segments are expected to see sales growth over
the next five years fueled by an increase in new product launches combined with increased interest
in high end fragrances and more unique and customized fragrances appealing to today’s
demanding consumer.”
– Shannon Romanowski, Beauty & Personal Care Analyst
The market
The fragrance industry took a big hit during the recession, experiencing nearly a 12% decline through
2009. However, with improving economic stability along with increased product launches and promotions,
the category is experiencing an improved outlook. Due to estimated growth of 6% in 2012, the industry is
expected to reach more than $3.5 billion in sales by the end of the year.
FIGURE 1: TOTAL U.S. SALES AND FAN CHART FORECAST OF FRAGRANCES, AT CURRENT PRICES, 2007-17
7,000
Total Sales($ millions)
6,000
Best case (million)
$5,748
5,000
Mintel forecast
(million) 4,482
(million)
3,510
4,000
Worst case (million)
$3,216
3,000
2,000
Confidence intervals
1,000
00
2007
95%
90%
2008
2009
2010
2011
2012
2013
2014
2015
2016
Est.
Actual
Forecast
2017
70%
50%
SOURCE: MINTEL/BASED ON SYMPHONYIRI INFOSCAN® REVIEWS; U.S. CENSUS BUREAU, ECONOMIC CENSUS
14
Executive Summary
Fragrances
US, September 2012
Market factors
Aging population creates challenges, opportunities
As the aging population is expected to swell over the next five years, challenges to keep this consumer
engaged in the category will continue as use of virtually all fragrance categories decreases with age. While
the aging population does represent challenges to the industry, it also creates opportunities. Adding
functional benefits like anti-aging or mood boosting will help keep fragrances relevant and improve
perception of value, ultimately providing a way to further engage older consumers and help meet their
changing needs.
Combining consumer-relevant benefits with appealing product forms could be an opportunity for the
fragrance industry to curb some of the usage declines often seen with age in this multibillion-dollar
industry.
FIGURE 2: U.S. POPULATION, BY AGE, 2012-17
50
44
42
45
40
44
44
45
43
42
41
44
43
42
38
millions
35
30
25
20
29
23
22
21
21
19
15
10
5
0
<5
5-14 15-24 25-34 35-44 45-54 55-64 65-74 75+
2012
2017
SOURCE: MINTEL/U.S. CENSUS BUREAU, INTERIM POPULATION PROJECTIONS RELEASED 2008 (POPULATION IN 2012 AND 2017)
AND ANNUAL JULY 1 POPULATION ESTIMATES (POPULATION IN 2007)
Hispanic, Asian populations growing and engaged in the category
Another shifting demographic influence will be race/Hispanic origin. The Asian and Hispanic populations
are predicted to experience 14.2% and 15.6% growth, respectively, over the next five years compared to
the 4.9% total population growth. This is good news for the fragrance industry as these ethnic groups are
significantly more likely than the total population to use virtually all fragrance forms. Additionally, Asians
and Hispanics express a higher than average interest in trying new fragrance benefits such as anti-aging
and new forms like a scented chewing gum, making the category ripe for product innovation.
Manufacturers should keep in mind that product advertising and outreach efforts to multicultural
consumers should reflect their usage behavior in promotional messaging.
15
Executive Summary
Fragrances
US, September 2012
FIGURE 3: U.S. POPULATION, BY RACE/HISPANIC ORIGIN 2012-17
Economy still struggling, but fragrance category gaining momentum
The economy is still struggling, but there are signs of growth. The fragrance industry is expected to grow
6% in 2012 and disposable personal income (DPI) is slowly improving, which should encourage freer
spending on fragrance. While economic insecurity remains an issue, luxury fragrances and specialty
beauty retailers are at the core of growth in the category. As consumers slowly loosen the reins on
spending, they appear to be trading up to specialty beauty in order to treat themselves. This is particularly
true among younger consumers that like to experiment and specialty beauty offers a wide range of scents,
forms, and prices to meet their needs. Older consumers generally have more disposable income and may
be willing to invest more in luxury items, particularly classic scents from prestige brands like Chanel and
Estée Lauder.
16
Executive Summary
Fragrances
US, September 2012
FIGURE 4: DPI, 2007-MARCH 2012
8%
6%
5%
6%
4%
4%
3%
2%
2%
0%
1%
0%
-2%
-1%
-4%
-2%
-6%
-3%
J-07 M-07 S-07 J-08 M-08 S-08 J-09 M-09 S-09 J-10 M-10 S-10 J-11 M-11 S-11 J-12 M-12
Change from Year Ago
Percent Change from Previous Month
SOURCE: ST. LOUIS FEDERAL RESERVE
Retail channels
Fragrances are available at a wide range of retailers including FDMx channels as well as a variety of other
retailers combining both value and premium outlets. The “other” segment dominates sales of fragrances,
representing an 83% market share in 2012. Such dominance is largely due to the wide range of purchase
locations including high end retailers like specialty beauty and department stores as well as value-driven
retailers like supercenters and warehouse clubs. Drug stores are the top FDMx outlet for fragrance sales,
though they are experiencing the steepest declines among all retail channels as consumers (particularly
women) appear to be trading up to specialty beauty and more premium fragrance offerings.
17
Executive Summary
Fragrances
US, September 2012
FIGURE 5: SALES OF FRAGRANCES, BY CHANNEL, 2012
Supermarkets
4%
Drug
stores
13%
Other
83%
Note: Other retail channels include department stores, cosmetics/beauty supply stores, supercenters, warehouse
clubs, non-store retailers, etc.
SOURCE: MINTEL/BASED ON SYMPHONYIRI GROUP INFOSCAN REVIEWS; U.S. CENSUS BUREAU ECONOMIC CENSUS
Key players
While the fragrance category as a whole is experiencing growth, retail sales of fragrance through FDMx
channels fell by 2.4% for the year ending June 10, 2012. This is consistent with what we are seeing in
retail channels where drug stores and supermarkets are in decline while the “other” segment, likely driven
by specialty beauty, is posting strong gains. Coty Beauty remains the top company in FDMx but continues
to see declines in sales and share. Among leading FDMx brands, Unilever and Procter & Gamble (P&G)
posted the strongest gains with sales bolstered by mass brands like Axe, Old Spice, and Secret.
The consumer
Perfume has the highest use among traditional forms, but usage frequency is low
Traditional fragrance forms include perfume, eau de parfum, eau de toilette, and cologne. Overall, with the
exception of cologne, women are significantly more likely to wear fragrance, and wear it more frequently.
Usage is highest among young consumers, but even with higher reported usage, frequency of use remains
relatively low. Of the traditional forms, perfume has the highest reported daily wear while other forms are
more likely to be used only for special occasions. Increasing usage occasions by introducing functional
benefits such as anti-aging or antibacterial properties could be a big opportunity for the industry.
18
Executive Summary
Fragrances
US, September 2012
FIGURE 6: FRAGRANCE USAGE, TRADITIONAL FORMS— ANY, DAILY, OR OCCASIONALLY WEAR, MAY 2012
“Which of the following best describe how often you wear each of following fragrance types?”
Base: 2,000 internet users aged 18+
SOURCE: MINTEL
Line extension items add benefits, increase usage frequency
Line extensions include products that provide scent in alternate forms and frequently offer an added
benefit like cleansing or moisturizing. Scented soap/shower gel, scented lotion from a mass retailer, and
body spray are the most frequently used line extensions. As interest is considerably higher in these line
extension items, opportunities exist for traditional fragrances to extend into other product categories.
19
Executive Summary
Fragrances
US, September 2012
FIGURE 7: FRAGRANCE USAGE, LINE EXTENSIONS—ANY, DAILY, OR OCCASIONALLY WEAR, MAY 2012
SOURCE: MINTEL
Added benefits garner high consumer interest
The majority of fragrance wearers express interest in fragrances that offer added benefit properties, with
three quarters of respondents claiming some interest in fragrances that are mood boosting or stress
relieving. The opportunity to add benefits to fine fragrance are definitely there based on the high consumer
interest reported for a variety of different properties. Adding benefits not only improve the perceived value
of the product to the consumer, it likely increases usage frequency, making this proposition a win-win for
both consumers and manufacturers.
20
Executive Summary
Fragrances
US, September 2012
FIGURE 8: INTEREST IN PRODUCT INNOVATIONS, PROPERTIES, MAY 2012
“How interested would you be in the following?”
Base: 1,529 internet users aged 18+ who wear fragrance
Appetite-suppressing
20
Antibacterial
30
22
Anti-aging
38
26
Energy boost/pick me up
29
Mood enhancing
32
0%
22
26
37
27
Stress relieving
29
24
42
60%
12
16
44
40%
13
18
44
20%
14
14
80%
Very interested
Somewhat interested
Not very interested
Not at all interested
11
10
100%
SOURCE: MINTEL
Young men are most likely to be interested in innovative product forms
Young men express a higher than average interest in innovative product forms, with 50% of men aged 1834 expressing interest in a fragrance pill, 51% in a chewing gum that emits fragrance, and 44% in a
temporary tattoo that includes fragrance. These product forms provide innovative sampling opportunities
as well as opportunities to leverage popular young men’s fragrances into line extension products.
21
Executive Summary
Fragrances
US, September 2012
FIGURE 9: INTEREST IN PRODUCT INNOVATION FORMS—ANY INTEREST, MAY 2012
Base: 1,529 internet users 18+ who wear fragrance
60
51
50
50
44
%
40
30
29
26
21
20
10
0
A fragrance pill
A chewing gum
All
A temporary tattoo
Male, 18-34
SOURCE: MINTEL
What we think
The fragrance industry is experiencing healthy growth after seeing declines associated with the economic
recession. Growth is being driven by improved consumer confidence, increased product launches, and
strong performance in retail channels outside of FDMx. Despite the highly competitive and saturated
market, positive sales growth is forecast for both the women’s and men’s segments through 2017. In the
women’s segment, celebrity and fashion house fragrances continue to remain popular, though more unique
positioning such as destination-based fragrances are paving the way for increased innovation in the
category. The men’s segment continues to see growth in FDMx driven by popular brands like Axe and
Old Spice, which offer highly scented products at an affordable price.
In addition to strong sales growth, responses to Mintel’s exclusive consumer survey indicate that the time
is ripe for increased product innovation in the fragrance category. Survey results show strong consumer
interest in added product benefits like mood boosting and anti-aging, as well as innovative forms and
extending scent into additional product categories. Healthy category growth combined with increased
product innovation could prove lucrative for the fragrance industry.
22
Issues in the Market
Fragrances
US, September 2012
“Mintel forecasts growth in the fragrance category through 2017, but the industry does face
challenges. Consumers like to experiment in this category making it difficult for brands to sustain
growth and maintain brand loyalty, especially given the high number of product launches each
year. This creates the opportunity to promote added benefits as well as creative sampling to
potentially increase usage occasions and encourage consumers to experiment within a brand.”
– Shannon Romanowski, Beauty & Personal Care Analyst
How can brands sustain long-term growth (or brand loyalty)?
Mintel’s consumer research finds that 48% of consumers like to alternate between a few scents, 28% like
to experiment with scent, and 22% only wear their signature fragrance. Experimentation with different
scents is expected to some degree in this category, particularly among younger respondents.
However, sustaining growth and maintaining brand loyalty presents a big challenge, especially given the
high number of product launches each year, which make it difficult for a fragrance to really stand out.
The fragrance industry is seeing stronger signs of growth after declines during the recession. Celebrity and
fashion house fragrances have contributed to this growth but have also been criticized for simply being a
short-term trend that lacks sustainability. While the concept of having the latest fragrance by the current
“it” celebrity will likely remain appealing to a certain segment of the population in the foreseeable future,
building brand loyalty in a cluttered marketplace remains a challenge.
Promoting added benefits such as anti-aging or mood boosting could help fragrances stand out from the
crowd and potentially increase usage occasions. More than half of fragrance wearers express interest in
fragrances with a variety of added benefits. Also, since consumers like to experiment, offering sample
packs or trial sizes of fragrances allows consumers to try a variety of scents and engage them in the
category. Sephora offers a sample gift set at the holidays that contains samples of around eight to 10
fragrances and includes a gift card that the purchaser can redeem for a full-size bottle of their favorite
fragrance from the set.
Another option is to offer mini sizes and let consumers create their own variety pack allowing them to
sample multiple fragrances. Brands could also offer recommended sets of fragrances to meet different
usage occasion needs, such as a fragrance for daytime wear, one for evening, and one for special
occasions. Helping consumers create a “suite” of fragrances complementing their lifestyle and addressing
their desire to experiment could help brands create a relationship with consumers that could ultimately
lead to stronger brand loyalty.
23
Fragrances
US, September 2012
How will increasing regulation impact the category?
While often unseen to the consumer, industry regulations have greatly impacted the fragrance category
over the past 10-15 years, and will continue to play a large role. Fragrance suppliers bear the brunt of these
regulations, as it’s often specific fragrance ingredients targeted as potential safety concerns or allergens.
The fragrance industry is regulated by two organizations known as the International Fragrance Association
(IFRA) and the Research Institute for Fragrance Materials (RIFM). However, the industry often feels
outside pressure from consumer watchdog groups as well as global regulatory directives (particularly from
the European Union (EU)). Responding to all these regulatory demands, whether forced or self-imposed,
continues to limit the palette of fragrance ingredients used by perfumers, ultimately limiting their
creativity and potential availability of certain scents.
One of the biggest regulatory initiatives to impact the industry took place in 1999 when the European
Scientific Committee identified 26 potential fragrance allergens, resulting in a directive that required
products sold in the EU to list these ingredients individually on the product label, when used above a
certain concentration. Since then, more information has become available regarding fragrance allergens,
thus resulting in the Scientific Committee on Consumer Safety (SCCS) publishing its July 2012
recommendation that the list be updated to include an additional 30 individual chemicals and 26 natural
extracts in addition to the original list of 26 allergens. Based on the SCCS opinion, the European
Commission will consider the appropriate regulatory measures though timing on a final decision is
undetermined (Cosmetics Design-Europe, August 2012).
While this directive is issued out of the EU, these regulations have implications for all global suppliers and
manufacturers. Since most leading fragrance suppliers as well as fragrance brands sell their products
globally, keeping up with global regulatory initiatives is paramount not only to streamline internal
processes but also to ensure consumer confidence in their products. As U.S. companies continue to look
for opportunities to expand their business or brand to other parts of the world (particularly Asia), keeping
abreast of global regulatory directives is a reality of doing business in this global economy. Suppliers and
manufacturers continually walk the line between offering innovative products while meeting the increased
consumer demand for product information, making regulatory issues a major factor in fragrance
development.
What role will technology play in the fragrance category?
Technology certainly plays a key role in the beauty industry, and the fragrance category is no exception.
With the proliferation of beauty websites, beauty blogs, fragrance blogs, and beauty apps, consumers can
research and purchase beauty products and fragrances 24/7. The internet has gone beyond just being a new
way to purchase fragrance; consumers can interact with brands and products by searching for product
descriptions and user reviews.
While consumers are certainly using the internet to make fragrance purchases, fragrances do have a
disadvantage when it comes to online purchasing—purchasers can’t smell the fragrance. While all
products suffer a similar disadvantage since consumers can’t physically interact with the product on a
computer, the key component of a fragrance (its scent) is eliminated when shopping online.
Communicating smell with product descriptions is extremely difficult since most consumers have a very
limited vocabulary when it comes to scent. At the same time, the sense of smell is extremely subjective.
24
Fragrances
US, September 2012
Similarly, sampling at mass retailers can be challenging as often times high-priced items like fragrance are
locked up, making it impossible for consumers to smell or sample. Mass retailers are beginning to address
this “behind the glass” issue by offering in-store sampling opportunities. Duane Reade’s Look Boutique in
New York City has a fragrance tester that allows consumers to sample fragrances by placing their wrist
beneath the nozzle for a spritz of the fragrance they want to test. This type of tester enables shoppers to
smell the fragrance on their skin, which is the preferred method of fragrance wearers to learn about and try
a fragrance. Additionally, according to Mintel’s consumer data, nearly half of fragrance wearers report
visiting a retailer to try a sample of a fragrance, making in-store sampling a great way for mass retailers to
engage consumers (see Trying a New Fragrance).
One way to engage online shoppers looking for fragrance could be to create a fragrance box subscription
that follows in the footsteps of the popular beauty box trend. Beauty box subscriptions are the latest
“trend” in sampling and offer customized boxes of product samples for a small price, allowing consumers
to try before they buy without having to leave their home. Fragrance samples are included in some of the
beauty boxes but are not the primary focus. The opportunity exists to create “fragrance boxes” using a
similar strategy as beauty boxes to allow consumers to experiment with scents for a nominal fee and then
purchase their favorites online.
Using technology to enhance, rather than inhibit purchasing of fragrances will help grow the category and
make it more accessible to consumers who may not always have access to specialty beauty or high end
department stores and rely on mass retailers and the internet to get their fragrance fix. While fragrance
sampling could encourage constant experimenting without consumers ever purchasing a full-size product,
the opportunity to get more samples into more consumers’ hands will ultimately increase brand awareness,
likely resulting in increased sales.
25
Insights and Opportunities
Fragrances
US, September 2012
Opportunity to add efficacy and value with added benefits
Lower-priced items like scented soap, shower gel, and lotion have the highest usage in the category (see
Fragrance Usage). The popularity of these items indicates the desire of consumers to get increased value
along with a relatively low risk proposition for experimenting with a variety of scents.
While the cleansing and moisturizing benefits of shower gels and lotions are obvious, adding benefits to
traditional fragrance forms is an opportunity to grow the fine fragrance category and potentially increase
usage occasions. These benefits could include things like stress relief, suppressing appetite, and even
longer lasting scents that add value to traditional fragrance forms and offer some competition to lowerpriced, line extension items that offer benefits beyond scent.
Linking a fragrance to health and wellness benefits also provides an interesting area of exploration for
innovation. Research being conducted by Dr. Hirsch out of the Smell and Taste Institute in Chicago shows
promise in the area of “relating olfactory mechanisms to influence biological responses.” For example,
some research suggests that green apple can improve migraine symptoms, jasmine can improve reaction
time, and coffee can decrease time perception. While this research is preliminary, it does provide some
scientific validity around the power of scent. Marketing fragrance beyond just “smelling nice” and taking
fragrance to areas like improving athletic performance with jasmine or naturally reducing migraine
symptoms with green apple opens the door for some exciting product innovations.
Adding benefits to fine fragrances can help increase usage of products that are sometimes seen as too
expensive or unnecessary. According to Mintel’s Fragrances—U.S., September 2011, reasons for not
wearing fragrance include lack of interest (41%) and too expensive (27%). Capturing these users with
benefits that are seen as beneficial could be a way to increase penetration and frequency of usage among
current users who only wear fragrances occasionally (see Fragrance Usage).
Beyond luxury
In contrast to the desire for lower-priced, higher value items, there also is a desire for ultra-luxe
fragrances. These high-priced fragrances can be hard to find and often are limited edition. They provide
consumers looking for luxury products the opportunity to own something special and different from the
masses. After sales declines during the recession, the category is once again showing sales growth and
improved consumer confidence. With this improvement consumers are more freely spending and
according to Cosmetics Design and BCC Research “demand for high end perfumes continues to drive the
markets for fragrance ingredients.”
Demonstrating this trend is the high-priced launch of Bond No. 9 Andy Warhol Eau de Parfum. This
fragrance retails for $260 and is only available at the exclusive Bond No. 9 boutiques in New York City as
well as the high end retailer Saks Fifth Avenue.
26
Fragrances
US, September 2012
Bond No. 9 Andy Warhol Eau de Parfum is said to celebrate the “boho-mod” life
and times of the iconic artist. The fragrance features top notes of Italian bergamot
zest, Cypriot india, Provence blue cypress and plum; middle notes of jasmine de
Grasse, sultan agarwood, rose centifolia, white patchouli and cistus; and base notes
of red sandalwood, vanilla bean Madagascar, oriental musk and olibanum tears.
The bottle features the portrait of the artist himself at about age 35, wearing
sunglasses, a trench coat, a white business shirt and a tie. The product is
available in 3.4-fl. oz. ($260) and 1.7-fl. oz. ($180) packs.
SOURCE: MINTEL GNPD
Natural and sustainable
Growing consumer interest in natural and ethical qualities of products is quickly becoming the norm
across many consumer categories and fragrance is no exception. This goes beyond simply adding naturalsounding ingredients to using ingredients that are naturally sourced and are sustained in an ethical way.
This means preserving the environment where the ingredient is sourced, replanting for the future, and
supporting the local populations who cultivate and harvest these ingredients. The fragrance industry has
suffered some bad press in recent years regarding the sourcing of some ingredients like sandalwood. In
response, many fragrance houses are creating a sustainability program with promises to ethically source
ingredients like vanilla, sandalwood, and other “exotic” ingredients that are only available in certain
regions of the world.
Ingredient testing is another “hot button” issue among consumers with animal testing being a particularly
contentious topic. Responding to this issue, Symrise has become the first fragrance supplier to partner with
EPAA (European Partnership for Alternative Approaches to Animal Testing) to promote alternative
testing methods (Cosmetics Design, July 11, 2012). It is likely that other ingredient and fragrance
suppliers will jump on board, proactively supporting alternative testing, ingredient replacements, and other
regulatory issues to demonstrate their commitment to natural and ethical practices.
Multicultural consumers, Millennials hold greatest opportunity
According to Mintel’s Marketing to a Green Consumer—U.S., April 2012, Asians and Hispanics have a
greater tendency than the average to purchase green products. At the same time, the Asian and Hispanic
populations also over index in fragrance usage (see Race and Hispanic Origin). These tendencies,
combined with projected population growth, should benefit the market for green fragrances.
Another prime target for natural fragrances is Millennials. Also noted in Mintel’s Marketing to a Green
Consumer—U.S., April 2012, Millennials are by far the most committed to buying green when compared
to other generational groups. This group is also the most active in the fragrance category, particularly with
lower-priced items like body sprays and shower gels. Targeting this group with natural claims could be
beneficial. Manufacturers need to be careful to avoid “greenwashing” as consumer skepticism regarding
natural claims is problematic, particularly in the personal care category where there is no standard
definition for “natural,” creating confusion not only for companies, but ultimately for consumers. Some
companies like Burt’s Bees are pushing for industry standards and guidelines regarding natural and
sustainable claims. This type of proactive commitment to creating industry standards not only makes it
easier for consumers to understand what ingredients are going into the products they use, but also helps
garner consumer trust and confidence in the industry.
27
Fragrances
US, September 2012
Creating 100% natural fragrances certainly limits the ingredient palette for perfumers as well as increases
cost. However, for those consumers seeking green, they may be willing to make the trade-off in scent for
the natural qualities they seek. The key for manufacturers is to communicate what ingredients are used,
where they are sourced, and the company’s commitment to being more eco-friendly.
A sensory journey
Creating a total concept will be critical in capturing consumers’ attention, particularly in this highly
saturated category. For example, a fragrance that is spicy and sexy but is packaged in an earthy looking
green bottle wouldn’t make a lot of sense. If a fragrance smells spicy, it should look and feel spicy too.
The concept, packaging, and fragrance will need to work together to create a cohesive product that appeals
to all the senses. Engaging the senses beyond smell like offering a tactile package, a visual cue to the type
of fragrance in the bottle, and maybe even some sort of sound (like music) will start engaging consumers
long before they actually smell the fragrance. Fine fragrances already showcase artistic packaging, but
taking it to the next level by offering a package that supports a concept, helps differentiate the product on
the shelf, and promises to deliver a fantastic fragrance will enhance the consumer experience and
hopefully create brand loyalty.
For line extensions, a fragrance needs to support the benefits and ingredients. Fragrances have the power
to elevate the perception of increased functionality when used properly. A moisturizer needs to deliver on
the consumer’s expectation of moisturization and the right fragrance can help the product deliver on the
intended function. For example, citrus or fruity fragrances communicate freshness, which works well for
cleansing products like shampoo and body wash, while comforting scents like vanilla or soft florals
communicate skincare benefits like moisture or repair. This idea will be increasingly important as
fragrances go beyond just scent and provide added benefits like anti-aging, stress relief, and even appetite
suppression.
28
Trend Applications
Fragrances
US, September 2012
Trend Applications
Mintel’s approach in this section goes beyond merely identifying trends. Trends from Mintel Inspire are
applied to understand the wider implications of cultural changes, gaining insight into how companies and
brands can translate these into on-the-ground opportunities relevant for the fragrance market.
Trend: Mood to Order
Today, research into the mood-manipulating qualities of certain ingredients, scents, sounds, and even
lighting levels is getting deeply scientific—and widely adopted. The beauty industry is reaching beyond
aromatherapy into the realms of psychology and neurology, while schools and adolescent psychologists
alike are exploring ways to improve youths’ dispositions via scented classrooms and “brain food”-heavy
diets.
Here is how the trend Mood to Order can be used in the fragrance market.
While the concept of aromatherapy is not new to the fragrance industry, (think calming lavender soap or
energizing citrus body wash), elevating scent to a multisensory experience is likely going to be the next
generation in fragrance. As illustrated in the Insights and Opportunities section, engaging consumers
beyond just a nice smelling fragrance and offering them a full product concept is an exciting way to attract
consumers before they even smell the fragrance. Adding to the appeal of multisensory products is the
concept of mood enhancement. This idea has gained popularity in the beverage industry, with the
suggestion that ingesting certain ingredients can impact one’s mood. In fact, ThinQ just launched a
lifestyle drink in March 2012 that claims to contain “an all-natural mood enhancer from substances
naturally found in the body.” The Republic of Tea has an entire line based on wellness with variants such
as Get Happy and Get Relaxed, which contain different herbal blends to support the highlighted mood or
benefit. This concept seems to be resonating with consumers as more products are being launched
revolving around the idea of wellness and mood enhancement. Consumer interest is clearly there and
expands beyond beverage to the beauty and personal care industry.

Mintel’s exclusive consumer research finds that 76% of fragrance wearers are interested in fragrances
that are mood boosting, 74% are interested in stress-relieving properties, and 69% are interested in an
energy boost.
The idea of getting more than just physical benefits from fragrances and expanding into emotional and
even psychological benefits is definitely appealing to consumers and offers opportunities for brands to
connect with them in an innovative and powerful way.
29
Trend Applications
Fragrances
US, September 2012
ThinQ Lifestyle Drink is described as an all natural, multi-function, stress-relieving
drink that promotes wellness for health conscious people with a busy, on-the-go
style. According to the manufacturer, this is the first beverage on the market that
includes SAMe, an all natural mood enhancer from substances naturally found in
the body, along with 13 herbs, adaptogens, antioxidants, vitamins, electrolytes and
essential minerals.The product does not contain anything artificial, retails in a 12-fl.
oz. can and is available in two flavors: Sparkling Citricity; and Sparkling Mixed
Berry.
The Republic of Tea Be Well Red Teas have a Get Wellness variety that is a
caffeine-free herbal blend with organic rooibos, echinacea and astragalus, along
with ashwagandha, which is said to increase health and longevity. Also available as
varieties are: Get Maternal; Get Passionate; Get Heart for cardiovascular health;
Get Happy; Get Relaxed; Get Growing; and Get Smart. This product is kosher
certified and gluten free.
SOURCE: MINTEL GNPD
Trend: Extend My Brand
While price has invariably played an enormous role in consumer decision-making, so too has another
critical factor: trust. It’s the tried and true brands which have the advantage in that regard.
As such, established brands have begun to leverage that trust in new ways; namely, by extending it into
new categories.
Here is how the trend Extend My Brand can be used in the fragrance market.
Trusted fragrance brands like Chanel and Estée Lauder have the advantage of being well-known and
trusted in the industry but may have difficulty generating the excitement that new launches from
celebrities and fashion houses can sometimes generate. However, in a market where consumer skepticism
is high and trust is low, brands have the opportunity to leverage that trust by extending their brand into
other categories and even identifying co-branding opportunities.

Mintel’s exclusive consumer research finds that 65% of fragrance wearers are interested in scented
candles that smell the same as their favorite fragrance, 62% are interested in air fresheners, and 60%
in dryer sheets.
Extending fragrances in other product categories isn’t entirely new, particularly with candles, but creating
a partnership with trusted candle brands, like Yankee Candle or Glade, could be a way to capture
consumer interest and leverage their trust across product categories. Additionally, as illustrated in the
Competitive Context section, offering fragrance pods containing top-selling fine fragrances that could be
added to laundry detergent would be an interesting way to offer an innovative laundry product and extend
fine fragrances into the household market. This offers consumers the opportunity to get a whiff of their
favorite scent when they want it and an opportunity for fragrances to extend their brand.
30
Trend Applications
Fragrances
US, September 2012
2015 Trend: Brand Intervention
Mintel has identified four meta trends that are gaining significance and will have the greatest impact on
consumers worldwide between now and 2015. Because these trends are affecting both domestic and
international markets and industry sectors, they also present the greatest areas of opportunity for
companies and brands. The four trends are as follows:

Old Gold

East Meets West

Access Anything Anywhere

Brand Intervention
As with Mintel Inspire trends, any one the four 2015 trends can be applied to identify opportunities for
companies operating within the fragrance industry. For the purposes of this report, Mintel explores
how Brand Intervention can be used in the fragrance market.
Consumers expect companies to govern on their behalf. This means that those proactive, progressive
brands that seek to stay ahead of the ‘state stick’ by doing their bit won’t just avoid penalties; they will
win favor with governments and consumers alike.
Here is how the trend Brand Intervention can be used in the fragrance market.
As outlined in the Issues in the Market section, industry regulations have impacted the fragrance industry,
particularly over the past decade, and will continue to be a factor facing the future of the industry.
Increased regulation combined with heightened consumer awareness of the safety and sourcing of
ingredients often puts the industry under scrutiny. Getting ahead of regulations isn’t always easy (or
possible) but proactively addressing concern regarding the safety and sustainability of ingredients will
help build consumer trust and improve the perception of the industry as a whole.
The fragrance industry uses thousands of ingredients to create scents and some of those ingredients are
only available in remote parts of the world or from rare or limited sources. Concern about ingredient
sustainability as well as sourcing practices have plagued the industry in the past. Fragrance suppliers, as
well as manufacturers, are beginning to take this to heart and be more up front about how and where
ingredients are sourced. The Body Shop has embraced this concept by using fair trade ingredients when
possible and also sharing sourcing practices. Transparency about where ingredients are sourced as well as
highlighting potential allergens help to build consumer confidence in the brand and industry as a whole.
Since ingredient labels are already very small as more information is trying to be added, including a QR
code that takes consumers directly to the product website with a clear list of ingredients, potential
allergens, and detailed information about the product could be a helpful tool to engage consumers and
address safety and ingredient concerns.
31
Trend Applications
Fragrances
US, September 2012
The Body Shop Coconut Body Mist is said to offer a tropical coconut scent. The
product is made with Community Trade organic alcohol from sugar cane grown in
Ecuador, without the use of synthetic chemicals or pesticides. It is grown using
traditional methods to help preserve the natural beauty and wildlife of the Cotopaxi
province. It also contains coconut extract, has not been tested on animals and
retails in a 3.3-fl. oz. pack featuring a QR code.
SOURCE: MINTEL GNPD
32
Market Size and Forecast
Fragrances
US, September 2012
Key points

After sales declines of 12% from 2007-09, the U.S. fragrance market began to show signs of
recovery with modest sales growth in 2010 and stronger growth in 2011 and 2012 (est.)

The category is expected to reach $3.5 billion by the end of 2012, with positive growth predicted
in the category through 2017. Industry growth is strong with fragrance suppliers and
manufacturers reporting solid increases in sales. Growth appears to be driven by a number of
factors including an increased number of new product launches, along with increased demand
for high end perfumes, eco-friendly scents, and customized scents.
Sales continue to recover after sharp declines during recession
The fragrance industry took a big hit during the recession, experiencing nearly a 12% decline through
2009. However, with improving economic stability along with increased product launches and promotions,
the category is experiencing an improved outlook. Due to estimated growth of 6% in 2012, the industry is
expected to reach more than $3.5 billion in sales by the end of the year.
Category expected to see sales growth through 2017
Growth in the category is a bit more optimistic than seen just one year ago. Based on sales trends seen
over the past five years, Mintel’s Fragrances—U.S., September 2011 predicted sales to once again decline
in 2012. However, 2012 has been a strong year for the industry with growth driven by sales in specialty
beauty retailers along with an increased number of product launches (see Innovations and Innovators),
thus resulting in a strong 2012 estimate. Major fragrance suppliers are reporting healthy sales growth,
which indicates increased retailer and consumer interest in the category, likely resulting in steady sales
growth over the next five years.
Sales and forecast of fragrances
FIGURE 10: TOTAL U.S. RETAIL SALES AND FORECAST OF FRAGRANCES, AT CURRENT PRICES, 2007-17
2007
2008
2009
2010
2011
2012 (est.)
2013 (fore.)
2014 (fore.)
2015 (fore.)
2016 (fore.)
2017 (fore.)
$million
% change
Index (2007 = 100)
Index (2012 = 100)
3,377
3,100
2,981
3,066
3,311
3,510
3,657
3,869
4,080
4,295
4,482
-8.2
-3.8
2.9
8.0
6.0
4.2
5.8
5.5
5.3
4.4
100
92
88
91
98
104
108
115
121
127
133
96
88
85
87
94
100
104
110
116
122
128
33
Fragrances
US, September 2012
Sales of fragrances at inflation-adjusted prices reflect an increase of 4.2% in estimated 2012, though the
category is still recovering from declines in 2008, and down 6% for the period 2007-12 (est.), the category
is expected to see continued growth through 2017.
FIGURE 11: TOTAL U.S. RETAIL SALES AND FORECAST OF FRAGRANCES, AT INFLATION-ADJUSTED PRICES, 2007-17
2007
2008
2009
2010
2011
2012 (est.)
2013 (fore.)
2014 (fore.)
2015 (fore.)
2016 (fore.)
2017 (fore.)
$million
% change
Index (2006 = 100)
Index (2011 = 100)
3,728
3,296
3,180
3,218
3,369
3,510
3,604
3,758
3,895
4,019
4,104
na
-11.6
-3.5
1.2
4.7
4.2
2.7
4.3
3.7
3.2
2.1
100
88
85
86
90
94
97
101
104
108
110
106
94
91
92
96
100
103
107
111
115
117
Fan chart forecast
Mintel has produced this forecast using advanced statistical techniques including stepwise, multivariate
regression, and the autoregressive procedure using the statistical software package SPSS.
The model is based on historical market size data taken from Mintel’s own market size database and
supplemented by published macroeconomic and demographic data from various private and public sources
including the Federal Reserve Board, the U.S. Commerce Department, the Census Bureau, the Council of
Economic Advisers, and the Congressional Budget Office. The model searches for relationships between
actual market sizes and a selection of relevant and significant macroeconomic and demographic
determinants (independent variables) to identify those predictors having the most influence on the market.
For the forecast of fragrances the following predictor variable(s) were used in the forecast: consumer
expenditure, gross domestic product per capita, and disposable personal income per capita.
Next to historical market sizes and a current year estimate, the fan chart illustrates the probability of
various outcomes for the market value of fragrances over the next five years. The future uncertainty within
this market is illustrated by the colored bands around the five-year forecast. The widening bands
successively show the developments that occur within 95%, 90%, 70%, and 50% probability intervals.
Statistical processes predict the central forecast to fall within the darker shaded area, which illustrates 50%
probability (i.e., a five in 10 chance).
At a 95% confidence interval, Mintel is saying that 95 out of 100 times, the forecast will fall within these
outer limits, which Mintel calls the best- and worst-case forecasts, as these, based on the statistically
driven forecast, are the highest (best case) and lowest (worst case) market sizes the market is expected to
achieve.
34
Fragrances
US, September 2012
The best and worst case forecasts take the value of fragrances from an estimated $3.5 billion in 2012, to
$5.7 billion (best case) and $3.2 billion (worst case) in 2017. Based on the forecast derived above,
however, Mintel expects the market to grow to a total of $4.5 billion in 2017.
FIGURE 12: TOTAL U.S. SALES AND FAN CHART FORECAST OF FRAGRANCES, AT CURRENT PRICES, 2007-17
7,000
Total Sales($ millions)
6,000
Best case (million)
$5,748
5,000
Mintel forecast
(million) 4,482
(million)
3,510
4,000
Worst case (million)
$3,216
3,000
2,000
Confidence intervals
1,000
00
2007
95%
90%
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Est.
Actual
Forecast
70%
50%
Walmart sales
Considering Food, Drug, and Mass Merchandiser sales including Walmart (FDMW) as measured by IRI
InfoScan® and MarketInsightTM for Walmart (i.e., not the total market as shown above), Walmart
accounted for 38% of sales of FDMW for the 52 weeks ending June 10, 2012. This share was 41.3% for
the 52 weeks ending June 12, 2011.
Mintel defines this market by combining, in full or in part, the following IRI segments:

Perfumes and colognes/body powder

Women’s gift packs

Men’s gift packs/sets

Shaving lotion/cologne/talc.
For more information about sales attributed to Walmart, or SymphonyIRI’s MarketInsightTM for Walmart
product, please visit www.symphonyiri.com or email [email protected].
35
Market Drivers
Fragrances
US, September 2012
Market Drivers
Key points

Fragrance use is largely driven by age, representing challenges for the fragrance industry as
participation in the category decreases with age. Due to anticipated population growth of 16.5%
among 55-64 year olds and 21.3% among 65-74 year olds over the next five years, the fragrance
industry will need to keep age trends in mind to ensure their products are reflecting the needs of
this shifting consumer base.

Growth among the Hispanic and Asian populations is expected to outpace the growth of the
overall population over the next five years. This is great news for the fragrance industry as these
ethnic groups over index usage in the majority of fragrance categories.

While economic recovery has been slow, indicated by continued high unemployment and low
consumer confidence, the fragrance industry is showing signs of rebounding. The slow recovery
may be driving some consumers to keep a tighter rein on spending due to the high usage of
lower-priced line extensions. However, specialty beauty and other higher end retailers are
actually showing the greatest signs of growth.
Aging population creates challenges for the fragrance industry
As the aging population is expected to swell over the next five years, challenges to keep this consumer
engaged in the category will continue to rise. As illustrated in the Fragrance Usage section of this report,
use of virtually all fragrance categories decreases with age. However, categories like scented body powder
and aftershave are the exception and show consistent usage across all age groups. Some 32% of women
55+ use scented body powder, compared to 30% of the total population, and 55% of men 55+ use
aftershave, compared to 56% of all men.
While the aging population does represent challenges to the industry, it also creates opportunities. With
45% of women aged 35-54 and 38% of men aged 35-54 reporting that they feel more confident when
wearing a fragrance (see Attitudes toward Wearing Fragrance), building on that confidence could lead to
stronger brand loyalty and increased use as these consumers age. Emphasizing confidence could be a key
brand attribute as consumers are staying in the work force longer and often competing with their younger
counterparts. Associating fragrance with confidence is one way brands could connect with these older
consumers.
While scented body powder and aftershave may be tied to tradition and considered a regular part of a
grooming routine, manufacturers could encourage increased use by offering these products in classic
scents or signature scents, which are more likely to be preferred by older consumers (see Attitudes toward
Wearing Fragrance). Additionally, adding benefits like anti-aging or mood boosting to these forms, as
well as other fragrance forms, could be a way to further engage older consumers and help meet their
changing needs. As indicated in the Interest in Product Innovation section, 69% of women and 63% of
men aged 35-54 are interested in fragrances with anti-aging benefits. These numbers fall slightly for
consumers aged 55+ but still represent the majority with 60% of women and 54% of men expressing
interest in this innovation.
36
Market Drivers
Fragrances
US, September 2012
Combining consumer relevant benefits with appealing product forms could be an opportunity for the
fragrance industry to curb some of the usage declines often seen with age in this multibillion-dollar
industry.
FIGURE 13: U.S. POPULATION, BY AGE, 2007-17
2007
000
%
2012
000
%
2017
000
%
2012-17
% change
<5
5-14
15-24
25-34
35-44
45-54
55-64
65-74
75+
20,603
40,250
42,694
40,877
43,298
43,932
32,737
19,349
18,485
6.8
13.3
14.1
13.5
14.3
14.5
10.8
6.4
6.1
21,490
42,009
43,757
43,009
41,025
44,269
38,147
23,465
19,095
6.8
13.3
13.8
13.6
13.0
14.0
12.1
7.4
6.0
22,413
44,106
43,628
45,250
41,928
42,805
41,921
29,088
20,692
6.8
13.3
13.1
13.6
12.6
12.9
12.6
8.8
6.2
4.3
4.4
2.5
5.2
-5.2
0.8
16.5
21.3
3.3
Total
302,226
100.0
316,266
100.0
331,833
100.0
4.6
Age
Note: Data may not equal totals due to rounding
Hispanic and Asian populations are growing and engaged in the category
The face of the American consumer is changing beyond just shifting age demographics. The Asian and
Hispanic populations are predicted to experience 14.2% and 15.6% growth, respectively, over the next
five years compared to the 4.9% total population growth. This is good news for the fragrance industry as
these ethnic groups are significantly more likely than the total population to report using virtually all
fragrance forms (see Race and Hispanic Origin). Additionally, Asians and Hispanics report a higher than
average interest in trying new fragrance benefits such as anti-aging and new forms like a scented chewing
gum (see Race and Hispanic Origin).
While it’s no secret that reaching these consumers is critical, advertising product benefits that resonate
with them is just as important. According to Mintel’s Marketing to Multicultural Young Adults—U.S., May
2012 report, Asians and Hispanics aged 18-24 are more likely than total respondents to find celebrity
spokespeople compelling, suggesting that these may be groups for whom the right celebrity spokespeople
can be more effective. Given the continued popularity of celebrity fragrances, targeting messages to this
younger, ethnic consumer could be particularly effective.
37
Market Drivers
Fragrances
US, September 2012
FIGURE 14: U.S. POPULATION, BY RACE/HISPANIC ORIGIN 2007-17
2007
000
%
2012
000
%
2017
000
%
2012-17
% change
Race
Asian
Black
White
Other*
13,561
38,771
241,547
8,347
4. 5
12. 8
79. 9
2. 8
15,246
40,790
250,449
9,781
4. 8
12. 9
79. 2
3. 1
17,405
43,040
260,273
11,116
5. 2
13. 0
78. 4
3. 3
14.2
5.5
3.9
13.6
Hispanic origin
Hispanic
Non-Hispanic
45,787
256,439
15. 1
84. 9
52,843
263,422
16. 7
83. 3
61,088
270,746
18. 4
81. 6
15.6
2.8
Total
302,226
100. 0
316,266
100. 0
331,833
100. 0
4.9
* includes American Indian/Alaska native, native Hawaiian/other Pacific Islander, and two or more races
Numbers may not equal totals because of rounding.
Economic recovery slow but fragrance category growing
Consumer confidence is still low when compared to 2006, but it is on the rise. Also, while unemployment
numbers remain high, consumer spending is increasing and the fragrance category is once again seeing
growth after experiencing declines during the recession. Although economic insecurity remains a big
issue, luxury fragrances and specialty beauty retailers are at the core of growth in the category.
FIGURE 15: THOMSON REUTERS/UNIVERSITY OF MICHIGAN’S INDEX OF CONSUMER SENTIMENT, 2006-Q2 2012
2006
2007
2008
2009
2010
2011
2012
March
June
September
December
Average of these 4 months
88.9
92.2
69.5
57.3
73.6
67.5
76.2
83.8
86.9
56.4
70.8
76.0
71.5
73.2
84.0
83.4
70.3
73.5
68.2
59.4
-
92.5
75.5
60.1
72.5
74.5
69.9
-
92.5
84.5
64.0
68.5
73.1
67.1
-
Note: The index offers a gauge of consumer confidence for the upcoming six months based on a survey of 500
households
SOURCE: MINTEL/THOMSON REUTERS/UNIVERSITY OF MICHIGAN SURVEY OF CONSUMERS
An interesting dichotomy is taking place in the category—lower-priced, value added items such as shower
gels and scented body lotions have the highest penetration and new product trends indicate continued
popularity of these forms. However, high-priced perfumes and the success of the “other” retailer segment,
likely driven by specialty beauty retailers, appear to be driving growth in the category (see Retail
Channels).
38
Market Drivers
Fragrances
US, September 2012
While difficult to assess what is driving this phenomenon, disposable income is generally higher among
older consumers who may be willing to spend for luxury or signature scents in traditional forms like eau
de parfum (EDP) or cologne (which are often more expensive). Younger consumers are more likely to
experiment with a variety of scents (see Attitudes toward Fragrance), and generally have less disposable
income. Specialty beauty retailers like Bath & Body Works offer a variety of scented products in lowerpriced forms like scented lotions, appealing to the core consumer of young women. These consumers may
be swapping drug store purchases with specialty retailers due to the availability of lower-priced forms
along with the expansive choice of scents simply not available in traditional FDMx retailers.
FIGURE 16: DPI, 2007-MARCH 2012
8%
6%
5%
6%
4%
4%
3%
2%
2%
0%
1%
0%
-2%
-1%
-4%
-2%
-6%
-3%
J-07 M-07 S-07 J-08 M-08 S-08 J-09 M-09 S-09 J-10 M-10 S-10 J-11 M-11 S-11 J-12 M-12
Change from Year Ago
Percent Change from Previous Month
SOURCE: ST. LOUIS FEDERAL RESERVE
Bath and shower products contribute to category growth
While bath and shower products are not included in the fragrance market size, these products clearly
contribute to category sales as they are often purchased based on the type of fragrance they provide.
According to Mintel’s Soap, Bath, and Shower Products—U.S., April 2012, demand for special product
attributes, including extra moisturization, fragrance, and antibacterial properties, has helped grow sales in
2012. Additionally, the availability of products with complimenting scents like a matching shower gel,
lotion, and body spray could be driving growth. Increased demand among men for soap and shower
products that specifically cater to them and differ from women’s products—such as Axe and Old Spice
body wash brands—is also fueling sales.
39
Market Drivers
Fragrances
US, September 2012
FIGURE 17: TOTAL U.S. RETAIL SALES AND FORECAST OF SOAP, BATH, AND SHOWER PRODUCTS, AT CURRENT PRICES, 2006-16
2006
2007
2008
2009
2010
2011 (est.)
2012 (fore.)
2013 (fore.)
2014 (fore.)
2015 (fore.)
2016 (fore.)
$million
% change
Index (2006 = 100)
Index (2011 = 100)
3,799
3,932
4,254
4,393
4,326
4,416
4,525
4,617
4,707
4,796
4,892
3.5
8.2
3.3
-1.5
2.1
2.5
2.0
1.9
1.9
2.0
100
103
112
116
114
116
119
122
124
126
129
86
89
96
99
98
100
102
105
107
109
111
SOURCE: MINTEL/BASED ON SYMPHONYIRI GROUP INFOSCAN® REVIEWS; U.S. CENSUS BUREAU, ECONOMIC CENSUS
Within soap, bath, and shower products, liquid body wash represents the largest segment in the market,
with sales of $1.9 billion in estimated 2011, a slight increase over 2010 sales. In fact, liquid body wash has
grown each year between 2006 and 2011, with the exception of 2010, which reflected a fractional slip of
0.5%. The conveniences of body wash, as well as the marketing blitzes that have accompanied best-selling
brands such as Axe and Old Spice (focusing on men), have resulted in substantial overall growth for the
segment, likely to the detriment of other segments such as deodorant bar soap. The wide range of scents
available in body wash also makes it more appealing, allowing consumers the opportunity to experience
fragrance while getting clean. However, just launching a new fragrance variant is no longer enough to
generate sales growth, as the category is saturated with choice. Adding functional benefits like
moisturizing and deodorizing properties appear to be the next generation of body wash. Also, while
traditionally fine fragrances get extended into lower cost, body care items, manufacturers may want to try
the opposite approach and extend popular body wash fragrances into body sprays or even fine fragrances.
As consumers may be shopping for these body care products anyway, giving them the opportunity to layer
scent could be an opportunity.
FIGURE 18: TOTAL U.S. RETAIL SALES AND FORECAST OF LIQUID BODY WASH, AT CURRENT PRICES, 2006-16
2006
2007
2008
2009
2010
2011 (est.)
2012 (fore.)
2013 (fore.)
2014 (fore.)
2015 (fore.)
2016 (fore.)
$million
% change
Index (2006 = 100)
Index (2011 = 100)
1,391
1,542
1,801
1,886
1,877
1,914
1,994
2,064
2,125
2,181
2,251
10.8
16.8
4.7
-0.5
2.0
4.1
3.5
3.0
2.6
3.2
100
111
129
136
135
138
143
148
153
157
162
73
81
94
99
98
100
104
108
111
114
118
SOURCE: MINTEL/BASED ON SYMPHONYIRI GROUP INFOSCAN® REVIEWS; U.S. CENSUS BUREAU, ECONOMIC CENSUS
40
Competitive Context
Fragrances
US, September 2012
Competitive Context
Body care products add fragrance and skincare benefits
Liquid shower gels remain a big opportunity as the category continues to experience growth and is the
largest segment in the soap, bath, and shower product category (see Mintel’s Soap, Bath, and Shower
Products—U.S., April 2012). According to that report, more than a third chose soap/bath products mainly
by scent.
As discussed throughout this report, usage of line extension items like shower gel and scented body lotions
have higher penetration and usage frequency when compared to more traditional fragrance forms (see
Product Usage). This is likely driven by their lower-price point combined with the added skin benefits of
cleansing or moisturization. These product forms are appealing to consumers who want to experiment with
scent without investing in more expensive forms. They also appeal to those who want a lighter scent than
traditionally offered in EDPs and cologne.
Although it’s hard to quantify the exact impact of scented body care products on the fine fragrance market,
the popularity of scented body items is undeniable. Undoubtedly, as economic struggles continue for many
consumers, getting scent from lower-priced body care items is certainly appealing. As further illustrated
by Mintel’s Soap, Bath, and Shower Products—U.S., April 2012, 72% of soap/body wash users claim
scent is important with that number jumping to 82% of 18-24 year olds. While that number drops for
lotion users, with only 28% claiming scent as important, scent is still clearly a driver for more than a
quarter of users. Some consumers are “scent seekers” and look for fragranced products across a variety of
forms and categories, giving them the opportunity to “layer” scent. At the same time, some consumers
may be trading down to these lower-priced body care items in order to get scent and skincare benefits
without the hefty price tag often associated with fine fragrance. With high levels of consumer interest
being expressed in both added product benefits as well as line extensions, the fragrance industry has an
opportunity to extend its brands across categories while adding increased functionality, and ultimately
improving value perception (see Interest in Product Innovations).
Opportunity for the fragrance market:
While many fine fragrances do offer flanker items like body lotions or shower gels, they generally don’t
receive the promotion received by the star fragrance. Additionally, these formulas don’t always offer the
functionality seen in mass products. Fine fragrances could potentially co-brand with popular mass brands
to leverage their fragrance in successful skincare products by offering consumers the functional benefits of
these products combined with their favorite premium scent. This likely isn’t a strategy appropriate for
ultra-luxe fragrances as associating with mass retail products could potentially dilute the cachet or
exclusivity of a brand. However, with many brands being available in both FDMx and at specialty
retailers’, partnering with mass personal care brands is a relatively easy jump, particularly since many
manufacturers, such as Unilever, own a variety of mass personal care brands and fine fragrance brands.
41
Competitive Context
Fragrances
US, September 2012
Consumers seeking scent through laundry
Scent seekers are finding fragrance options extending into categories typically seen as functional and less
experiential. Laundry detergents, fabric softeners, and even dish soaps are offering a variety of fragrance
options. Laundry brand Gain has embraced this concept by offering fragrance varieties like Sunflower &
Sunshine, Butterfly Kiss, and Apple Mango Tango and packaging them in bright bottles to clearly
emphasize the fragrance aspect of the products.
Gain Sunflower & Sunshine Scented Laundry Detergent with Febreze
Freshness features FreshLock technology, which is said to provide fantastic
freshness even after two weeks. Suitable for regular and high-efficiency machines,
the phosphate-free product retails in a 100-fl. oz. pack, sufficient for 48 loads. The
packaging is made from 25% or more post-consumer recycled plastic.
SOURCE: MINTEL GNPD
Scent is definitely a factor when consumers are selecting laundry detergent as indicated in Mintel’s Home
Laundry Products—U.S., June 2011, with 66% of respondents claiming scent is important, and that
number is even higher with respondents younger than 35. However, due to the maturity of the laundry
market combined with the increasing popularity of private label and low-price brands, just offering a new
fragrance option often cannibalizes existing business without providing new sales growth or innovation.
Again, some consumers are “scent seekers” and will look for scent in any product, giving them the
opportunity to experiment with a variety of scents across many categories. However, as fine fragrance is
not usually considered a “necessity” as opposed to household and laundry items, consumers may be
satisfied with getting scent from items that they need to purchase anyway. The added value of scent in
functional products may help cash-strapped consumers get the fragrance experience they enjoy without
spending more, ultimately resulting in decreased usage or purchase occasions of higher-priced fragrance
items.
As suggested in the Interest in Product Innovation section of this report, there is definite consumer interest
in dryer sheets and laundry detergents that smell the same as a consumer’s favorite fragrance. While not
knowing what consumers consider to be their “favorite fragrance” (it could mean favorite perfume or just
favorite smell like vanilla), opportunities exist to create a more upscale, experiential fragrance experience
for consumers. Perhaps offering fragrance pods containing top selling fine fragrances that consumers
could add to their laundry detergent would be an interesting way to offer an innovative laundry product
and extend fine fragrances into the household market. This offers consumers the opportunity to add
fragrance “just when they want it” as well as creates strong co-branding opportunities for both fragrance
and laundry brands.
42
Competitive Context
Fragrances
US, September 2012
FIGURE 19: INTEREST IN PRODUCT INNOVATIONS—SCENT EXTENSIONS—ANY INTERESTED, MAY 2012
Base: internet users aged 18+ who wear fragrances
Scent extensions:
Dryer sheets that smell the same as my favorite fragrance
Laundry detergents that smell the same as my favorite fragrance
All
1,529
%
60
58
SOURCE: MINTEL
Experiencing fragrance without wearing it
Going beyond adding fragrance to your body and clothes, consumers want their environments to smell
good as well. According to Mintel’s Candles—U.S., August 2012, 73% of consumers use candles for
burning, and the majority of them burn scented candles with only 7% preferring unscented candles. While
the candle industry is experiencing declines, luxury candles that are only available at high end retailers,
like the one launched by fashion designer Jason Wu, are generating buzz.
As mentioned previously, it’s difficult to quantify the impact that candles and air fresheners have on fine
fragrances, but the popularity of these items is certainly strong. These products offer consumers a lower
cost way to experience scent while adding a décor element to their homes. The perceived added benefit of
scent and home décor may be leading some consumers to trade out their fine fragrance for a candle or air
freshener. On the flip side, household fragrance items allow consumers who typically don’t wear fragrance
due to skin sensitivities to experience their favorite fragrance without having direct contact with the
product.
Opportunities to co-brand popular fine fragrances with candles and air fresheners could generate consumer
excitement. As seen in the Interest in Product Innovations section, 65% of consumers express interest in
scented candles and 62% express interest in air fresheners both containing their favorite fragrance.
Leveraging popular fine fragrances in air freshening products could appeal to consumers who want to
experience their favorite fragrance in a variety of ways as well as consumers that like fragrance but don’t
want to apply it directly to their skin due it skin sensitivities or allergies sometimes associated with
fragrance. Co-branding with popular candle and air freshener brands in both mass and prestige, like Glade
or Yankee Candles, is a great way to extend fragrances into products that are already associated with high
quality.
43
Competitive Context
Fragrances
US, September 2012
FIGURE 20: INTEREST IN PRODUCT INNOVATIONS—SCENT EXTENSIONS—ANY INTERESTED, MAY 2012
Scent extensions:
Scented candles that smell the same as my favorite fragrance
Air fresheners that smell the same as my favorite fragrance
All
1,529
%
65
62
SOURCE: MINTEL
44
Segment Performance
Fragrances
US, September 2012
Segment Performance
Key points

Both the women’s and men’s segments have experienced sales growth since 2010, primarily
driven by specialty beauty and “other” retailers outside of FDMx.

The women’s segment holds the majority of the market share at 64.2% and is gaining share
while the men’s segment is showing a small decline in overall market share. However, the men’s
segment is seeing stronger performance at the FDMx level due to the continued growth and
popularity of “male-specific” personal care products.
Women’s and men’s segments showing healthy growth
Mintel expects that the women’s fragrance segment will reach a 64.2% share of the fragrance category by
the end of 2012, which is a slight gain in share from 2010. Meanwhile, while the men’s segment is
showing sales growth, it is expected to lose market share to women’s fragrances from 2010-12. The
category as a whole is on an upswing, with consumers appearing to trade up to more specialty and higherpriced items as well as increased product launch activity in the women’s and unisex (segment not tracked
in FDMx) segments, likely offering an explanation for the shifts in market share.
Sales of fragrances, by segment
FIGURE 21: SALES OF FRAGRANCES, SEGMENTED BY TYPE, 2010 AND 2012
2010
2012 (est.)
$million
Share of
market
%
$million
Share of
market
%
Change in
sales 2010-12
%
Women's
Men's
1,935
1,131
63.1
36.9
2,253
1,257
64.2
35.8
14.1
10.0
Total
3,066
100.0
3,510
100.0
12.6
45
Segment Performance—Women’s Fragrance
Fragrances
US, September 2012
Segment Performance—Women’s Fragrance
Key points

The women’s fragrance segment grew 9% from 2007-12 (est.) and is forecast to see continued
gains through 2017, though growth rates are anticipated to slow.

New product activity combined with the strong performance of specialty beauty and “other”
retailers outside of FMDx is responsible for segment growth.

The segment holds the majority of the market share and is expected to see gains in share.
Women’s fragrance segment healthy and growing
The sales forecast for this segment was rather cautious just one year ago, but healthy sales thus far in 2012
have led to a more optimistic outlook for women’s fragrance. Declines in new product development
combined with unstable economic conditions led to decreased sales and participation in the segment over
recent years. As women are not very brand loyal, with only 20% of female consumers indicating loyalty to
one brand (see Mintel’s Fragrances—U.S, September 2011), new product launches are key in attracting
consumer attention and propelling growth. As new product development picks up (see Innovations and
Innovators), along with women trading up to higher-priced items, sales growth is expected to increase.
Continued product innovation will be paramount in attracting and keeping the attention of women as the
majority of them are not brand loyal and enjoy switching between a variety of scents (see Attitudes toward
Fragrance). Also, as indicated in the Interest in Product Innovations section, both women and men
express high levels of interest in added benefits, new forms, and scent extension, making the category
prime for new product innovation. While celebrity fragrances are clearly here to stay and contributing to
category sales, customized fragrances based on cities, destinations, and even art are creating a more
authentic fragrance experience. Natural, eco-friendly, and high end perfumes are also driving growth in
the category.
Sales and forecast of women’s fragrance
FIGURE 22: SALES AND FORECAST OF WOMEN’S FRAGRANCE, AT CURRENT PRICES, 2007-17
2007
2008
2009
2010
2011
2012 (est.)
2013 (fore.)
2014 (fore.)
2015 (fore.)
2016 (fore.)
2017 (fore.)
$million
% change
Index (2007 = 100)
Index (2012 = 100)
2,070
1,907
1,848
1,935
2,109
2,253
2,375
2,518
2,632
2,754
2,857
na
-7.9
-3.1
4.7
9.0
6.8
5.4
6.0
4.5
4.6
3.8
100
92
89
93
102
109
115
122
127
133
138
92
85
82
86
94
100
105
112
117
122
127
46
Segment Performance—Men’s Fragrance
Fragrances
US, September 2012
Segment Performance—Men’s Fragrance
Key points

Due to projected growth of 4.6% in 2012, the men’s segment appears to be healthy, with sales
gains projected through 2017.

However, despite strong growth in 2011 and 2012, the men’s segment has lost share to women’s
fragrances from 2010-12.

New product growth and specialty retailer success has helped the men’s segment, but with the
influx of “male-specific” products in FDMx, the men’s segment is seeing stronger performance
in traditional retail channels than women’s fragrances. Since men are more likely than women
to shop for fragrances at FDMx channels (see Retail Channels), opportunities to create “man
aisles” as well as increase product offerings dedicated to solving the grooming needs of men exist
in these channels.
Men’s segment strong, but still recovering
Men’s fragrances began to see a turnaround in 2011, but sales are not yet at the levels seen in 2007, with
the segment down 4% in the period 2007-12 (est.). While the women’s segment has been propelled by
growth in specialty retail and higher-priced items, the men’s segment is seeing stronger success with
lower-priced items like body sprays and shower gels from power players like Axe and Old Spice in FDMx
(see Brand Share). The steady pace of new product introductions in recent years, particularly in
comparison to the women’s segment, which saw steep declines, has led to steadier (albeit less dramatic)
growth for the segment in 2011-12 (est.). Mintel forecasts strong growth for the segment, driven by
continued new product launches and activity in the “male-specific” category in FDMx retail channels.
Sales and forecast of men’s fragrance
FIGURE 23: SALES AND FORECAST OF MEN’S FRAGRANCE, AT CURRENT PRICES, 2007-17
2007
2008
2009
2010
2011
2012 (est.)
2013 (fore.)
2014 (fore.)
2015 (fore.)
2016 (fore.)
2017 (fore.)
$million
% change
Index (2007 = 100)
Index (2012 = 100)
1,307
1,194
1,133
1,131
1,202
1,257
1,282
1,351
1,448
1,541
1,625
na
-8.6
-5.1
-0.2
6.3
4.6
2.0
5.4
7.2
6.4
5.4
100
91
87
87
92
96
98
103
111
118
124
104
95
90
90
96
100
102
107
115
123
129
47
Retail Channels
Fragrances
US, September 2012
Retail Channels
Key points

The “other” segment dominates sales of fragrances, representing an 83% market share in 2012,
and reflecting sales growth since 2010. Such dominance is largely due to the wide range of
purchase locations including high end retailers like specialty beauty and department stores as
well as value-driven retailers like supercenters and warehouse clubs.

Drug stores are the top FDMx outlet for fragrance sales, though they are experiencing the
steepest declines among all retail channels, at 7.4% over the period 2010-12 (est.)

Supermarkets remain a relatively small segment and continue to struggle in the fragrance
category with a predicted total market share of only 3.7% in 2012.
Growth driven by “other” channels, leads category in sales growth
After posting sales declines during the recession, the fragrance category is rebounding with sales in both
the women’s and men’s segment on the upswing, and continued sales growth predicted through 2017 (see
Segment Performance). However, FDMx channels are losing market share to “other” channels, most likely
to high end retailers like specialty beauty and department stores, particularly in the women’s segment. The
women’s segment is seeing an increase in new product introductions as well as increased interest in
higher-priced items (see Innovations and Innovators), likely having a negative impact on FDMx retailers.
Despite stronger commitment to beauty, drug stores lose share
While major drug store chains like Duane Reade and Walgreens have invested in making their beauty
departments bigger and better, as well as expanding their grocery offerings in an attempt to make them a
one-stop shopping destination, drug stores posted the steepest dollar declines in the period 2010-12 (est.).
As previously mentioned, new product launches, particularly of higher-priced items, have sent consumers
to specialty beauty and other premium retailers when seeking out fragrance. However, drug stores remain
the preferred channel for purchasing fragrance, particularly among men (see Purchase Locations). As men
are more likely to seek the convenience offered by drug stores, combined with the continued popularity of
lower-priced, male-specific personal care items like body sprays and scented shower gels, drug stores do
have an opportunity to appeal to the male consumer.
48
Retail Channels
Fragrances
US, September 2012
Sales of fragrances, by channel
FIGURE 24: SALES OF FRAGRANCES, BY CHANNEL, 2010 AND 2012
2010
Market share
2012 (est.)
Market share
$million
%
$million
%
Change in sales
2010-12
%
Supermarkets
Drug stores
Other
135
503
2,428
4.4
16.4
79.2
130
468
2,912
3.7
13.3
83.0
-4.5
-7.4
16.6
Total
3,066
100.0
3,510
100.0
12.6
SOURCE: MINTEL/BASED ON SYMPHONYIRI GROUP INFOSCAN REVIEWS; U.S. CENSUS BUREAU ECONOMIC CENSUS
49
Retail Channels—Supermarkets
Fragrances
US, September 2012
Retail Channels—Supermarkets
Key points

Supermarkets represent the smallest retail channel for fragrances and continue to struggle, with
dollar sales declining 18% since 2007.

Limited product selection, along with not being viewed as a fragrance destination, are a few
factors impacting the performance of fragrance at supermarkets.
Supermarket sales continue to decline
Supermarkets represent the smallest share of fragrance sales, and have been posting steady declines since
2007. As specialty beauty retailers proliferate, along with a vast array of retailers selling fragrance,
supermarkets aren’t seen as a beauty destination. Additionally, product selection is often limited and
prices are usually not competitive with other FDMx retailers. However, as seen with drug stores,
supermarkets are more popular with younger men, with 69% of those aged 18-34 reporting making
fragrance purchases at supermarkets, compared to 43% of total fragrance wearers (see Purchase
Locations).
Creating a “man aisle” destination at supermarkets could appeal to men looking for convenient, one-stop
shopping. Illustrating this idea, Westside Market, a grocery store in New York City, recently created a
“man aisle,” offering products traditionally geared toward men like beer, barbecue sauce, chips, and
razors. As discussed in the New York Post, July 26, 2012,
“It’s your essentials… It’s your water, alcohol, soaps, shampoos, deodorants, razors.”
– Ian Joskowitz, Chief Operating Officer of Westside Market NYC
As further stated in the New York Post article, “guys don’t like taking shopping lists, (having everything in
one place) helps them remember what they need.” Including items like cologne or body spray in this “man
aisle” could make fragrance be seen as an “essential” purchase.
Supermarket sales of fragrances
FIGURE 25: SUPERMARKET SALES OF FRAGRANCES, AT CURRENT PRICES, 2007-12
2007
2008
2009
2010
2011
2012 (est.)
$million
% change
Index (2007 = 100)
157
148
143
135
133
130
-5.9
-3.7
-5.1
-1.9
-2.5
100
94
91
86
84
82
SOURCE: MINTEL/SYMPHONYIRI INFOSCAN REVIEWS
50
Retail Channels—Drug Stores
Fragrances
US, September 2012
Retail Channels—Drug Stores
Key points

Drug stores are showing steeper declines than other FDMx channels despite efforts to upscale
the beauty offerings in many drug store chains.

Drug stores appear to be losing share to higher end retailers as consumers are “trading up” to
premium and specialty fragrance offerings.

As drug stores continue to lose share, opportunities exist to engage men and create a shopping
experience more likely to cater to their needs and emphasize the convenience of one-stop
shopping.
Despite efforts to improve beauty offerings, drug stores lose share
Much was made of the efforts of drug store giants like Walgreens, CVS, and Duane Reade to improve
beauty offerings and create a more upscale shopping environment. While these efforts have been more
effective in categories like color cosmetics, fragrance sales are in decline at these retailers. In fact, CVS
recently shuttered its Beauty 360 concept, which was an attempt to offer more premium cosmetic,
skincare, and fragrance brands to the consumer in a drug store environment. CVS will instead refocus its
efforts on the mass-market beauty business.
Drug store most popular retailer for men’s fragrance purchases
While drug stores are struggling with fragrance sales overall, opportunities exist to help curb those
declines by catering to key consumers. Men state drug stores as their retailer of choice when it comes to
buying fragrance (see Purchase Locations). Since drug stores are likely to carry lower-priced fragrances
and line extension items like shower gel and body sprays it would make sense that this would be the
retailer of choice for men, especially given the strong growth of line extension segments (see Fragrance
Usage). Additionally, drug stores offer the convenience of one-stop shopping, no doubt an appealing
aspect for men. Creating a male specific destination at drug stores could be fruitful, particularly as more
mass retail brands expand into the men’s grooming category. As further detailed in Retail Channels—
Supermarkets, Westside Market, a specialty supermarket retailer in New York City, is embracing this
concept and taking the idea to fruition.
FIGURE 26: DRUG STORE SALES OF FRAGRANCES, AT CURRENT PRICES, 2007-12
2007
2008
2009
2010
2011
2012 (est.)
$million
% change
Index (2007 = 100)
540
519
503
503
490
468
-4.0
-3.0
0.0
-2.5
-4.5
100
96
93
93
91
87
SOURCE: MINTEL/SYMPHONY IRI INFOSCAN® REVIEWS
51
Retail Channels—Other Retail Channels
Fragrances
US, September 2012
Key points

The “other” segment holds the largest share in the category and is also displaying the strongest
growth. Given the large range of retailers in this channel, the size of this channel is to be
expected.

Category growth appears to be driven by consumers “trading up” to premium brands, often
only available at specialty beauty and higher end retailers.

Women are likely driving the majority of growth in this segment, as specialty retailers are their
preferred retailer.
Strong sales in the “other” segment are driving category growth
After experiencing declines during the economic recession, the “other” segment started to see things turn
around with modest growth in 2010, followed by healthy growth in 2011 and predicted for 2012. Sales are
expected to reach $2.9 billion in 2012, increasing 9% over 2007. While this channel encompasses a variety
of retailers including supercenters and warehouse clubs, growth is likely driven by specialty beauty and
high end retailers.
Women more likely to shop specialty beauty over FDMx channels
As seen in the Purchase Locations section of this report, specialty retailers are the preferred channel for
women making fragrance purchases (particularly younger women). With 86% of women 18-34 shopping
at specialty retailers and 40% shopping at Sephora, these retailers are clearly connecting with these
women and making themselves a fragrance destination. These retailers offer a large range of scents,
brands, and forms, at a wide range of price points, to appeal to the consumer desire to experiment.
Specialty retailers like Victoria’s Secret and Bath and Body Works offer a plethora of scents, extended
into a variety of forms, allowing women to “layer” their favorite scents. Sephora prominently displays
fragrances, encourages sampling, and offers a variety of gift packs, making it a prime destination for
fragrance purchases. Improvements in consumer confidence, combined with increased new product
launches, point to promising growth prospects for the “other” segment.
52
Fragrances
US, September 2012
Other retail channels sales of fragrances
FIGURE 27: OTHER SALES OF FRAGRANCES, AT CURRENT PRICES, 2007-12
2007
2008
2009
2010
2011
2012 (est.)
$million
% change
Index (2007 = 100)
2,679
2,433
2,336
2,428
2,688
2,912
-9.2
-4.0
3.9
10.7
8.3
100
91
87
91
100
109
SOURCE: MINTEL/SYMPHONY IRI INFOSCAN® REVIEWS; U.S. CENSUS BUREAU ECONOMIC CENSUS
53
Leading Companies
Fragrances
US, September 2012
Leading Companies
Key points

Sales have fluctuated among all the leading companies in FDMx, though most are posting
declines leading to an overall sales decline in the category of 2.4% in the 52-week period ending
June 10, 2012.

Unilever and P&G posted the biggest sales gains at FDMx over the 52-week period ending June
10, 2012, driven by the men’s fragrance segment.

While remaining the top FDMx company, Coty Beauty continues to see sales declines in FDMx
channels.
Category showing growth but sales decline in FDMx
Retail sales of fragrance fell by 2.4% through FDMx channels for the year ending June 10, 2012. This is
consistent with what we are seeing in retail channels where drug stores and supermarkets are in decline
while the “other” segment, likely driven by specialty beauty, is posting strong gains. Coty Beauty remains
the top company in FDMx but continues to see declines in sales and share. Sales fell by 7.6% in the 52week period ending July 10, 2011 (see Mintel’s Fragrances—U.S., September 2011), and saw further
declines of 7.7% in the 52-week period ending June 10, 2012.
Sales gains by Unilever and P&G driven by men’s segment
Unilever and P&G posted the strongest gains in FDMx at 4.2% and 4%, respectively. Unilever’s Axe and
Old Spice by P&G bolstered sales in the men’s fragrance segment. P&G also saw success in the women’s
segment with mass brands like Secret as well as fine fragrance brands like Burberry and Giorgio.
54
Leading Companies
Fragrances
US, September 2012
Manufacturer sales of fragrances
FIGURE 28: FDMX SALES OF FRAGRANCES BY LEADING COMPANIES, 2011 AND 2012
Company
52 weeks
ending June
12, 2011
$million
Market
share
Market
share
%
52 weeks
ending June
10, 2012
$million
%
Change in
sales
2011-12
%
Share
change
2011-12
% point
Coty Beauty
Unilever
Procter & Gamble
Elizabeth Arden Inc.
Fifth & Pacific Companies, Inc.
Parfums De Coeur
L'Oréal
Estée Lauder Inc.
Chattem Inc.
Beiersdorf Inc.
167.0
111.5
75.5
59.5
36.6
38.3
37.5
22.3
15.9
16.6
20.4
13.6
9.2
7.3
4.5
4.7
4.6
2.7
1.9
2.0
154.2
116.3
78.5
53.5
35.9
35.3
30.3
20.2
16.3
16.1
19.3
14.5
9.8
6.7
4.5
4.4
3.8
2.5
2.0
2.0
-7.7
4.2
4.0
-10.2
-2.0
-7.7
-19.2
-9.5
3.0
-2.8
-1.1
0.9
0.6
-0.6
0.0
-0.3
-0.8
-0.2
0.1
-
Subtotal
580.7
70.8
556.6
69.6
-4.2
-1.2
Other companies
192.7
23.5
198.5
24.8
3.0
1.3
Private label
46.5
5.7
44.8
5.6
-3.7
-0.1
Total
819.9
100.0
799.8
100.0
-2.4
-
Data may not equal due to rounding
SOURCE: MINTEL/SYMPHONYIRI GROUP INFOSCAN REVIEWS
55
Brand Share—Women’s Fragrance
Fragrances
US, September 2012
Key points

The three top companies in the women’s segment of FDMx all posted sales declines over the 52week period ending June 10, 2012.

P&G showed the healthiest gains in the women’s segment driven by strong mass beauty brands
Secret and Olay.

Within the FDMx market, sales of women’s fine fragrances are declining across the board
despite FDMx retailer attempts to strengthen their beauty presence. Lower-priced, line
extension items from strong mass brands are showing the most success.
Women’s fragrance struggles in FDMx
After posting an overall decline of 1.8% in the 52 weeks ending July 10, 2011, the FDMx women’s
fragrance segment is experiencing stronger declines in the period ending June 10, 2012, with sales falling
3.8%. New celebrity scent offerings like actress Halle Berry’s Reveal infuse short-term growth, but
maintaining product sustainability and building brand loyalty is challenging. This is illustrated by the near
50% decline in FDMx sales of Heat by singer Beyoncé. While many of these companies sell outside of
FDMx channels, making it difficult to assess total performance of these brands, brand loyalty has
remained a challenge across the category. New launches and product innovation waned during the
recession as tracked by Mintel GNPD (see Innovations and Innovators), but as the category as a whole is
on the upswing, increased product innovations along with increased new product introduction (see Insights
and Opportunities) will hopefully inject positive growth into this segment. Also, keep an eye on Elizabeth
Arden who recently acquired the global licenses for singers Justin Bieber and Nicki Minaj fragrance
brands, making it a serious threat to Coty in the women’s fragrance segment.
Mass fragrance products showing signs of success
Olay and Secret, two of P&G’s mega-brands, have seen positive gains driven by lower-priced items like
body sprays, scented body wash, and scented lotions. Secret has a line of four body sprays that are
targeting young women and positioned as “fabulous fun and bold or light, nature-inspired scents,” offering
similar fragrances often seen in higher-priced specialty beauty retailers like Victoria’s Secret that are
particularly appealing to young women (see Product Usage). Olay has three body collections that each
include two body washes, a lotion, and a beauty bar that are based on scents positioned as either
“indulgent,” “exotic,” or “clean,” depending on the collection. Again, these collections are very femaleoriented, with attractive packaging, and offer scents frequently seen in higher-priced scented products,
along with offering the skincare benefits associated with Olay. Certainly the strong brand equity of Secret
and Olay allows them ample shelf space at retailers combined with strong retailer promotions making
them visible and available to consumers. Promoting products as ultra-feminine could be effective and offer
competition to the higher-priced body sprays, lotions, and shower gels seen in specialty beauty and
popular with the younger consumer. The “overtly male” strategy has certainly been successful for Axe and
Old Spice in the men’s segment and adopting a similar strategy for women in the FDMx channels could
prove beneficial.
56
Fragrances
US, September 2012
Secret Scent Expressions Ooh-La-La Lavender Body Splash is available in
newly designed packaging. The body splash is fragranced with the essence of
luscious lavender blooms infused with invigorating, sun-drenched lilies.
Olay Luscious Embrace Moisturizing Body Wash is available in a newly
designed 18-fl. oz. pack. Described as a rich emulsion, the product is formulated
with jojoba butter and merges the scent of crushed orchid extract with hints of
papaya, blackberry, and black currant. According to the manufacturer, it features a
cleansing ribbon paired with a moisturizing ribbon to envelop the body like a
botanical-infused steam treatment. Also available is a 12-fl. oz. pack.
SOURCE: MINTEL GNPD
Struggles continue for Coty Beauty in FDMx
Market leader Coty Beauty fell 10.3% in the women’s segment over the 52-week period ending June 10,
2012, due to large declines by Beyonce Heat and Davidoff Cool Water as well as smaller declines posted
by several other fine fragrances. The new launch Reveal by Halle Berry will likely infuse some short-term
growth but it’s difficult to assess how sustainable that will be. While relatively small, CK One by Calvin
Klein posted a small gain of 2% and is line with the unisex trend occurring in the category (see
Innovations and Innovators). CK One has been a leader in the dual gender/unisex fragrance category since
its launch in 1994. At the time, a unisex fragrance was considered innovative for the category and with the
launch of the CK One cosmetic line in Spring 2012, the brand is migrating into categories not typically
seen in fragrance. While fragrances have extended into body care products like lotion and shower gel, CK
One is expanding into relatively uncharted territory for fragrance by adding color cosmetics to its
portfolio. It will be interesting to see how successful this venture is and gauge consumers’ reaction to this
move.
57
Fragrances
US, September 2012
Manufacturer sales of women’s fragrances
FIGURE 29: FDMX SALES OF WOMEN’S FRAGRANCES BY LEADING COMPANIES, 2011 AND 2012
Company
Coty Beauty
Elizabeth
Arden Inc.
Parfums De
Coeur
Brand
52 weeks
ending
June 12,
2011
$million
Share of
segment
Share of
segment
Change in
sales
2011-12
Share
change
2011-12
%
52 weeks
ending
June 10,
2012
$million
%
%
% point
Total
Calvin Klein CK
One
Beyonce Heat
Calvin Klein
Eternity
Jovan Musk For
Women
Calvin Klein
Obsession
Heidi Klum Shine
Jovan White Musk
Davidoff Cool
Water
Reveal by Halle
Berry
Calvin Klein
Euphoria
Other
93.0
4.4
22.2
1.1
83.4
4.5
20.7
1.1
-10.3
2.0
-1.5
0.1
7.8
4.4
1.9
1.0
4.1
4.0
1.0
1.0
-47.3
-7.7
-0.8
-
3.9
0.9
3.7
0.9
-3.5
-
3.4
0.8
3.3
0.8
-1.6
-
3.3
3.2
0.8
0.8
3.3
3.1
2.9
0.8
0.8
0.7
-7.0
-10.3
0.8
-0.1
1.3
0.3
2.8
0.7
120.0
0.4
2.8
0.7
2.6
0.6
-7.3
-
58.5
14.0
48.9
12.2
-16.3
-1.8
Total
52.8
12.6
47.5
11.8
-10.0
-0.8
Elizabeth Taylor's
White Diamonds
Red Door
Fantasy Britney
Spears
White Shoulders
Elizabeth Taylor's
Passion
Other
12.9
3.1
12.7
3.2
-1.3
0.1
6.1
4.4
1.4
1.0
5.6
4.5
1.4
1.1
-7.9
1.8
-0.1
0.1
3.5
3.0
0.8
0.7
3.2
2.6
0.8
0.6
-9.0
-14.4
-0.1
22.9
5.5
18.9
4.7
-17.2
-0.8
Total
25.6
6.1
23.9
5.9
-6.5
-0.2
Body Fantasies
Signature
Body Fantasies
Windsong
Sexiest Fantasies
Other
4.1
1.0
6.2
1.5
51.6
0.6
4.0
2.4
3.1
12.0
1.0
0.6
0.7
2.9
2.4
2.3
2.3
10.8
0.6
0.6
0.6
2.7
-40.3
-3.5
-26.0
-10.5
-0.4
-0.2
-0.2
58
Fifth &
Pacific
Companies,
Inc.
Fragrances
US, September 2012
Total
20.4
4.9
20.6
5.1
1.1
0.2
Viva La Juicy
Juicy Couture
Couture Couture
by Juicy Couture
Other
7.2
4.0
0.5
1.7
0.9
0.1
7.1
3.1
2.1
1.8
0.8
0.5
-2.1
-21.4
291.8
-0.2
0.4
8.6
2.1
8.3
2.1
-3.9
-
Total
16.2
3.9
17.5
4.3
7.9
0.5
Secret Scent
Expressions
Giorgio Beverly
Hills
Burberry Brit
Olay Luscious
Embrace
Red By Giorgio
Other
2.7
0.7
3.3
0.8
22.1
0.2
7.0
1.7
9.5
2.4
34.8
0.7
2.1
0.0
0.5
0.0
1.7
1.7
0.4
0.4
-17.9
-
-0.1
0.4
1.4
2.9
0.3
0.7
1.3
0.1
0.3
0.0
-11.4
-98.0
0.0
-0.7
Chattem Inc.
Total
Gold Bond
Gold Bond
Ultimate
15.9
13.8
2.1
3.8
3.3
0.5
16.3
14.3
2.0
4.1
3.6
0.5
3.0
3.7
-1.6
0.3
0.3
-
Unilever
Total
Degree Women
Dove Go Fresh
Cool Essentials
Dove
Dove Go Fresh
Other
16.7
3.9
2.6
4.0
0.9
0.6
15.9
3.0
2.6
4.0
0.7
0.6
-4.6
-21.7
-2.4
-0.2
-
1.0
2.4
6.8
0.2
0.6
1.6
2.4
2.3
5.7
0.6
0.6
1.4
143.9
-4.1
-17.2
0.4
0.0
-0.2
Revlon Inc.
Total
Jean Nate
Charlie
Ciara
Other
14.2
5.3
3.0
2.6
3.4
3.4
1.3
0.7
0.6
0.8
12.4
4.8
2.6
2.4
2.7
3.1
1.2
0.6
0.6
0.7
-12.7
-10.0
-14.0
-6.6
-20.3
-0.3
-0.1
-0.1
-0.1
Estée Lauder
Inc.
Total
12.8
3.1
12.1
3.0
-5.6
-0.1
Tommy Girl
Beautiful
Clinique Happy
Estée Lauder
Pleasures
Be Delicious
Other
3.7
1.9
1.3
1.1
0.9
0.5
0.3
0.3
3.5
1.9
1.5
1.3
0.9
0.5
0.4
0.3
-5.7
1.5
19.4
14.5
0.1
0.1
1.5
3.4
0.4
0.8
1.1
2.8
0.3
0.7
-26.5
-16.1
-0.1
-0.1
Total
11.9
2.8
11.5
2.8
-3.7
-
Paris Hilton
Ed Hardy
Other
3.1
1.8
7.1
0.7
0.4
1.7
2.6
2.3
6.5
0.7
0.6
1.6
-14.5
29.1
-7.2
-0.1
0.1
-0.1
Procter &
Gamble
Parlux
Fragrances
59
Fragrances
US, September 2012
Other
companies
105.7
25.3
109.2
27.1
3.3
1.9
Private label
33.1
7.9
32.0
7.9
-3.4
-
Total
418.3
100.0
402.4
100.0
-3.8
-
Data may not equal due to rounding
60
Brand Share—Men’s Fragrance
Fragrances
US, September 2012
Key points

After modest sales gain in 2010-11, sales took a slight dip in the men’s fragrance segment in
FDMx for the period ending June 10, 2012.

Mass market mega-brands Axe (Unilever) and Old Spice (P&G) continue to experience sales
growth due to the popularity of line extension items like body sprays and shower gels.

While lower-priced body care fragrances gain momentum, traditional cologne brands are not
faring as well in FDMx.
Men’s fragrance growth slows though faring better than women’s
Men’s fragrance appeared to be gaining momentum at FDMx after the recession with modest growth in
the 52-week period ending June 12, 2011. However, sales showed a slight decline of 1% for the period
ending June 10, 2012.
Unilever and P&G continue to have success in men’s segment
Industry heavyweights, Unilever and P&G, continue to have success with Axe and Old Spice. These
brands have created a successful formula of offering body care items like body spray and shower gels with
overtly male fragrances combined with clever advertising and strong social media campaigns. While still
small compared to Axe and Old Spice, Unilever is seeing success with Dove Men+Care, which is
targeting men in a more subtle and benefit-driven manner consistent with the Dove brand, while still being
distinctly male.
Traditional cologne brands struggle in FDMx
While body sprays and other body care fragrances are driving growth, traditional cologne brands continue
to struggle at FDMx. L’Oréal is seeing a decline of 16.5% with sales dropping across the board, with the
Polo franchise being the hardest hit. Coty Beauty also continues to lose share though not to the degree as
seen in the women’s segment or when compared to L’Oréal. Coty is seeing some success with its adidas
brand, which offers a line of products including EDT, body sprays, shower gels, and deodorant. In fact,
Coty recently announced the launch of a new personal care collection for men, including body wash,
deodorant, body spray, and antiperspirant, to be available exclusively at Walmart. This line will retail at
$3.47/unit and is poised to offer strong competition to market leaders in the men’s segment while building
off the current momentum of the adidas brand (drugstorenews.com, Aug. 14, 2012).
61
Fragrances
US, September 2012
Manufacturer sales of men’s fragrances
FIGURE 30: FDMX SALES OF MEN’S FRAGRANCES BY LEADING COMPANIES, 2011 AND 2012
Company
Brand
52 weeks
ending
June 12,
2011
$million
Share of
segment
Share of
segment
Change in
sales
2011-12
Share
change
2011-12
%
52 weeks
ending
June 10,
2012
$million
%
%
% point
Unilever
Total
Axe
Dove Men+Care
Other
94.9
92.5
2.3
0.1
23.6
23.0
0.6
-
100.3
97.5
2.8
-
25.2
24.5
0.7
-
5.8
5.4
25.6
-64.2
1.6
1.5
0.2
-
Coty Beauty
Total
Stetson
Davidoff Cool
Water
Calvin Klein
Obsession
Jovan Musk
Calvin Klein
Eternity
adidas Moves
Joop Homme
McGraw
Nautica Blue
McGraw Silver
Other
74.0
7.1
6.0
18.4
1.8
1.5
70.8
6.5
5.9
17.8
1.6
1.5
-4.4
-8.1
-0.8
-0.6
-0.1
-
5.9
1.5
5.7
1.4
-3.3
-0.1
4.8
4.7
1.2
1.2
4.6
4.6
1.2
1.1
-4.9
-2.1
-0.1
3.6
2.9
2.3
1.9
2.3
32.6
0.9
0.7
0.6
0.5
0.6
8.1
3.7
2.7
2.2
2.2
1.3
31.5
0.9
0.7
0.6
0.5
0.3
7.9
2.8
-7.2
-5.3
15.1
-42.6
-3.5
0.1
-0.2
-0.2
Total
59.3
14.8
61.1
15.4
3.0
0.6
Old Spice
Gillette Fusion
ProGilde
Old Spice Red
Zone
Gillette Series
Gillette Fusion
ProSeries
Other
27.6
6.8
6.9
1.7
29.7
6.9
7.5
1.7
7.3
2.0
0.6
0.1
6.3
1.6
5.9
1.5
-6.4
-0.1
6.2
2.4
1.5
0.6
5.8
1.7
1.5
0.4
-6.8
-28.6
-0.1
-0.2
9.9
2.5
11.1
2.8
11.4
0.3
Total
Drakkar Noir
Acqua Di Gio
Polo
Armani Black
Code
Polo Blue
Polo Black
Other
28.4
6.9
5.3
4.5
3.4
7.1
1.7
1.3
1.1
0.8
23.7
6.5
5.0
3.8
2.5
6.0
1.6
1.3
1.0
0.6
-16.5
-4.7
-6.0
-14.9
-24.8
-1.1
-0.1
-0.1
-0.2
-0.2
2.9
2.3
3.1
0.7
0.6
0.8
2.7
0.9
2.1
0.7
0.2
0.5
-5.2
-59.5
-32.4
-0.3
-0.2
Procter &
Gamble
L'Oréal
62
Fifth & Pacific
Companies,
Inc.
Fragrances
US, September 2012
Total
16.2
4.0
15.3
3.8
-6.0
-0.2
Curve
Usher
Curve Crush
Other
7.3
2.5
2.6
3.8
1.8
0.6
0.6
0.9
7.0
2.7
2.4
3.2
1.8
0.7
0.6
0.8
-3.6
5.7
-7.6
-17.0
0.1
-0.2
Beiersdorf Inc.
Total
Nivea For Men
Nivea For Men
Extreme Comfort
14.9
14.1
0.8
3.7
3.5
0.2
14.8
14.3
0.5
3.7
3.6
0.1
-0.7
1.8
-42.9
0.1
-0.1
Combe Inc.
Total
Aqua Velva
Classic Ice Blue
Williams Lectric
Shave
Other
12.8
5.2
3.2
1.3
12.3
5.2
3.1
1.3
-3.3
-1.7
-0.1
-
5.2
1.3
5.1
1.3
-1.0
-
2.3
0.6
2.1
0.5
-11.8
-0.1
Total
9.6
2.4
9.5
2.4
-1.5
-
Brut
9.6
2.4
9.5
2.4
-1.2
-
Other
companies
78.2
19.5
76.9
19.3
-1.6
-0.1
Private label
13.4
3.3
12.8
3.2
-4.4
-0.1
Total
401.6
100.0
397.5
100.0
-1.0
-
Helen Of Troy
Inc.
Data may not equal totals due to rounding
63
Innovations and Innovators
Fragrances
US, September 2012
New product launch trends
As tracked by Mintel GNPD, a full 1,000 new fragrance products were launched in 2010, which then
dropped to 882 new launches in 2011. So far in 2012 (as of July 2012), 619 new products have already
been launched showing the category is once again picking up the pace in terms of new product
introductions.
Celebrity fragrances still hot
While celebrity fragrances are not new, they still seem to be dominating new product introductions.
Celebrity fragrances have been successful in garnering a spike in sales but maintaining brand loyalty and
long term growth has proved to be challenging. However, this doesn’t seem to be stopping fragrance
manufacturers from collaborating with the hottest celebrities to launch new fragrances. Actress Halle
Berry, singer Beyonce, and reality television star Kim Kardashian are just a few of the latest celebrities to
put their name on a fragrance this year. Launches from singers Lady Gaga and Jon Bon Jovi and television
personality Nicole Richie are anticipated later in 2012.
Kim Kardashian True Reflection Eau de Parfum is described as more intense
and elegant fragrance that embodies feminine charms. It is also said to be a
representation of Kim Kardashian's present life. The scent notes of an enticing burst
of citrusy bergamot and succulent peach, infused with smooth coconut noir, night
blooming gardenia, and decadent chocolate orchid entwined with the rich patchouli
and warm woods.
Beyoncé Pulse Summer Edition Eau de Parfum is said to be the expression of
the energy that comes from the light and the empowerment, translating the
inexplicable energy felt during summertime. The fragrance is designed for women
with a "most tropical mix" to make them look attractive and delicious. The scent
includes top notes of pink pepper, icy mandarin and pear; middle notes of ginger
orchid, jasmine and Tunisian orange flower; and base notes of sapphire wood,
musks, and benzoin.
SOURCE: MINTEL GNPD
With the success of his Somebody fragrance in 2011, singer Justin Bieber launched his second fragrance,
Girlfriend, in 2012. Once again, Justin enlisted his fans and the power of social media to spread the word
of his latest creation, no doubt to the delight of his young female fans.
64
Fragrances
US, September 2012
Justin Bieber's Girlfriend Eau de Parfum is described as a flirty, personal and
inviting fragrance that envelops the skin, reaching the lips for a "first-kiss feeling with
each splash." It features "Chance" (top notes) of sparkling pear, crisp mandarin, rich
blackberry and mara strawberry; "Dream" (heart notes) of pink freesia, star jasmine,
apricot nectar and orange blossom; and "Kiss" (base notes) of vanilla orchid and
luminous musk. It is available in 3.4-fl. oz. ($59) and 1.7-fl. oz. ($49) eye-catching
bottles surrounded with gold lacing and adorned with a magnetic cap.
SOURCE: MINTEL GNPD
Unisex fragrances surge in popularity
Overall product introductions may still be down overall for the fragrance category, but the rise in unisex
fragrances thus far in 2012 is dramatic. According to Mintel GNPD, unisex fragrances accounted for 19%
of new product launches in 2011 and account for 43% of launches so far in 2012. Men’s and women’s
fragrance launches seem to be down, although it’s hard to anticipate new product launches for the
remainder of the year.
FIGURE 31: FRAGRANCE PRODUCT INTRODUCTIONS, BY SUBCATEGORY, 2007-12*
Subcategory
2007
#
2008
#
2009
#
2010
#
2011
#
2012*
#
Share 2007-12*
%
Women's fragrances
Men's fragrances
Unisex fragrances
248
58
45
440
90
64
415
94
60
731
136
133
607
105
170
305
48
266
70.6
16.1
13.3
Total sample
351
594
569
1000
882
619
4015
* Jan 1-July 24, 2012
SOURCE: MINTEL GNPD
The launch of CK One in 1994 put the unisex fragrance concept on the map. The concept waned in
popularity since then but seems to be making a comeback both in prestige and specialty. A fragrance that
is not overtly male or female often lines up with fashion trends or broader lifestyle trends. Since fragrance
is so influenced by fashion trends, it wouldn’t be surprising to see the pendulum swing the other way in
the near future with fragrance manufacturers once again launching more male and female targeted
fragrances. However, the unisex fragrance trend is not to be dismissed as indicated by the sheer number of
launches in the segment.
The Different Company is taking a high end approach to unisex fragrances with a line of products that
“features delicate and elegant materials said to last on the skin.”
The Different Company L'Esprit Cologne is a collection of fragrances created by perfumer Emilie
Coppermann. The perfumes features delicate and elegant materials said to last on the skin. The product
comes in a refillable bottle made of reborn glass and solid metal to preserve endlessly.
65
Fragrances
US, September 2012
Sienne d'Orange
Tokyo Bloom
Midnight
Elegant, original, and fruity
Sophisticated, ethereal, and pure
Combines top notes of Italian
orange and green cardamom
seeds; heart notes of carrot
essence and iris; and base notes
of white leather and apricot wood.
Combines top notes of basil
leaves and blackcurrant buds;
heart notes of star jasmine and
cyclamen petals; and base notes
of gaiac wood, musk, and amber.
Sensual, enveloping, and
unusual, meant to be worn in the
evening to liberate from tensions
and seduce
Combines top notes of bergamot,
angelica root, and neroli; middle
notes of iris, mastic, and white
jasmine; and base notes of
benzoin, labdanum, and ambrette
seeds.
SOURCE: MINTEL GNPD
Body sprays
Body sprays continue to grow in popularity with 50% of consumers reporting use (see Fragrance Usage).
Brands like Axe spurred growth of these items by offering a low-price fragrance option for young men.
However, it seems that premium brands have taken a cue from mass by offering body spray versions of
already popular fragrances. Additionally, specialty retailers like Victoria’s Secret and Bath & Body Works
also offer a tremendous amount of scent variety with body sprays. Given the popularity of these retailers
with young women, in addition to the popularity of this form, it doesn’t appear that body sprays will slow
in growth anytime soon, especially given their lower-price, lighter scent, and wide range of fragrance
options.
66
Fragrances
US, September 2012
Axe Anarchy for Him Deodorant Bodyspray is said to be a unique all-over
deodorant that combines a quality fragrance with effective deodorant protection to
keep the user smelling great “all day or all night.” This product retails in a 4-oz. twist
top can. Also available is Fresh 24H Deodorant Stick (3 oz.) designed to help
reduce underarm odor, as well as Dry 24H Anti-Perspirant & Deodorant Invisible
Solid (2.7 oz.). It is available in a 3-oz. pack.
Axe Anarchy for Her Body Spray is said to be a unique all over body spray with a
quality fragrance to keep the user smelling great all day or all night. This product
retails in a 4-oz. twist top bottle.
The Ralph Lauren Big Pony Collection is a quartet of fragrances designed for
women. The range of perfumes is said to awaken daylight freshness and a positive
mood. Available as part of the collection is Blue 1, a sporty fragrance said to be for
the courageous and self-confident woman. Its fresh citrus scent includes notes of
grapefruit and blue lotus. Available as part of the fragrance range is Refreshing
Body Mist, in a 4.2-oz. pack.
The limited edition Victoria's Secret Pink Beach collection includes Summer Crush
Body Mist, which features a fragrance blending breezy dewberry with island orchid.
This product has not been tested on animals, and retails in an 8.4-fl. oz. pack.
Bath & Body Works Signature Collection Wild Berry Tulips Fine Fragrance
Mist is described as a delicate mist said to lightly scent skin with Wild Berry Tulips,
a flirtatious blend of red raspberry, sheer honeysuckle, and pink tulips. This product
retails in an 8-fl. oz. pack. Also available is Shimmer Mist. The company does not
test on animals.
SOURCE: MINTEL GNPD
Product innovations
Location, location, location
Going beyond celebrity and creating fragrances based on a location is an interesting way to capture
consumers by either reminding them of their favorite destination or evoking memories of home.
67
Fragrances
US, September 2012
Scents of Departure is a new line of fragrances based on popular cities and identified by their airport city
code (i.e., LHR London). The fragrances are advertised as “the essence of a city in a bottle” and are meant
to be collectible, portable, and wearable by men and women.
The Scent of Departure has been created by perfumer Gérald Ghislain and designer Magali Sénéquier to
recall one’s unforgettable trip. The collection of fragrances offers unique and international destinations in
a bottle, all carrying their three-letter airport code. The bottles are adorned with a ubiquitous barcode in
reference to the sticker attached to the suitcase.
LAX Los Angeles, an eau de toilette, is said to transport the user to places such as
Hollywood, Rodeo Drive, and the Walk of Fame. The scent combines top notes of
grapefruit, plum, and bergamot; heart notes of orange blossom, jasmine, and
gardenia; and base notes of sandalwood, amber, and musk.
LHR London, an eau de toilette, is said to transport the user to places such as
Hyde Park, the Serpentine Lake, and the London Eye. The scent combines top
notes of pine, turf, leaves, bergamot, orange, lemon, and tangerine; heart notes of
lotus flower, jasmine of water, cyclamen, marine accord, and freesia; and base
notes of patchouli, blonde wood, treemoss, gaiac wood, and white musk.
SOURCE: MINTEL GNPD
United Scents of America created a unisex line of fragrances based on state-based scents that are made in
the U.S. to “encourage jobs within the United States of America.”
United Scents of America has been created following the desire of Samantha and
Sacha to answer more effectively to client needs. The creators decided to develop
state-based scents that would translate memorable times through perfume, and all
the unisex products are made in New Jersey to encourage jobs within the U.S. The
collection includes Florida, a fragrance that combines top notes of fresh ozone,
Florida orange and grapefruit, ocean breeze, and key lime; heart notes of jasmine,
violet, rose, and melon; and base notes of sandalwood, rosewood, white musk,
peaches, and orange flower oil.
SOURCE: MINTEL GNPD
Take me out to the ballgame
The New York Yankees fragrance launch is being backed by a strong ad campaign that is expected to
reach 95% of New York City men aged 16-34. The ads will bear classic black-and-white shot-on-film
photography and the slogan “Past, Present, Forever” will show up all over New York City, from one entire
side of the No. 4 train that goes to Yankee Stadium to a bullpen sign. The team held a “Fragrance Day”
event inside the ballpark in June 2012 that gave the first 20,000 fans free samples and fragranced
bracelets. The fragrance also has a dedicated Facebook page where fans can request free samples (Ad Age,
March 13, 2012).
68
Fragrances
US, September 2012
The New York Yankees baseball team has launched an eau de toilette said to
embody their winning style, and sporty and confident attitude. Woody and fresh, the
fragrance includes notes bergamot, coriander, blue sage, crisp ivy leaves, orange
flower and geranium, patchouli, smooth sandalwood, and suede. The product is
available in 3.4-fl. oz. ($62) and 1.7-fl. oz. ($49) bottles.
SOURCE: MINTEL GNPD
To the extreme
As discussed in Insights and Opportunities, ultra-luxe fragrances that are evocative and unique allow
manufacturers to set their products apart and appeal to the consumer looking for a high end experience.
Embracing several fragrance trends, Osmos is taking fragrance to the extreme by offering a high-priced,
unisex fragrance line based on four different blood types.
Blood Concept is a celebration of the vivid and fascinating liquid that flows into the
veins. Created by Antonio Zuddas and Giovanni Castelli, the fragrances correspond
to the four different blood types, and are claimed to retrace the evolution of
manhood. As part of the range, O Perfume features a leather fragrance described
as visceral and intense. The scent includes notes of thyme, raspberry, cyperus
esculentus, rosehips, leather, birch, cedar, and metal. The product is available in a
60ml ($155) bottle spray as well as in a 40ml ($185) dropper shaped like an antique
medicine bottle.
SOURCE: MINTEL GNPD
Demeter is known for creating unusual, singular scents. Offered in a variety of forms, Demeter offers
straight forward, yet unexpected scents, like Gin & Tonic and Clean Skin, which are quite a departure
from the “fantasy” concepts usually seen in the fragrance world. The consumer desire for fresh and clean
scents is high with 55% of fragrance wearers claiming “fresh” to be their favorite scent (see Scent
Preferences). This trend is evident in other categories as well with consumers requesting “soap and water”
scents in candles (Village Candle brand analysis; see Mintel’s Candles—U.S., August 2012). Creating
scents built around the idea of “fresh” or “clean” could help address some of the consumer concern around
fragrances being perceived as too heavy. Light, clean scents may also increase usage frequency if scents
are considered easy to wear and more appropriate for daily use.
The Demeter Fragrance Library Stable fragrance is said to contain notes of fresh
hay, muck, and sweet animal sweat. The Roll On Perfume Oil retails in a .29-fl. oz.
rollerball format, and has an alcohol-free formula that is designed to be long-lasting.
The fragrance contains safflower oil, jojoba oil, and vitamin E to soften skin.
SOURCE: MINTEL GNPD
69
Fragrances
US, September 2012
Get it while it lasts
Limited edition fragrances are not a new concept, but scent expert Chandler Burr is taking this idea to
another level by combining the power of social media with the exclusivity of limited availability. Burr
partnered with OpenSky (a website offering products and services endorsed by celebrities and experts) by
introducing unnamed scents in small-sized, minimalist packaging. According to Happi, Burr describes the
fragrance on video—revealing neither its name nor fragrance house where it was created—and then offers
100 bottles for sale to OpenSky members. The social element comes into play because members can chat
with each other and interact online with Burr about the fragrance.
According to Burr, what makes the OpenSky Untitled project unique is that clients are “actually paying
both for the blinded perfume and—and this is the point—for the blindfold itself. Specifically I’m selling
the chance to smell a perfume stripped of marketing, signals, brands or cultural cues.” The first scent,
known initially as SOE101, debuted on June 1, 2012, and all 100 bottles sold out (Happi, July 2012).
http://www.youtube.com/watch?v=IhqYqM8uI_o
@katherine_chan: Ordered untld S01E02 to be part of Chandler Burr's
brilliant blind perfume project bit. ly/NMh0SJ @ChandlerBurr
RT
http://
SOURCE: TWITTER/OPENSKY
70
Marketing Strategies
Fragrances
US, September 2012
Overview of the brand landscape
Analyzing brand positions of leading companies is important to understanding the competitive landscape,
creating advertising collateral, and launching successful marketing campaigns. It also allows companies to
compare their own brand positions, and see if other, more compelling positions should be adopted.
Following is a discussion of several leading companies and the brand positioning/approach taken.
Within this section, Mintel includes commentary from Facebook, Twitter, and other social media sites. All
quotes are included verbatim, and as such, include typos and other grammatical errors as they originally
appeared.
Brand analysis: Chanel
With the launch of Chanel No. 5 in 1921, a fragrance giant was born. Chanel has a strong fragrance
portfolio including category leaders like Coco Mademoiselle, Chance, and Allure, and continues to be one
of the strongest and most identifiable fragrance brands in the industry. Chanel blends timeless elegance
with a minimalist style that is reflected across all its product categories including fashion, accessories,
cosmetics, and fragrance. This consistent brand image reflects its commitment to high quality products
and a classic, timeless style.
No product reflects this timelessness more than its debut fragrance, Chanel No. 5. The story surrounding
this fragrance is as intriguing as the fragrance itself. Legend has it that Mademoiselle Coco Chanel asked
Ernest Beaux, a Russian perfumer, to create a fragrance “that smells like a woman.” She was shown
several numbered samples and she chose the fifth sample. “Chanel introduced her new collection on the
fifth of May, the fifth month of the year, with the fifth sample as selected, and she named it N°5.”
(osmoz.com) In a category saturated with so many fragrance choices, Chanel No. 5 remains the top-selling
fragrance in the world and is often considered a “signature” fragrance for many women.
FIGURE 32: CHANEL LOGO
SOURCE: CHANEL.COM
FIGURE 33: BRAND ANALYSIS OF CHANEL NO. 5, 2012
Key brand value
Brand qualities
Tagline
Demographic target
Timeless
Classic, nostalgic, elegant
The now and forever
fragrance
Women, 30+
SOURCE: MINTEL
71
Fragrances
US, September 2012
Online initiatives
The Chanel fragrance website is classic, clean, and minimalistic, which is consistent with the brand
imagery. Due to the slightly older demographic of the Chanel No. 5 fragrance, along with its already
strong brand imagery and recognition, heavy social media and online presence isn’t part of the core
advertising strategy of the brand. However, the Chanel brand does have more than 6.9 million likes on its
Facebook page (this is for the entire Chanel portfolio, not just No. 5), and more than 769,000 followers on
Twitter. So while Chanel isn’t focused on social media as a way to generate buzz over its brands, it
certainly doesn’t lack a presence either.
FIGURE 34: CHANEL WEBSITE
SOURCE: CHANEL.COM
TV presence
Chanel No. 5 made big news in the fragrance world earlier this year by announcing actor Brad Pitt as its
newest spokesperson. According to Women’s Wear Daily-WWD (May 10, 2012),
“ … Chanel has chosen a host of celebrity faces to front the 91-year-old scent—from Ali McGraw,
Catherine Deneuve and Candice Bergen to Nicole Kidman, Audrey Tautou and Vanessa Paradis—
but Pitt’s signing marks the first time a man has been tapped to represent the brand.”
While this certainly marks a break from tradition for the brand, it’s definitely in line with the brand’s
emphasis on classic style and beauty, making Brad Pitt a logical choice. Television ads are expected to
first air overseas late in 2012.
72
Fragrances
US, September 2012
The current ad campaign running in the U.S. does not feature a spokesperson, it simply features the
fragrance bottle suggesting that a drop of Chanel No. 5 “is like nothing else.” Once again, simple imagery
communicating the timelessness of the brand sends a strong and consistent message.
FIGURE 35: CHANEL, TELEVISION AD, 2012
"CHANEL"
SOURCE: COMPETITRACK
Brand analysis: Selena Gomez
Celebrity fragrances continue to be popular with everyone from athletes to reality TV stars launching a
signature scent. These fragrances leverage the brand of the celebrity into a strong marketing campaign for
the fragrance. Young stars like Justin Bieber, with a very strong and loyal fan base, have experienced
tremendous success in the fragrance world. Actress/singer Selena Gomez is hoping to follow in Bieber’s
footsteps with the launch of her debut fragrance, Selena Gomez, in 2012. Selena Gomez started off as a
young actress on the Disney Channel and has since found fame in feature film roles and the music
industry. Selena is beloved by her young fans and is leveraging her fame by launching a clothing line for
Kmart as well as her debut fragrance.
FIGURE 36: SELENA GOMEZ LOGO
SOURCE: SELENAGOMEZPERFUMES.COM
FIGURE 37: BRAND ANALYSIS OF SELENA GOMEZ, 2012
Key brand value
Brand qualities
Tagline
Demographic target
Celebrity
Interactive, young, flirty
The debut fragrance
Tweens and teens, 12-18
SOURCE: MINTEL
Online initiatives
In contrast to Chanel, Selena Gomez is utilizing the full power of the internet and social media to promote
her brand. Selena enlisted the help of her fans in late 2011 in the creation of her debut fragrance by asking
them to vote for their favorite fragrance notes and ingredients on her website
www.selenagomezperfumes.com. In addition to getting her fans’ input, the first 50,000 participants
received a free sample of the fragrance and an opportunity to win time with Selena herself (WWD, Aug.
23, 2011). Selena Gomez also forged a partnership with Macy’s, launching her fragrance exclusively at
Macy’s and macys.com in mid-May 2012 prior to rolling out to wider distribution in August 2012.
73
Fragrances
US, September 2012
FIGURE 38: SELENA GOMEZ WEBSITE
SOURCE: SELENAGOMEZPERFUMES.COM
With more than 12 million followers on Twitter, Selena tweeted the ad for her new fragrance and posted it
on her Facebook page, once again embracing her fans and enlisting their feedback.
Selena GomezVerified@selenagomez
Hey Guys - This is the ad we shot for my new fragrance. Let me know what you
think!...http://fb.me/1OjBXxUgR
SOURCE: TWITTER/SELENA GOMEZ
Selena is using all forms of social media by debuting her fragrance ad on youtube.com and encouraging
her fans to “check it out.” The ad was posted on June 26, 2012, and already has 1.5 million visits.
http://www.youtube.com/watch?v=8w7WBxSt-Q8
Brand analysis: Curve Appeal
Curve was launched in 1996 under the Liz Claiborne brand and at the time was targeted toward men and
women in their 20s. However, realizing that those consumers are no longer in their 20s, Liz Claiborne
launched a younger, edgier version of Curve called Curve Appeal in early 2012. Curve Appeal isn’t just a
line extension of the original namesake fragrance, it’s a new line aimed at distinguishing itself from its
Curve predecessors. Curve Appeal has two fragrances, one for men and one for women, and is using a
strong social media campaign and celebrity spokespeople to promote the brand, unlike Curve.
74
Fragrances
US, September 2012
“Curve Appeal is ‘our attempt to introduce another arm of the House of Curve,’… . ‘\We’ve done
some ‘flankers’ in the past, like Curve Crush and Curve Wave, but never a new master brand.”
– Elizabeth Park, executive vice president for North America marketing at Elizabeth Arden in New
York (New York Times, Jan. 30, 2012).
The article goes on to quote Park on the “edgier, more social media approach” of the brand, to appeal to
“the habits of contemporary consumers in their 20s.”
While the verdict is still out regarding consumer acceptance, the men’s version of Curve Appeal earned
industry praise by winning two Fifi awards (a prestigious award ceremony for fragrances) earlier this year,
including best new broad appeal fragrance for men and best new packaging for men. Unlike the original
Curve, Curve Appeal will not be sold at mid-tier and high end department stores, but instead will be sold
in more mass retailers like drug stores, mass merchandisers, and value department stores.
FIGURE 39: CURVE APPEAL LOGO
SOURCE: GETCURVEAPPEAL.COM
FIGURE 40: BRAND ANALYSIS OF CURVE APPEAL FOR W OMEN AND MEN, 2012
Key brand value
Brand qualities
Tagline
Demographic target
Confident
Magnetic, sexy,
captivating, seductive
Do you have curve
appeal?
Young women and men in
their 20s
SOURCE: MINTEL
Online initiatives
Curve Appeal has enlisted celebrity spokespeople as part of its campaign, including reality TV star
Audrina Patridge and actor Kevin Zegers. Both celebrities are prominently featured on the brand website,
Twitter feed, and Facebook page.
75
Fragrances
US, September 2012
FIGURE 41: CURVE WEBSITE
SOURCE: GETCURVEAPPEAL.COM
Curve Appeal is using Twitter and Facebook to promote discounts, deals, and coupons for the fragrances
that are being featured in mass retailers nation-wide.
76
Fragrances
US, September 2012
getcurveappealVerified@getcurveappeal
Have you hit up Target yet for your curve appeal? Get
10% or more off on a .5 oz bottle of curve appeal women
or a 2.5oz curve appeal men...
SOURCE: TWITTER/GETCURVEAPPEAL
Print and other
Curve Appeal also launched a print campaign using imagery consistent with its website, Facebook page,
and Twitter feed. This ad features its male spokesperson and displays a QR code encouraging consumers
to scan and win a “Curve Appeal model experience.”
77
Fragrances
US, September 2012
SOURCE: INSTYLE MAGAZINE/CURVE APPEAL
78
Fragrance Usage Overview
Fragrances
US, September 2012
Key points

Lower-priced items like scented soap/shower gel, scented lotions, and body spray are the
products most likely to be worn and also most likely to be worn daily.

In contrast, higher-priced items like perfume and cologne are more likely to be worn only for
special occasions.

While nearly half of respondents report using perfume, frequency of use is fairly low, with only
13% of respondents using perfume on a daily basis.
Highest usage among lower-ticket items
Mintel’s custom research finds that 71% of consumers use a scented soap/shower gel and 53% use a
scented body lotion from a mass lotion manufacturer. While economic factors may have forced some
consumers to trade down to lower-priced items, these products offer a functional benefit beyond scent.
However, while these products are the most worn, frequency of usage is still fairly low with growth
existing for increasing usage. As discussed in Insights and Opportunities, positioning products with
skincare benefits like anti-aging or even health and wellness benefits like relieving headache symptoms
could increase product penetration and frequency of usage.
Majority of scented products only used occasionally
Except for scented soap/shower gel, consumers are most likely to report using scented products only on an
occasional basis. According to Mintel’s Fragrances—U.S., September 2011, a variety of reasons exist for
only using these products occasionally or not at all, including not being viewed as a necessity, too
expensive to wear regularly, or aversion to strong or overpowering scents. While a certain percentage of
the population avoids scented products due to allergies or other sensitivities, opportunities may exist to
increase usage occasions by introducing functional benefits such as anti-aging or antibacterial properties
(Interest in Product Innovations).
79
Fragrances
US, September 2012
FIGURE 42: FRAGRANCE USAGE, MAY 2012
Any
wear
Perfume/parfum
Eau de parfum
Eau de toilette
Eau de cologne
Body spray
Aftershave
Roll on perfume
Scented body lotion from a
fragrance line such as
Chanel or a specialty
retailer such as Bath &
Body Works or Victoria’s
Secret
Scented body lotion from a
lotion manufacturer, such
as Nivea or Vaseline
Scented body powder
Scented soap/shower gel
Every
day
%
%
Most, but
not all,
days of
the week
%
A few
days a
week
Only
occasionally
Only for
special
occasions
Never
%
%
%
%
45
29
32
37
50
30
20
45
13
4
5
6
12
6
4
8
9
7
7
8
11
7
4
10
9
6
8
8
12
9
5
11
14
11
12
14
15
9
8
17
13
8
7
10
7
4
3
6
42
63
61
54
44
66
77
49
53
12
11
12
17
3
44
30
71
5
35
6
15
7
12
12
9
4
3
66
26
SOURCE: MINTEL
Fragrance wearers more likely to use all product forms
Not surprisingly, consumers that report wearing fragrance are more likely to use all fragrance forms when
compared to total respondents. This is particularly true among wearers of EDP, EDT, and cologne. While
it stands to reason that consumers who are engaged in the category are more likely to experiment among
the various product forms, it also reinforces the idea that increasing usage occasions among current users
may be an easier proposition than trying to lure new users. Adding new forms and line extensions to
support traditional fragrance products can be a way for manufacturers to continually engage users and
potentially garner increased brand loyalty.
80
Fragrances
US, September 2012
FIGURE 43: FRAGRANCE USAGE, BY FRAGRANCE USAGE, MAY 2012
All
1,020
Perfume/
parfum
609
Eau de
parfum
366
Eau de
toilette
372
Eau de
cologne
328
Body
spray
594
%
%
%
%
%
%
Perfume/parfum
Eau de parfum
Eau de toilette
Eau de cologne
Body spray
Roll on perfume
Scented body lotion from a fragrance line
such as Chanel or a specialty retailer such
as Bath & Body Works or Victoria’s Secret
60
36
36
32
58
18
62
100
53
48
40
73
24
73
88
100
79
65
75
31
78
79
78
100
69
79
30
78
74
73
78
100
76
29
74
75
46
50
42
100
26
79
Scented body lotion from a lotion
manufacturer, such as Nivea or Vaseline
64
74
79
80
78
78
Scented body powder
30
79
36
86
44
89
43
89
49
88
39
91
Base: 1,020 female internet users aged 18+
SOURCE: MINTEL
Brand usage
Due to the extremely large number of brands in this category, it is nearly impossible to encompass all key
players and product categories. However, Bath & Body Works and Victoria’s Secret are the brands with
the highest reported usage. Not surprisingly, this is driven primarily by younger women who are more
likely to experiment with fragrance types and forms like body spray, lotion, and scented soap/shower gel.
Additionally, these retailers offer lower-price points, frequent promotions like buy two, get one free, and
the opportunity to get their favorite scents across a wide variety of products.
Among men, Calvin Klein, Ralph Lauren, and adidas are the brands with the highest reported usage.
Calvin Klein and Ralph Lauren both have a strong heritage in men’s fragrance with product offerings like
Obsession, Eternity, and Polo. Men likely get introduced to these brands at a young age and may remain
loyal to these brands through adulthood. However, as shown in the Leading Companies section, Ralph
Lauren is showing steep declines in FDMx channels, suggesting that men are looking for more
contemporary scents and forms or they are simply shopping for these fragrances at retailers outside of
FDMx channels. adidas is a lower-priced brand that offers fragrance, aftershave, and even skincare at an
affordable price and is showing modest sales growth in FDMx.
81
Fragrances
US, September 2012
FIGURE 44: BRANDS OF PERFUME, COLOGNE, AND TOILET WATER USED, BY GENDER, JANUARY 2011-MARCH 2012
“Please indicate the brands of perfume, cologne, or toilet water you use.”
Base: adults 18+ who use perfume, cologne, or toilet water
Bath & Body Works
Victoria’s Secret
Avon
Calvin Klein
Estée Lauder
Ralph Lauren
Chanel
Dolce & Gabanna
Giorgio Armani
adidas
Cool Water by Davidoff
Gucci
Tommy Hilfiger
All
13,371
%
Male
3,828
%
Female
9,543
%
21
16
11
11
9
8
7
7
6
5
5
5
5
5
3
7
20
1
13
3
8
11
12
10
8
10
29
22
13
6
12
6
9
6
3
2
3
4
3
SOURCE: MINTEL/EXPERIAN SIMMONS NCS/NHCS W INTER 2012 ADULT FULL YEAR—POP
82
Fragrance Usage by Type—Traditional Forms
Fragrances
US, September 2012
Key points

Traditional fragrance forms include perfume, eau de parfum, eau de toilette, and eau de cologne
and are often higher-priced items that are usually offered in a decorative spray bottle. Of these
products, perfume has the highest usage with 45% of respondents reporting to wear, with the
highest participation among women 18-34.

Usage drops significantly for all forms with both men and women aged 55+. However, the use of
EDT across all female age groups is a bit more consistent, potentially indicating women’s
preference for lighter scents, particularly as they get older.

More than a quarter of women aged 18-34 report wearing perfume every day; however, this
percentage drops to 16% for women in the 35-54 age range. As women in this age group are
likely to be married and balancing a career and family, fragrance may be seen as a lower
priority. Adding energizing or stress relief benefits could be attractive to this demographic and
potentially increase frequency of use.
Highest fragrance usage among men and women aged 18-34
Overall, with the exception of cologne and roll-on perfume, women are significantly more likely than men
to wear fragrance, and wear it more frequently. Usage is highest among young consumers with 76% of
women 18-34 wearing perfume, and 56% of men 18-34 wearing eau de cologne. While not terribly
surprising, this does reinforce the necessity of targeting these younger consumers with marketing and
advertising. However, even with higher reported usage, frequency of use remains relatively low. Of the
traditional forms, perfume has the highest reported daily wear while EDTs are significantly more likely to
be worn only occasionally. This is a bit surprising given that EDTs are less expensive than perfume and
are less “concentrated,” thus offering a lighter scent and making them more appropriate for daytime use.
However, consumers that wear EDTs may not be heavily scent-involved and only feel that scent is needed
for special occasions as opposed to perfume wearers who are highly engaged in the category and more
likely to feel “complete” when wearing a scent.
Interestingly, roll-on perfume is actually used significantly more by men (particularly young men, 18-34)
and men are more likely to wear roll-on perfume daily. While there are not many roll-on perfumes
targeted specifically for men, there are several unisex fragrances that offer a roll-on variety that could be
driving this trend. As mentioned in the Innovations and Innovators section, the number of unisex
fragrance launches has surged over the past year.
83
Fragrances
US, September 2012
FIGURE 45: FRAGRANCE USAGE—TRADITIONAL FORMS, BY GENDER AND AGE, MAY 2012
All
2,000
%
Male,
18-34
298
%
Male,
35-54
375
%
Male,
55+
307
%
Female,
18-34
319
%
Female,
35-54
381
%
Female,
55+
320
%
Perfume/parfum:
Any wear
Every day
Most, but not all, days of the week
A few days a week
Only occasionally
Only for special occasions
45
13
9
9
14
13
46
18
9
12
7
5
25
7
4
6
7
6
18
3
3
3
9
7
76
26
16
15
19
13
62
16
12
12
22
20
41
7
10
7
18
26
Eau de parfum:
Any wear
Every day
A few days a week
Only occasionally
29
4
7
6
11
8
36
7
15
9
5
4
20
2
6
5
7
5
11
1
2
2
6
6
39
8
7
9
14
8
39
5
8
8
18
13
29
2
4
6
17
15
Eau de toilette:
Any wear
Every day
A few days a week
Only occasionally
32
5
7
8
12
7
42
9
14
13
6
4
25
4
7
6
8
8
17
1
5
5
7
5
39
7
7
10
14
7
40
7
7
8
19
10
31
3
6
7
15
7
Eau de cologne:
Any wear
Every day
A few days a week
Only occasionally
37
6
8
8
14
10
56
10
19
14
13
12
42
11
8
6
17
12
26
3
6
6
11
9
23
3
5
7
8
5
31
4
5
7
15
9
42
5
8
8
21
8
Roll on perfume:
Any wear
Every day
A few days a week
Only occasionally
20
4
4
5
8
3
36
7
12
10
6
3
19
5
3
6
6
3
13
3
3
4
3
2
25
6
4
4
11
3
17
1
2
3
11
3
12
3
1
1
8
2
Base: internet users aged 18+
SOURCE: MINTEL
84
Fragrance Usage by Type—Line Extensions
Fragrances
US, September 2012
Key points

Line extensions include products that provide scent in alternate forms and frequently offer an
added benefit like cleansing or moisturizing. Scented soap/shower gel, scented lotion from a
mass retailer, and body spray are the most frequently used line extensions.

Except for body powder, product usage is driven by the youngest age segments among both men
and women. Use of body powder actually increases with age among women indicating an
opportunity to target that segment with additional body powder offerings.

Scented soap/shower gel has the highest reported usage with both men and women and also has
the highest reported daily use. Due to the strong functional benefits of these products, daily use
is not surprising. However, the idea of adding functional benefits is once again reinforced.
Lower-priced scented products lead the way
Functional products like lotion and scented soap/shower gel are the most used products although body
spray also continues to be popular. As seen with traditional fragrance forms, line extension products are
used significantly more by women. Body sprays offer a low risk, low cost option to experiment with
fragrance. Usage is highest among younger consumers, with 60% of men aged 18-34 and 71% of women
aged 18-34 reporting usage. Offerings from popular mass brands like Axe are certainly driving growth in
this category, particularly with young men. However, even more prestigious brands like Ralph Lauren are
starting to offer a range of lower-priced body sprays to support their fragrance lines and are presumably
attempting to target a younger audience (see Innovations and Innovators). Specialty beauty retailers like
Bath & Body Works and Victoria’s Secret also offer a wide variety of scented body sprays as well as
scented shower gels and lotions, which are particularly popular with young women.
These scented body care products offer benefits beyond fragrance such as cleansing and moisturizing and
could be seen as competition to the fine fragrance market (see Competitive Context). However, as interest
is considerably higher in these line extension items, opportunities exist for fragrance manufacturers to
extend their fragrance into other product categories.
85
Fragrances
US, September 2012
FIGURE 46: FRAGRANCE USAGE—LINE EXTENSIONS, BY GENDER AND AGE, MAY 2012
All
2,000
%
Male,
18-34
298
%
Male,
35-54
375
%
Male,
55+
307
%
Female,
18-34
319
%
Female,
35-54
381
%
Female,
55+
320
%
Body spray:
Any wear
Every day
A few days a week
Only occasionally
50
12
11
12
15
7
60
15
18
16
11
8
37
10
8
8
12
8
26
6
6
7
9
6
71
20
15
16
20
7
64
17
12
14
20
5
38
6
5
9
18
6
Scented body lotion from a high
end or specialty retailer:
Any wear
Every day
A few days a week
Only occasionally
45
8
10
11
17
6
44
5
14
14
11
4
26
4
6
6
10
3
16
2
5
3
7
4
73
19
14
16
24
8
65
14
14
15
23
6
45
6
7
8
25
9
Scented body lotion from a mass
lotion manufacturer:
Any wear
Every day
A few days a week
Only occasionally
53
12
11
12
17
3
55
12
15
15
12
5
39
7
7
12
13
4
29
4
7
8
10
3
70
22
14
15
18
4
67
16
14
13
24
1
56
13
11
12
21
3
Scented body powder:
Any wear
Every day
A few days a week
Only occasionally
30
5
6
7
12
4
40
6
13
12
9
5
26
4
7
6
9
3
25
5
5
6
9
3
25
8
5
4
8
5
32
5
6
7
14
3
32
5
4
5
18
4
Scented soap/shower gel:
Any wear
Every day
A few days a week
Only occasionally
71
35
15
12
9
3
72
32
15
13
12
5
66
31
15
13
7
3
48
17
11
11
8
3
85
49
20
12
5
2
83
44
17
11
12
1
70
33
15
10
12
2
SOURCE: MINTEL
86
Fragrances
US, September 2012
Aftershave more likely to be worn every day by older men
Use of all product segments drops significantly among men aged 55+ with the exception of aftershave.
Use of aftershave remains pretty consistent with men across all age groups and is actually more likely to
be worn every day among the male Baby Boomers. This could be due to a grooming routine that was
learned early on, prior to the existence of the expansive range of male grooming products that are
available today.
However, with the growing popularity of men’s grooming products and higher participation of young men
in categories like skincare, the time could be right to “reintroduce” them to the benefits of aftershave.
While potentially thought of as a product for older men, promoting the benefits of using aftershave in
order to soothe and protect skin could be a way to engage the younger consumer. The idea of highlighting
skin benefits into a category that may be perceived as lacking innovation could be what the category needs
in order to engage men of all ages.
FIGURE 47: AFTERSHAVE USAGE, BY MALE AND AGE, MAY 2012
Base: male internet users aged 18+
Aftershave:
Any wear
Every day
A few days a week
Only occasionally
All
980
%
Male, 18-34
298
%
Male, 35-54
375
%
Male, 55+
307
%
56
11
13
17
16
7
59
7
16
20
16
7
54
9
11
17
17
6
55
15
13
13
14
7
SOURCE: MINTEL
Old Spice most popular aftershave or cologne brand with men
Old Spice leads the way with 20% of men claiming to use the brand with Axe close behind at 17%. Given
the explosive growth of both of these brands in mass retail, driven by successful advertising and social
media campaigns and a wide range of scent offerings across a variety of products, high usage is not
surprising. However, keeping men engaged as they age could pose a challenge to some of these brands,
particularly those that skew young. Also, while an aftershave isn’t necessarily right for every brand, the
idea of promoting skincare benefits in products beyond just fragrance could be interesting. Although a
relatively new player in the men’s segment, Dove Men+Care is a line of cleansing products and deodorant
promoting “skin care built in” and is seeing some success in the category. As male specific products
continue to proliferate in both the mass and prestige markets, product innovation appears to be a big
opportunity.
87
Fragrances
US, September 2012
FIGURE 48: BRANDS OF AFTERSHAVE LOTION OR COLOGNE USED, AMONG MEN, JANUARY 2011-MARCH 2012
“Please indicate the brands of aftershave lotion or cologne you use.”
Base: 5,566 male aged 18+ who use aftershave lotion or cologne
Male
%
Old Spice
Axe
Calvin Klein
Gillette
Ralph Lauren
Brut
adidas
Aqua Velva
Cool Water
Giorgio Armani
Nautica
Drakkar Noir
20
17
10
10
9
8
7
7
7
6
6
5
88
Trying a New Fragrance
Fragrances
US, September 2012
Key points

Smelling on another person is the most common way consumers are learning about fragrance.
This is partially driven by the fact that consumers are passively receiving fragrances since they
are exposed to a variety of scents worn on other people. However, some consumers may think
that smelling on a person provides a truer perception of the fragrance than smelling on a paper
sample.

Both men and women aged 55+ are more likely to purchase a scent they are already familiar
with.

Visiting a retailer is the most popular way respondents are trying fragrances—whether it’s on a
paper sample or on them.
Smelling is the most frequent method for learning about fragrance
Experiencing a scent is the best way for consumers to learn about a new fragrance and gauge their
potential interest in trying and ultimately making a purchase. Interestingly, consumers are more likely to
learn about a fragrance by smelling it on another person compared to smelling it in a magazine sample.
While sampling is a heavy influencer in other categories such as color cosmetics with 81% of women
reporting to be influenced by a free sample (see Mintel’s Color Cosmetics—U.S., July 2012), only 28% of
women report learning about a fragrance by smelling it in a magazine (see Appendix).This suggests that
consumers think that smelling on a person provides a better perception of how the fragrance actually
smells as compared to a paper or magazine sample. Strategically placed “scent wearers” could spread the
word (or smell) in popular venues or events in order to create buzz around a new fragrance launch. As
product sampling campaigns are getting more creative and more targeted (like beauty subscription boxes),
exposing consumers to fragrances in creative ways allows them to experience the fragrance and create a
positive association between the fragrance and the event or venue where they first smelled the fragrance.
Word of mouth popular with young men
Hearing about a fragrance/word of mouth is also an effective way to reach consumers, particularly with
young men aged 18-34. This age group likes to feel “in the know” without feeling overtly advertised to.
The opportunity to use social media to create “buzz” and a successful word of mouth campaign is likely to
be particularly effective with this demographic. The success of Axe and Old Spice illustrates this point –
showing that even large brands with big budgets can create “buzz.”
89
Fragrances
US, September 2012
FIGURE 49: STEPS TAKEN BEFORE TRYING A NEW FRAGRANCE—LEARNING ABOUT A SCENT, BY GENDER AND AGE, MAY 2012
“Thinking about the last fragrance you bought, which of the following steps did you take before
purchasing?”
All
1,529
Male,
18-34
243
Male,
35-54
265
Male,
55+
202
Female,
18-34
278
Female,
35-54
311
Female,
55+
230
%
%
%
%
%
%
%
Learning about the scent:
Smelled it (net)
Smelled it on a person
Smelled it in a magazine sample
51
35
27
57
44
32
51
35
26
36
25
17
65
47
33
52
32
27
39
24
21
Heard about it (net)
Heard about it from a friend
Read about it in a magazine
25
18
10
45
34
18
25
19
10
19
11
8
27
20
11
18
13
8
13
10
3
Company promotions (net)
Received a sample from a
sampling box company
Approached by a salesperson in a
store
27
17
35
23
28
17
20
12
29
19
27
18
23
11
14
19
14
11
16
13
13
Was purchasing a scent I was
already familiar with
39
24
35
49
35
43
51
Other
6
5
6
8
5
6
8
who wear fragrances
SOURCE: MINTEL
Visiting retailers is the most popular way to try fragrances
Fragrance wearers are most likely to visit retailers when they want to try a fragrance with sampling on
themselves edging out trying on paper. This is consistent with findings regarding how they learn about
fragrance, with respondents preferring to smell on a person when compared to smelling in a magazine.
Men and women are nearly equally as likely to visit retailers, with the youngest groups being the most
engaged in trying and participating in the category.
90
Fragrances
US, September 2012
FIGURE 50: STEPS TAKEN BEFORE TRYING A NEW FRAGRANCE—TRYING A SCENT, BY GENDER AND AGE, MAY 2012
purchasing?”
All
1,529
Male,
18-34
243
Male,
35-54
265
Male,
55+
202
Female,
18-34
278
Female,
35-54
311
Female,
55+
230
%
%
%
%
%
%
%
48
26
58
34
47
22
37
19
56
34
47
26
41
18
34
36
35
26
41
33
32
Used a magazine sample to try out
the scent on me
Purchased a small sample size/trial
size
Other
27
28
23
18
32
30
24
16
17
15
14
17
17
13
3
-
3
3
1
3
5
None
27
23
33
40
17
24
32
Base: internet users aged 18+ who
wear fragrances
Trial :
Visited a retailer (net)
Visited a retailer to get a live trial of
the scent—on a paper/sample stick
Visited a retailer to get a live trial of
the scent—on me
SOURCE: MINTEL
91
Purchase Locations
Fragrances
US, September 2012
Purchase Locations
Key points

Drug stores are the most popular location to buy fragrances, closely followed by specialty
retailers.

Specialty retailers also have a strong online presence with 12% of respondents reporting making
fragrance purchases through this outlet.

Men are making the majority of fragrance purchases at FDMx channels compared to women
who are purchasing at more specialty and premium retailers.
Drug stores most popular purchase location, but losing ground to other
channels
Drug stores and specialty retailers are the top two destinations for purchasing fragrances. While drug
stores continue to expand beauty offerings as well as create a more inviting shopping experience that has
not translated into sales gains as a fragrance retailer (see Retail Channels). However, as drug stores are
more popular with men, the idea of catering to them by focusing more on men’s fragrances through
increased displays and product selection will ultimately create a more “male destination” shopping
experience. Additionally, mass merchandisers are another outlet to keep an eye on. With the expansion of
beauty offerings and the introduction of a “beauty concierge” service at Target, these retailers are clearly
pushing to make themselves a leader in the beauty category.
After online-only retailers, specialty retailers have the strongest online presence. Since these retailers are
considered beauty destinations and often offer a larger product selection than other retailers, it would
make sense that they would be a “go to” destination online. As drug stores and mass merchandisers look to
build their in-store beauty presence, creating a virtual beauty department online could be beneficial. While
these retailers generally don’t offer the large selection of “hard to find” products that are found at specialty
retailers, perhaps creating collaborative beauty lines exclusive to the retailer could create that
“exclusivity” buzz. Target has had much success with this collaboration concept in apparel, illustrated by
its partnership with fashion house Missoni that created a frenzy that led to the crashing of the Target
website and made national news.
92
Purchase Locations
Fragrances
US, September 2012
FIGURE 51: FRAGRANCE PURCHASE LOCATIONS, MAY 2012
“Where do you buy fragrances?”
Base: 1,529 internet users aged 18+ who wear fragrances
Drug store
Specialty retailer like Victoria’s Secret or Bath & Body
Works
Macy’s or other mid-range department store
Mass merchandiser
JCPenney, Sears, or other value-priced department store
Supermarket
TJMaxx, Marshalls, or other discount retailer
Online retailer, like Amazon.com
Bloomingdale’s or other high end department store
Sephora
Clothing store, such as Gap
Fragrance-only retailer, such as Perfumania
Ulta
Duty-free shop
TV retailer, like QCV or HSN (please select “in a store”
option for this if purchased via telephone)
Any
purchase
%
In a
store
%
Online
%
I don't purchase
from here
%
60
59
57
54
5
12
40
41
56
55
44
43
40
27
26
26
25
21
19
16
52
52
41
40
37
23
20
23
18
17
15
9
8
8
9
5
5
32
7
9
7
9
5
5
9
44
45
56
57
60
62
73
74
74
75
79
81
84
SOURCE: MINTEL
Specialty retailers most popular with young women; men more likely to
shop at department stores
Drug stores may be the retailer of choice for most, but 86% of women aged 18-34 have purchased a
fragrance at a specialty retailer. Considering the popularity of Bath & Body Works and Victoria’s Secret
with this demographic, this purchase behavior is not that surprising. However, older women are less likely
to purchase at these retailers, with only 48% of women aged 55+ making fragrance purchases at specialty
retailers. We could begin to see a shift in purchasing behavior since specialty retailers are a relative
newcomer to retail so while older women may not be as familiar with these stores, as younger women age,
these types of retailers will more likely be in their consideration set. These declines in purchase behavior
are also due to older women being less engaged in the category overall. However, there may be an
opportunity to offer scented products that are more appealing to women as they move through various life
stages, with offerings like fragrances with stress relief benefits for busy moms or anti-aging benefits for
women in the 55+ age group. Additionally, specialty retailers could create dedicated zones in store to
appeal to women of different ages that are looking for a slightly different shopping experience, helping to
guide women to the area of the store right for their current life stage need.
93
Purchase Locations
Fragrances
US, September 2012
While drug stores and mass merchandisers are popular with young men, department stores are actually
more popular with men than women. Department stores are a traditional retailer for higher end brands like
Ralph Lauren and Calvin Klein, and men may be more comfortable shopping in this retail environment
compared to specialty retailers like Bath & Body Works, which clearly cater to women. As department
stores continue to face increased competition from specialty retailers and beauty retailers like Sephora
they may have an opportunity to make themselves a destination for men seeking products “for them” in an
environment that is more “man cave” and less girly. Nordstrom has adopted this approach to some degree
by offering comfortable couches and TVs playing sports in its male targeted departments.
FIGURE 52: FRAGRANCE PURCHASE LOCATIONS, BY GENDER AND AGE, MAY 2012
All
1,529
Male,
18-34
243
Male,
35-54
265
Male,
55+
202
Female,
18-34
278
Female,
35-54
311
Female,
55+
230
%
%
%
%
%
%
%
Drug store:
Any purchase
In a store
Online
60
57
5
68
58
13
66
64
5
65
64
3
60
59
4
51
50
3
50
49
2
Specialty retailer like Victoria’s
Secret or Bath & Body Works:
Any purchase
In a store
Online
59
54
12
56
45
18
49
45
10
31
30
1
86
82
20
71
67
12
48
45
6
Macy’s or other mid-range
department store:
Any purchase
In a store
Online
56
52
8
68
53
24
56
52
8
48
47
1
59
56
8
53
50
6
53
51
2
Mass merchandiser:
Any purchase
In a store
Online
55
52
8
65
56
18
62
57
8
54
52
2
57
54
9
47
46
5
49
47
3
JCPenney, Sears, or other valuepriced department store:
Any purchase
In a store
Online
44
41
9
64
53
19
50
46
10
44
43
1
46
43
10
33
31
6
31
30
2
Supermarket:
Any purchase
In a store
Online
43
40
5
69
59
15
49
46
5
50
50
0
50
47
5
25
23
2
20
20
1
wear fragrances
94
Purchase Locations
Fragrances
US, September 2012
TJMaxx, Marshalls, or other
discount retailer:
Any purchase
In a store
Online
40
37
5
50
38
14
43
40
5
32
32
1
48
45
5
36
33
3
32
31
1
Online retailer, like Amazon.com:
Online
32
50
37
21
35
29
19
Bloomingdale’s or other high end
department store:
Any purchase
In a store
Online
27
23
7
42
31
17
31
25
8
20
19
1
23
19
6
27
24
6
19
18
1
Sephora:
Any purchase
In a store
Online
26
20
9
32
20
15
20
14
8
10
9
1
40
32
15
32
27
10
15
13
3
Clothing store, such as Gap:
Any purchase
In a store
Online
26
23
7
51
40
20
31
28
9
17
16
0
29
28
7
19
17
4
10
9
1
Fragrance-only retailer, such as
Perfumania:
Any purchase
In a store
Online
25
18
9
40
27
18
26
18
10
13
9
5
27
19
9
24
17
8
17
12
7
Ulta:
Any purchase
In a store
Online
21
17
5
31
19
14
15
11
5
8
8
0
27
22
8
23
22
3
14
14
1
Duty-free shop:
Any purchase
In a store
Online
19
15
5
35
23
14
22
20
6
14
13
2
15
10
6
14
14
1
13
13
0
TV retailer, like QCV or HSN
(please select “in a store” option
for this if purchased via
telephone):
Any purchase
In a store
Online
16
9
9
34
18
18
15
11
8
13
7
7
14
8
8
14
6
10
9
4
5
SOURCE: MINTEL
95
Attitudes toward Wearing Fragrance
Fragrances
US, September 2012
Key points

Women are more likely to alternate between a few scents when compared to men, with 61% of
women aged 35-54 agreeing to this behavior. Knowing that consumers alternate scents,
providing trial sizes or sample packs that target different usage occasions (day, evening, special)
could keep consumers engaged and help them create a “suite” of fragrances that meet their
needs.

Younger respondents are more likely to feel confident and express themselves when wearing
fragrance, but are also more likely to express difficulty in knowing which fragrance suits them.
Creative sampling, both in store and virtually, could help guide these consumers through the
fragrance research and purchasing processes, resulting in a less confused and hopefully more
loyal user.

Older women are the most likely to save expensive fragrances for special occasions and also the
most likely to always wear their signature fragrance. Adding benefits to fragrances like mood
boosting or stress relief could encourage more frequent usage with these consumers.
Nearly half of fragrance wearers like to alternate between scents
Alternating between favorite scents is more popular with women, although it remains fairly consistent
across age groups. However, among men, the two older male groups are actually more likely than their
younger male counterparts to exhibit this behavior. Older respondents are less likely to experiment with
different scents when compared to the younger age group suggesting that while consumers have a set of
favorite fragrances they alternate between, experimenting with completely new scents becomes less
popular with age.
More than a third of men aged 18-34 and more than half of women aged 18-34 report feeling more
confident when wearing fragrance and are also more likely to use fragrance as a way to express their
personality. However, these respondents are also the most likely to express difficulty in finding a
fragrance that suits them. Having a signature fragrance becomes more popular with age, indicating an
increased confidence in identifying scents that suit you as get older. Helping these younger consumers find
a fragrance or suite of fragrances that suits them could be the key in engaging and ultimately maintaining a
loyal brand user.
96
Fragrances
US, September 2012
FIGURE 53: ATTITUDES TOWARD WEARING FRAGRANCES, BY GENDER AND AGE, MAY 2012
“Thinking now about your attitudes toward wearing fragrance, which, if any, of the following
statements do you agree with?”
All
Base: internet users aged 18+ who wear
fragrances
I alternate between a few favorite scents
I feel more confident when I wear
fragrance
I wear different fragrance scents for
different occasions
I save my more expensive fragrance
products for special occasions only
I use fragrance to express my personality
I like to experiment with different scents
I never leave the house without wearing
fragrance
I always wear my signature fragrance
I change my fragrance based on the
season
I find it difficult to know which fragrance
suits me
I like to buy the latest fragrance launches
I’ve yet to find a scent I really like
None of the above
1,529
Male,
18-34
243
Male,
35-54
265
Male,
55+
202
Female,
18-34
278
Female,
35-54
311
Female,
55+
230
%
%
%
%
%
%
%
48
40
33
38
39
34
39
25
59
51
61
45
52
39
34
29
30
20
42
42
32
31
26
26
28
35
32
40
28
28
26
30
29
21
21
29
17
15
16
19
36
42
28
33
29
31
29
21
35
22
16
21
19
20
9
20
7
21
20
21
19
30
20
12
17
15
7
14
11
6
9
8
9
16
12
9
10
11
13
5
3
29
10
12
2
8
6
3
3
4
6
SOURCE: MINTEL
97
Fragrance Preferences
Fragrances
US, September 2012
Key points

Celebrity and fashion designer fragrances are the most popular with young women, while classic
scents are preferred by women aged 55+. This is consistent with previous findings suggesting
that younger women are more likely to experiment with different scents while older women are
more likely to wear a signature fragrance.

Expanding classic scents into product forms preferred by older women, like scented body
powder, could be a way to successfully extend scent across a line.

On the contrary, expanding celebrity and fashion designer scents into forms preferred by
younger women, like scented shower gels and body sprays, strategically targets the brand’s key
consumer.
Young women most overwhelmed by fragrance choices
Some 34% of female fragrance wearers aged 18-34 compared to 28% of total fragrance wearers think the
choice of fragrances in stores is overwhelming. Younger female fragrance wearers are also more likely to
be intimidated by fragrance counters/consultants. So while these young women are more likely to
experiment with scent, they are also looking for sources of information that are relatable when shopping
for a new scent. Since the “behind the counter” expert typically seen at department stores can be perceived
as intimidating, retailers may want to try creating “virtual” fragrance counters with tablet computers to
help guide these young women through the fragrance selection process in a high-tech way. The tablet
could have a “quiz” or survey that helps pinpoint the consumer’s likes and dislikes along with some
general lifestyle attitudes in order to create a personalized fragrance recommendation. This could also be a
useful online tool for guiding consumers through the fragrance buying process.
98
Fragrances
US, September 2012
FIGURE 54: FRAGRANCE PREFERENCES, BY GENDER AND AGE, MAY 2012
“Still thinking about your attitudes toward fragrances, which, if any, of the following statements
do you agree with?”
All
fragrances
The choice of fragrance in stores can be
overwhelming
Fine fragrances are a luxury that I buy
only occasionally
I buy new fragrances on impulse, when I
smell something I like
I wear classic scents, such as Chanel
No. 5, Obsession, etc.
I wear fashion designer fragrances, such
as Dior, Jimmy Choo, Armani, Chloé, etc.
I prefer to wear scents with matching
body lotions
I only buy online if I’m replacing a product
I already know I like
I am willing to spend more money on a
fragrance if it comes with an
accompanying lotion
I am willing to spend more money on a
fragrance if it comes with an
accompanying travel size sample
I find fragrance counters/consultants
intimidating
I wear celebrity fragrances, such as
Justin Bieber Someday, Curious (Britney
Spears), etc.
None of the above
1,529
Male,
18-34
243
Male,
35-54
265
Male,
55+
202
Female
, 18-34
278
Female
, 35-54
311
Female
, 55+
230
%
%
%
%
%
%
%
28
26
24
17
34
31
30
27
20
20
23
31
31
35
27
30
25
20
32
32
20
24
19
19
16
22
25
41
20
21
23
11
28
19
14
20
16
15
8
32
24
21
19
18
12
10
27
24
17
17
17
16
7
26
18
16
14
14
12
12
19
14
11
12
14
14
7
18
9
9
8
12
5
1
18
8
3
17
15
23
40
6
9
14
SOURCE: MINTEL
Income impacts fragrance preferences
Higher income groups prefer classic scent and fashion designer scents while lower income groups prefer
celebrity scents and scents with a matching lotion. This isn’t terribly surprising since classic scents and
fashion designer scents tend to be higher-priced when compared to celebrity scents. Additionally,
signature scents are preferred by older consumers, who tend to be in higher income brackets as compared
to younger consumers, who tend to be in lower income brackets and prefer celebrity scents. It is
interesting to see that lower income groups prefer scents with a matching body lotion. Scented lotions
provide scent and moisture at a lower-price that offers value. Additionally, since lotion provides scent,
consumers may not feel like they need to wear as much perfume (or wear it as frequently), essentially
extending the life of their perfume. This again reinforces the idea that line extensions like scented body
lotions offer consumers a lower-priced option to wear their favorite scent and are particularly appealing to
consumers who are on a tighter budget.
99
Fragrances
US, September 2012
However, while income may impact the types of fragrances consumers purchase, consumers across all
income brackets express fairly equal levels of feeling overwhelmed by the choice of fragrances. As
mentioned previously in this section, opportunities to guide consumers through the fragrance selection
process exist. In FDMx channels, there is often little to no guidance to help consumers, which is why
Target is testing a beauty concierge service in Chicago in an effort to help consumers through the beauty
product selection process. While specialty beauty stores usually have “beauty consultants,” creating a less
intimidating, yet still interactive, service to guide consumers could be beneficial.
FIGURE 55: FRAGRANCE PREFERENCES, BY HOUSEHOLD INCOME, MAY 2012
wear fragrances
The choice of fragrance in stores
can be overwhelming
Fine fragrances are a luxury that I
buy only occasionally
I buy new fragrances on impulse,
when I smell something I like
I wear classic scents, such as
Chanel No. 5, Obsession, etc.
I wear fashion designer fragrances,
such as Dior, Jimmy Choo, Armani,
Chloé, etc.
I prefer to wear scents with
matching body lotions
I only buy online if I’m replacing a
product I already know I like
I am willing to spend more money
on a fragrance if it comes with an
accompanying lotion
I am willing to spend more money
on a fragrance if it comes with an
accompanying travel size sample
I find fragrance
counters/consultants intimidating
I wear celebrity fragrances, such as
Justin Bieber Someday, Curious
(Britney Spears), etc.
None of the above
All
<$25K
$50K74.9K
286
$75K99.9K
243
$100K149.9K
295
$150K+
271
$25K49.9K
317
1,529
%
%
%
%
%
%
%
28
29
25
25
33
26
31
27
33
27
24
29
23
25
27
30
28
26
31
21
27
24
21
24
19
23
27
33
20
19
20
18
21
19
25
20
25
23
18
19
15
19
19
13
17
17
22
23
22
17
20
19
16
20
10
22
14
14
13
14
13
14
17
12
7
8
14
19
12
15
8
10
8
9
9
6
8
17
21
18
18
12
17
15
117
SOURCE: MINTEL
100
Interest in Product Innovations—Properties
Fragrances
US, September 2012
Key points

The majority of fragrance wearers express interest in fragrances that offer added benefit
properties, with three quarters of respondents reporting some interest in fragrances that are
mood boosting or stress relieving.

Young men express the greatest likelihood of interest in fragrances that are antibacterial.

Women aged 35-54 are more likely to be interested in fragrances with anti-aging properties.
Added benefit fragrances could generate increased usage occasions
While many consumers report wearing fine fragrance, frequency of use is primarily “only occasionally” or
“only on special occasions.” The usage frequency of scented body care products is much higher since
these products are lower-priced as well as offering added skincare benefits. High consumer interest
reported for a variety of different properties points to the opportunity to add benefits to fine fragrance.
Adding benefits not only improve the perceived value of the product to the consumer, it likely increases
usage frequency, making this proposition a win-win for both consumers and manufacturers. As mentioned
throughout this report, particularly in Trend Applications, consumers are looking to get more value and
more benefits from a wide range of products. Multifunctionality is almost becoming a “must have” in the
beauty industry, and the fragrance category is no exception. According to Mintel’s exclusive consumer
survey, the highest consumer interest is expressed in fragrances that are mood boosting or stress relieving.
The concept of aromatherapy is not new (particularly in scented body care products), but offering fine
fragrances with ingredients “proven” to affect mood or overall emotional wellbeing could take these
products to the next level. This concept is best illustrated by the growing popularity of “energy shots” or
“mood boosters” in the beverage and supplement industries and the opportunity to expand this idea to the
fragrance industry is certainly compelling.
Nature's Answer Natural Green Tea Energy Shot with yerba mate has been
repackaged. The product contains organic green tea with no artificial sweeteners,
colors, or flavors. It is said to energize in minutes, is mixed berry flavored, and
retails in a 2-fl. oz. pack.
SOURCE: MINTEL GNPD
101
Fragrances
US, September 2012
FIGURE 56: INTEREST IN PRODUCT INNOVATIONS—PROPERTIES—ANY INTERESTED, BY GENDER AND AGE, MAY 2012
All
wear fragrances
Properties:
Fragrances that are mood
enhancing/mood boosting
Fragrances with stress relieving
properties
Fragrances that provide an energy
boost/pick me up
Fragrances that have anti-aging
properties
Fragrances that are antibacterial
Fragrances that have appetitesuppressing properties
1,529
Male,
18-34
243
Male,
35-54
265
Male,
55+
202
Female
, 18-34
278
Female
, 35-54
311
Female
, 55+
230
%
%
%
%
%
%
%
76
81
77
52
87
86
66
74
79
71
49
88
82
63
69
79
68
45
80
77
60
63
64
63
54
63
69
60
60
50
74
58
66
50
58
28
65
60
55
55
43
39
SOURCE: MINTEL
102
Interest in Product Innovations—Forms
Fragrances
US, September 2012
Key points

Interest in innovative product forms is highest among young men, with half of male fragrance
wearers aged 18-34 expressing interest in a fragrance pill or fragranced chewing gum.

While not for everybody, engaging the younger consumer with these innovative forms could be
instrumental in capturing the attention of this highly engaged, albeit less loyal consumer.

Consumers are most likely to learn about fragrance by smelling them on other people (see
Trying a New Fragrance), so fragrance forms that emit fragrance could be an interesting way to
create interest, particularly among men.
Innovative product forms provide creative sampling opportunities
Consumers are most likely to learn about a fragrance by smelling it on other people, so creative ways to
“sample” fragrance could be a great way to spread the word about new product launches. This idea could
be particularly appealing to younger consumers who are more likely to experiment with scent and want to
be engaged without necessarily feeling “advertised” to. Using temporary tattoos as giveaways at concerts,
outdoor events, and even popular urban areas, provides fragrance manufacturers with an innovative way to
sample fragrance while creating buzz. Additionally, temporary tattoos provide a co-branding opportunity
for cross category promotions. For example, a retailer that sells multiple product categories could
advertise a product on its tattoo while infusing the tattoo with one of its top-selling (or new) fragrances.
FIGURE 57: INTEREST IN PRODUCT INNOVATIONS—FORMS—ANY INTERESTED, BY GENDER AND AGE, MAY 2012
All
wear fragrances
Forms:
A pill you could swallow that emitted
fragrance through your pores
A chewing gum that emitted fragrance
A temporary tattoo/body art that
included fragrance
Male,
18-34
243
Male,
35-54
265
Male,
55+
202
Female
, 18-34
278
Female
, 35-54
311
Female
, 55+
230
%
%
%
%
%
%
29
50
37
22
32
24
7
26
21
51
44
32
23
18
6
28
26
18
19
9
4
1,52
9
%
SOURCE: MINTEL
103
Fragrances
US, September 2012
Young men express the highest interest in innovative product forms
Young men express a higher than average interest in innovative product forms, with 19% of men aged 1834 responding “very interested” to the idea of a fragrance pill, 18% to a chewing gum, and 14% to a
temporary tattoo. As previously mentioned, these product forms provide innovative sampling
opportunities as well as opportunities to leverage popular young men’s fragrances into line extension
products. Brands like Axe, which have high participation among young men, could extend fragrances into
creative line extensions to help keep this young and less loyal consumer engaged in the category.
Additionally, these brands could offer a fragrance gum or temporary tattoo on-pack as a way to promote a
new fragrance launch.
FIGURE 58: INTEREST IN PRODUCT INNOVATIONS—FORMS—VERY INTERESTED, BY MALE AND AGE, MAY 2012
Male
Forms:
A pill you could swallow that emitted fragrance through your pores
A temporary tattoo/body art that included fragrance
710
%
Male,
18-34
243
%
Male,
35-54
265
%
Male,
55+
202
%
12
11
8
19
18
14
11
10
8
6
3
1
SOURCE: MINTEL
104
Interest in Product Innovations—Scent Extensions
Fragrances
US, September 2012
Interest in Product Innovations—Scent Extensions
Key points

Scent extensions generate high interest with young consumers, which is consistent with previous
findings (see Fragrance Usage) suggesting higher usage of line extension products like scented
soap/shower gel and scented lotion. Extending scent into other product categories can further
engage these young consumers with lower-priced items and the opportunity to experience their
favorite scents in a variety of ways.

The majority of fragrance wearers express interest in scented candles, though air fresheners and
laundry products also show considerable opportunity among both men and women.
Scent extensions create opportunity for lower-priced, value added items
Scented household and laundry products are not a new concept, with both mass and prestige brands
offering a range of scents available in a variety of products including candles, detergents, and laundry
products. However, as mentioned in both Trend Applications and Competitive Context, extending popular
fine fragrances into household products as well as co-branding could create opportunities in categories
typically seen as competition for fine fragrance. Mass brands like Tide and Old Spice (both P&G) could
easily partner by creating Old Spice fragrance pods that could be added to Tide detergent for a burst of
fragrance when the consumer wanted it. Premium fragrance brands also have the opportunity to co-brand
with higher end household products like Caldrea, which offers high quality products available in a variety
of unique scents like Ginger Pomelo and Basil Blue Sage. Since Caldrea is not afraid to push the envelope
with creative scents by offering variants typically not seen in mass, partnering with premium fragrance
brands could be a good fit for consumers looking for unique and high quality products.
FIGURE 59: INTEREST IN PRODUCT INNOVATIONS—SCENT EXTENSIONS—ANY INTERESTED, BY GENDER AND AGE, MAY 2012
All
wear fragrances
Scent extensions:
Scented candles that smell the same
as my favorite fragrance
Air fresheners that smell the same as
my favorite fragrance
Dryer sheets that smell the same as
Laundry detergents that smell the
same as my favorite fragrance
1,529
Male,
18-34
243
Male,
35-54
265
Male,
55+
202
Female,
18-34
278
Female,
35-54
311
Female,
55+
230
%
%
%
%
%
%
%
65
74
65
39
77
72
52
62
74
63
41
73
67
43
60
72
64
44
74
59
42
58
73
65
41
75
57
32
SOURCE: MINTEL
105
Attitudes toward Fragrance Packaging
Fragrances
US, September 2012
Key points

Among those who wear fragrances, half of young women agree that they would be interested in
purchasing product refills in order to save money, and nearly half would be interested in
product refills in order to cut down on waste.

Women aged 55+ are the most likely to keep perfume bottles on display indicating an
opportunity to create special editions of classic scents like Chanel No. 5 in high quality bottles
that are worthy of display.

Color of packaging or product is of relatively low importance though young men do express a
higher than average interest in these attributes.
Product refills improve value perception and support conservation
Among those who wear fragrances, young women aged 18-34 express the highest interest in product
refills with 50% showing interest in order to save money, and 45% in order to cut down on waste. Since
this younger consumer is also most likely to be interested in celebrity scents and the most interested in
experimenting with scent, this could be an opportunity to create a refill “pack” offering three of the topselling celebrity scents with one reusable bottle. Providing value while still letting consumers experiment
could keep them engaged while helping them save money and feel like they are making a positive impact
on the environment.
Packaging and product color can help support benefits
While product and package color don’t garner a high level of importance among consumers, consumers
may be impacted by packaging more than they think. Tying packaging and product color to a specific
benefit or trend could be a subtle way to communicate the scent and even product efficacy before the
consumer smells the product. According to osmoz.com, “nude” or “skin tone” bottles are the latest trend in
fragrance packaging this season, which aligns with trends in fashion and makeup. Not only do nude and
blush colors follow larger trends, they also communicate the type of scent in the bottle. Fragrances with
added benefits (like anti-aging) have strong consumer interest and using nude tones on the package can
help reinforce the idea that a fragrance is good for your skin. Using color as a way to communicate the
“story” of a fragrance helps to engage all of the consumer’s senses (see Insights and Opportunities),
offering a complete experience beyond just smelling good.
106
Fragrances
US, September 2012
FIGURE 60: ATTITUDES TOWARD FRAGRANCE PACKAGING, BY GENDER AND AGE, MAY 2012
“Please indicate which of the following statements about fragrance packaging you agree with.”
All
wear fragrances
I would be interested in purchasing
product refills for my
perfume/cologne bottles to save
money
I keep my perfume/cologne bottles
on display
I would be interested in purchasing
product refills for my
perfume/cologne bottles to cut
down on waste
I would like to see more
perfumes/colognes in nonbreakable bottles
I keep my body spray bottles on
display
I would like to see more
perfumes/colognes in lighter weight
bottles
I would like to see more rollerball
applicators for perfume/cologne
Only cheap perfumes/colognes
come in plastic bottles
The color of the perfume/cologne
bottle is important to me
The color of the perfume/cologne
liquid is important to me
None of the above
1,529
Male,
18-34
243
Male,
35-54
265
Male,
55+
202
Female,
18-34
278
Female,
35-54
311
Female,
55+
230
%
%
%
%
%
%
%
35
33
31
21
50
35
37
32
28
23
20
39
37
45
32
26
28
16
45
33
38
22
27
20
14
32
22
17
20
21
15
7
32
23
19
16
18
13
9
22
18
14
13
15
12
9
14
13
13
11
15
11
7
17
8
9
9
16
8
4
14
7
4
8
14
8
3
11
6
3
25
19
29
50
10
23
23
SOURCE: MINTEL
107
Scent Preference
Fragrances
US, September 2012
Scent Preference
Key points

Scents that are considered fresh are the most likely to be preferred by those who wear
fragrances. However, due to the wide range of available scents and limited vocabulary
consumers have when describing fragrance, it’s difficult to gauge what fresh actually means to
consumers.

Young female fragrance wearers are most likely to prefer fruity and food related scents, which
is not surprising considering the large selection of fruity and food type scents available at
retailers like Bath & Body Works, which are especially popular with this consumer.

Men are most likely to prefer musk or woody scents.
Fresh scents most popular with all respondents
While fragrance wearers have claimed a preference for fresh scents, it’s difficult to interpret what
freshness means due to the very limited fragrance vocabulary consumers have as well as the fact that
consumers didn’t actually smell fragrances when taking this survey. However, the fact that fresh is a
popular term to describe fragrances suggests an opportunity to market fragrances as fresh. Fresh also can
be perceived as meaning light or clean, which are desirable qualities, particularly to those consumers that
are concerned about fragrances being too strong or heavy. This point was further illustrated in the
Innovations and Innovators section where companies like Demeter are launching more “singular”
fragrances with fresh scents like Clean Skin.
In a different direction, young women report a preference for floral scents, and also express the greatest
interest in fruity and food related scents. Targeting these engaged consumers with bold, unusual scents is
an opportunity to keep them involved and excited in this highly saturated category. Brands like Olay and
Secret are targeting these younger consumers with unique fragrances that are more experiential (see Brand
Share—Women’s Fragrance). Interestingly, fragrance preferences in other categories like candles also
indicate younger consumers preferring fruity and food related scents (see Mintel’s Candles—U.S., August
2012). As mentioned throughout this report, opportunities exist for fragrances to co-brand with candles to
offer fragrance lines that appeal to specific target age groups.
108
Scent Preference
Fragrances
US, September 2012
FIGURE 61: SCENT PREFERENCE, BY GENDER AND AGE, MAY 2012
“When it comes to choosing fragrances, which of the following scent types do you prefer?”
All
wear fragrances
Fresh
Floral
Musk
Citrus
Fruit
Woody
Powder
Food related scents such as vanilla
or cinnamon
Something else
1,529
Male,
18-34
243
Male,
35-54
265
Male,
55+
202
Female,
18-34
278
Female,
35-54
311
Female,
55+
230
%
%
%
%
%
%
%
55
38
31
29
25
23
19
16
49
21
32
28
32
27
14
14
53
20
46
28
15
32
13
11
51
19
40
27
11
28
15
8
54
59
19
34
46
15
20
31
64
49
28
32
29
20
23
18
57
51
27
23
9
18
25
14
2
2
2
3
1
2
4
SOURCE: MINTEL
109
Race and Hispanic Origin
Fragrances
US, September 2012
Key points

Black, Asian, and Hispanic consumers are strong targets for the fragrance industry as they are
significantly more likely to wear virtually all fragrance forms when compared to total
respondents.

Asian fragrance wearers are more likely to use traditional fragrance forms like EDP and EDT
daily while black fragrance wearers are more likely to use line extension items like scented
lotions from mass retailers and scented shower gel on a daily basis.

Black fragrance wearers are more likely to experiment with fragrance and alternate among a
few favorite scents while Asian and Hispanic fragrance wearers are more likely to use fragrance
as a way to express their personality.
Multicultural consumers highly engaged in the category
Black, Asian, and Hispanic consumers report higher than average use of nearly all fragrance forms as well
as higher than average daily use of fragrance. This is particularly notable among Asians and Hispanics,
with 20% and 23% reporting daily usage of perfume, respectively, compared to 13% of total respondents.
Black consumers are more likely to use line extension items like body spray, scented body lotions from
mass retailers, and shower gels on a daily basis. Regardless of product preferences, multicultural
consumers over index in usage of many forms of fragrance, making them a lucrative market for
advertising, product promotion, and sampling.
However, the opportunity to target specific skin needs while still delivering scent does exist. This is
particularly true with black consumers who are more likely to suffer from dry skin and are more likely to
use moisturizers than other ethnic groups (see Mintel’s Blacks and Personal Care—U.S., March 2011).
Creating products that meet the specific needs of these consumers while delivering the scent they crave
will likely be a winning combination.
110
Fragrances
US, September 2012
FIGURE 62: FRAGRANCE USAGE, BY RACE/HISPANIC ORIGIN, ANY WEAR OR EVERY DAY, MAY 2012
All
White
Black
Hispanic
307
%
Asian or Pacific
Islander
105
%
2,000
%
1,482
%
Perfume/parfum:
Any wear
Every day
45
13
41
11
55
15
59
20
61
23
Eau de parfum:
Any wear
Every day
29
4
25
3
37
5
50
14
42
7
Eau de toilette:
Any wear
Every day
32
5
28
5
41
5
53
14
49
10
Eau de cologne:
Any wear
Every day
37
6
33
6
47
6
50
5
45
9
Body spray:
Any wear
Every day
50
12
46
11
63
18
59
14
63
15
Aftershave:
Any wear
Every day
30
6
29
6
31
5
47
9
39
6
Roll on perfume:
Any wear
Every day
20
4
16
2
30
8
43
10
32
8
Scented body lotion from a high end or
specialty retailer:
Any wear
Every day
45
8
42
7
54
10
60
11
58
11
Scented body lotion from a mass lotion
manufacturer:
Any wear
Every day
53
12
47
9
71
26
69
18
65
17
Any wear
Every day
30
5
26
4
38
9
48
12
40
7
Any wear
Every day
71
35
69
33
78
43
77
32
80
39
300
%
SOURCE: MINTEL
111
Fragrances
US, September 2012
FIGURE 63: BRANDS OF PERFUME, COLOGNE, AND TOILET WATER USED, BY RACE/HISPANIC ORIGIN, JANUARY 2011-MARCH 2012
Base: adults 18+ who use perfume,
cologne, or toilet water
Bath & Body Works
Victoria’s Secret
Avon
Calvin Klein
Estée Lauder
Ralph Lauren
Chanel
Dolce & Gabanna
Giorgio Armani
adidas
Cool Water by Davidoff
Gucci
Tommy Hilfiger
All
13,371
White
10,104
Black
1,222
Asian
344
Hispanic
5,342
%
%
%
%
%
21
16
11
11
9
8
7
7
6
5
5
5
5
20
14
10
8
9
7
6
5
5
4
4
3
4
28
21
18
15
8
13
8
14
7
10
10
13
11
15
14
6
24
13
12
10
6
6
5
9
4
7
13
19
13
17
7
10
8
10
9
8
6
8
6
Black fragrance wearers like to experiment with fragrance
Black fragrance wearers are more likely to report alternating between a few scents as well as
experimenting with different scents when compared to total respondents. Creating sample packs or trial
sizes could appeal to this desire to experiment, particularly if offered within black consumers’ preferred
fragrance forms like body sprays, lotions, and shower gels. Asians and Hispanics are more likely to report
using fragrance to express their personality as well as buy the latest fragrance launches. Asians are also the
most likely to report wearing a signature fragrance. Since these consumers prefer more traditional
fragrance forms and use scent as a way to express themselves, targeting them with advertising that
promotes confidence as well as “uniqueness” may be appealing.
Product advertising and outreach efforts to multicultural consumers should reflect their usage behavior in
promotional messaging. For example, since black users are more likely to experiment with scent, depicting
images of consumers trying a few fragrances might be a more powerful way to communicate with this
target.
112
Fragrances
US, September 2012
FIGURE 64: ATTITUDES TOWARD WEARING FRAGRANCES, BY RACE/HISPANIC ORIGIN, MAY 2012
“Thinking now about your attitudes toward wearing fragrance, which, if any, of the following
statements do you agree with?”
I alternate between a few favorite scents
I feel more confident when I wear fragrance
I wear different fragrance scents for different
occasions
I save my more expensive fragrance products for
special occasions only
I use fragrance to express my personality
I like to experiment with different scents
I never leave the house without wearing fragrance
I always wear my signature fragrance
I change my fragrance based on the season
I find it difficult to know which fragrance suits me
I like to buy the latest fragrance launches
I’ve yet to find a scent I really like
None of the above
All
White
Black
Hispanic
270
%
Asian or
Pacific
Islander
84
%
1,529
%
1,095
%
48
40
34
45
39
31
56
40
41
46
36
33
50
45
42
31
28
39
36
39
28
28
26
22
16
12
9
8
9
26
26
23
20
14
12
8
7
11
30
34
33
24
18
10
11
8
5
35
29
24
27
24
17
14
13
8
36
31
32
21
20
16
16
13
4
262
%
SOURCE: MINTEL
113
Fragrances
US, September 2012
FIGURE 65: FRAGRANCE PREFERENCES, BY RACE/HISPANIC ORIGIN, MAY 2012
fragrances
The choice of fragrance in stores can be
overwhelming
Fine fragrances are a luxury that I buy only
occasionally
I buy new fragrances on impulse, when I smell
something I like
I wear classic scents, such as Chanel No. 5,
Obsession, etc.
I wear fashion designer fragrances, such as Dior,
Jimmy Choo, Armani, Chloé, etc.
I prefer to wear scents with matching body lotions
I only buy online if I’m replacing a product I
already know I like
I am willing to spend more money on a fragrance
if it comes with an accompanying lotion
I am willing to spend more money on a fragrance
if it comes with an accompanying travel size
sample
I find fragrance counters/consultants intimidating
I wear celebrity fragrances, such as Justin Bieber
Someday, Curious (Britney Spears), etc.
None of the above
All
White
Black
Hispanic
270
Asian or
Pacific
Islander
84
1,529
1,095
%
%
%
%
%
28
29
26
26
24
27
25
31
23
32
27
25
35
24
30
24
22
26
20
30
20
16
30
18
28
20
19
16
19
31
14
26
20
24
19
17
14
24
23
22
14
12
17
24
18
12
8
13
7
7
11
17
10
15
11
17
19
13
12
10
262
SOURCE: MINTEL
Asian and Hispanic fragrance wearers express interest in fragrance product
innovations
Asian and Hispanic fragrance wearers are more likely to be interested in added properties as well as
innovative forms when it comes to fragrance. Adding functionality is clearly appealing to consumers
across the board, as it boosts consumer perception of product value and efficacy, especially in a category
that isn’t always viewed as a “necessity.” Since Asians and Hispanics express particularly high interest in
added properties, advertising these benefits in targeted advertising and product promotions will be
important. Asians in particular express higher than average interest in innovative product forms. This
could be tied to their desire to express their personality with fragrance and wanting to be “in the know”
when it comes to the latest products. As further detailed in the Interest in Product Innovations section,
creative sampling methods like scented tattoo giveaways could generate excitement among this
demographic.
114
Fragrances
US, September 2012
FIGURE 66: INTEREST IN PRODUCT INNOVATIONS—ANY INTERESTED, BY RACE/HISPANIC ORIGIN, MAY 2012
fragrances
Properties:
Fragrances that are mood enhancing/mood
boosting
Fragrances with stress relieving properties
Fragrances that provide an energy boost/pick me
up
Fragrances that have anti-aging properties
Fragrances that have appetite-suppressing
properties
Forms:
A pill you could swallow that emitted fragrance
through your pores
A temporary tattoo/body art that included
fragrance
Scent extensions:
Scented candles that smell the same as my
favorite fragrance
Air fresheners that smell the same as my favorite
fragrance
Dryer sheets that smell the same as my favorite
fragrance
Laundry detergents that smell the same as my
favorite fragrance
All
White
Black
Hispanic
270
Asian or
Pacific
Islander
84
1,529
1,095
%
%
%
%
%
76
75
76
88
84
74
69
72
68
75
69
83
79
80
75
63
60
50
63
56
49
56
70
46
75
77
64
71
68
57
29
28
24
48
44
26
21
24
19
27
19
52
44
35
26
65
62
70
74
71
62
59
69
77
65
60
58
66
69
64
58
56
60
71
63
262
SOURCE: MINTEL
115
Cluster Analysis
Fragrances
US, September 2012
Cluster Analysis
In this section, Mintel identifies three unique groups of fragrance purchasers by performing statistical
analysis on consumer questions about their attitudes toward beauty and personal care products. These
results can be used in product development, devising retailing strategies, or shaping advertising
campaigns. The clustering process involved factor analysis of individual survey items followed by Kmeans cluster analysis. The resulting three clusters were selected for 1,529 internet users aged 18+, who
wear fragrance. Mintel named the three clusters according to their particular characteristics.
FIGURE 67: TARGET CLUSTERS, MAY 2012
Influencers
47%
Seekers
31%
Uninvolved
22%
SOURCE: MINTEL
Cluster 1: Seekers
Characteristics
Seekers are involved in the beauty and personal care category but they seek recommendations from a
variety of sources including professionals, friends, family, magazines, and blogs prior to making decisions
about products. Seekers care about their appearance and believe that branded beauty and personal care
products work better than private label and are willing to spend more to get the quality that they are
seeking. Seekers are fairly evenly split among gender and age, though they tend to skew slightly higher in
household income with 22% falling in the $100K-149K group, compared to 19% of total respondents.
116
Cluster Analysis
Fragrances
US, September 2012
Opportunity
While Seekers are interested in the category, they actually show lower than average usage of most
fragrance forms. This is likely due to the lack of confidence this group feels when picking out products,
ultimately preventing them from trying products outside of their “comfort zone.” For example, 26% of
fragrance wearers report wearing roll-on perfume compared to only 16% of Seekers. Roll-on perfumes are
a newer trend in the fragrance industry, but since Seekers are “late adopters” this form is likely not part of
their product portfolio. They are also more likely to express being overwhelmed by the number of
fragrance choices available when compared to the other two cluster groups and are more likely to buy
scents they are already familiar with. Since this group lacks some confidence in their ability to pick out
products they rely on recommendations from outside sources as well as their previous experience with a
product.
Seekers are less likely to be influenced by innovative forms or the “cool” factor but are interested in
products that provide real benefits and functionality. This is illustrated in the Cluster Characteristics
Tables below where Seekers show equal interest in added product benefits like mood boosting or antiaging when compared to total respondents but show significantly less interest in innovative product forms
(e.g., scented tattoos, fragrance pills). Targeting these consumers with “proof of efficacy” advertising
rather than clever ad or social media campaigns is likely going to be the most effective strategy with
Seekers. They are also the consumers most likely to benefit from in-store consultants and beauty experts
when searching for a new product to best meet their needs. Traditional sampling methods like in-store
giveaways are likely to be an effective strategy with Seekers since previous experience with a product is
an important influencer for this group.
Cluster 2: Uninvolved
Characteristics
As suggested by their name, the Uninvolved cluster is not highly engaged in the beauty and personal care
category. They likely buy products based on price and only buy what they need to meet their basic
grooming needs. They represent the smallest cluster and are more likely to be male, older, and fall into the
lower household income groups.
Opportunity
There is little opportunity to engage the Uninvolved cluster in the fragrance category. They are the least
likely to participate in the category and less likely than average to indicate an interest in fragrances.
Marketing efforts need not be geared specifically to this relatively small group of consumers. Rather,
keeping basic, affordable product offerings available in the category will meet the simple needs of these
shoppers.
117
Cluster Analysis
Fragrances
US, September 2012
Cluster 3: Influencers
Characteristics
Influencers are highly involved in the beauty and personal care category and are the most likely to try new
products and want to stand out from the crowd. They are less concerned with recommendations and prefer
to be trailblazers when it comes to trying new products and setting trends. Influencers are confident and
care about their appearance. They aren’t necessarily motivated by price but are more likely to be
influenced by products that claim eco-friendliness or social responsibility. Influencers are the biggest
segment and are more likely to be female and younger with little differentiation among household income.
Opportunity
Influencers represent nearly 50% of fragrance wearers and are the most engaged in the category with
reported usage of nearly all fragrance forms being higher than average. This group is more likely to report
shopping in virtually all retailers when compared to total respondents but specialty beauty tops their list of
preferred retailers as well as other high end retailers like department stores and Sephora. This group is also
most likely to use fragrance to express their personality as well as buy fragrance on impulse. Influencers
are clearly the “early adopter” cluster and love to try new products, new forms, and often dictate what’s
cool. They don’t rely on recommendations from others as they feel well-informed and confident in their
ability to purchase products and know what they like.
As opposed to Seekers, Influencers express a higher than average interest in new product forms like
scented tattoos as well as added product benefits. This group likes to be “in the know” so targeting them
with social media campaigns, exclusive offers, and creative sampling (i.e., scented tattoo giveaways at
outdoor events) is likely to be the most effective strategy for further engaging this group. Also, while this
group is highly engaged, they are not very brand loyal with their penchant for experimenting and trying
new products. However, maintaining loyalty by extending fragrances into new product forms could be one
way to keep this consumer from straying.
118
Cluster Analysis
Fragrances
US, September 2012
Cluster characteristic tables
FIGURE 68: FRAGRANCE USAGE, BY TARGET CLUSTERS, MAY 2012
Any wear
Body spray
Scented body lotion from a mass lotion manufacturer
Perfume/parfum
Scented body lotion from a high end or specialty retailer
Eau de cologne
Eau de toilette
Aftershave
Eau de parfum
Scented body powder
Roll on perfume
All
1,529
%
Seekers
477
%
Uninvolved
342
%
Influencers
710
%
81
65
63
59
56
48
42
40
38
37
26
81
61
57
48
49
42
31
33
26
23
16
73
55
49
49
40
45
36
51
31
37
23
85
73
74
71
68
53
53
39
49
45
35
SOURCE: MINTEL
FIGURE 69: FRAGRANCE PREFERENCES, BY TARGET CLUSTERS, MAY 2012
The choice of fragrance in stores can be overwhelming
Fine fragrances are a luxury that I buy only occasionally
I buy new fragrances on impulse, when I smell something I
like
I wear classic scents, such as Chanel No. 5, Obsession, etc.
I wear fashion designer fragrances, such as Dior, Jimmy
Choo, Armani, Chloé, etc.
I prefer to wear scents with matching body lotions
I only buy online if I’m replacing a product I already know I
like
I am willing to spend more money on a fragrance if it comes
with an accompanying lotion
I am willing to spend more money on a fragrance if it comes
with an accompanying travel size sample
I find fragrance counters/consultants intimidating
I wear celebrity fragrances, such as Justin Bieber Someday,
Curious (Britney Spears), etc.
None of the above
All
1,529
%
Seekers
477
%
Uninvolved
342
%
Influencers
710
%
28
27
27
32
31
21
21
16
17
28
29
36
24
20
23
18
14
12
28
25
20
19
19
20
13
11
24
22
17
15
8
23
14
12
7
18
12
8
13
7
10
4
12
11
17
19
31
9
SOURCE: MINTEL
119
Cluster Analysis
Fragrances
US, September 2012
FIGURE 70: ATTITUDES TOWARD FRAGRANCE PACKAGING, BY TARGET CLUSTERS, MAY 2012
“Please indicate which of the following statements about fragrance packaging you agree with.”
I would be interested in purchasing product refills for my
perfume/cologne bottles to save money
I keep my perfume/cologne bottles on display
I would be interested in purchasing product refills for my
perfume/cologne bottles to cut down on waste
I would like to see more perfumes/colognes in non-breakable
bottles
I keep my body spray bottles on display
I would like to see more perfumes/colognes in lighter weight
bottles
I would like to see more rollerball applicators for
perfume/cologne
Only cheap perfumes/colognes come in plastic bottles
The color of the perfume/cologne bottle is important to me
The color of the perfume/cologne liquid is important to me
None of the above
All
1,529
%
Seekers
477
%
Uninvolved
342
%
Influencers
710
%
35
36
22
41
32
32
31
31
18
22
41
37
22
20
17
26
20
16
18
14
9
11
27
20
13
9
11
16
11
9
8
25
12
7
6
29
6
6
4
40
14
12
11
14
SOURCE: MINTEL
FIGURE 71: INTEREST IN PRODUCT INNOVATIONS– ANY INTERESTED, BY TARGET CLUSTERS, MAY 2012
Properties:
Fragrances that are mood enhancing/mood boosting
Fragrances that provide an energy boost/pick me up
Fragrances that have appetite-suppressing properties
Forms:
A pill you could swallow that emitted fragrance through
your pores
A temporary tattoo/body art that included fragrance
Scent extensions:
Scented candles that smell the same as my favorite
fragrance
Air fresheners that smell the same as my favorite fragrance
Dryer sheets that smell the same as my favorite fragrance
Laundry detergents that smell the same as my favorite
fragrance
All
1,529
%
Seekers
477
%
Uninvolved
342
%
Influencers
710
%
76
74
69
63
60
50
76
72
68
63
59
45
58
59
52
47
50
38
85
82
79
70
66
59
29
22
26
35
26
21
21
11
22
19
32
29
65
64
48
74
62
60
58
59
57
55
48
48
46
70
68
66
SOURCE: MINTEL
120
Cluster Analysis
Fragrances
US, September 2012
FIGURE 72: STEPS TAKEN BEFORE TRYING A NEW FRAGRANCE, BY TARGET CLUSTERS, MAY 2012
purchasing?”
Smelled it (net)
Heard about it (net)
Company promotions (net)
Received a sample from a sampling box company
Approached by a salesperson in a store
Was purchasing a scent I was already familiar with
Other
All
1,529
%
Seekers
477
%
Uninvolved
342
%
Influencers
710
%
51
35
27
25
18
10
27
17
14
39
6
48
33
25
22
15
9
23
14
12
43
7
39
25
19
18
14
6
20
13
10
37
9
58
41
31
30
22
12
34
21
18
37
4
SOURCE: MINTEL
FIGURE 73: STEPS TAKEN BEFORE TRYING A NEW FRAGRANCE, BY TARGET CLUSTERS, MAY 2012
purchasing?”
Trial:
Visited a retailer (net)
Visited a retailer to get a live trial of the scent – On a
paper/sample stick
Visited a retailer to get a live trial of the scent – On me
Used a magazine sample to try out the scent on me
Purchased a small sample size/trial size
Other
None
All
1,529
%
Seekers
477
%
Uninvolved
342
%
Influencers
710
%
48
26
47
25
39
18
53
30
34
31
29
38
27
16
3
27
26
13
3
29
19
13
4
36
31
19
1
22
SOURCE: MINTEL
Cluster methodology
This cluster analysis used the following question about attitudes toward beauty and personal care from
Mintel’s custom research survey to create three clusters. Three clusters were created based on
respondents’ overall attitudes and behaviors in the overall beauty and personal care category. These
clusters were applied to the 1,529 internet users aged 18+ who wear fragrances.
121
Cluster Analysis
Fragrances
US, September 2012
“How much do you agree or disagree with each of the following statements?”
Higher-priced beauty and personal care products work better than less expensive ones
I am willing to pay extra for better quality beauty and personal care products
Branded beauty and personal care products are better quality than a store’s own
label/private label
I like to splurge on myself when it comes to beauty and personal care products
I like to try new brands of beauty and personal care products
I often buy beauty and personal care products on the spur of the moment
I like to try new beauty and personal care products ahead of everybody else
Recommendations from friends/family influence by beauty and personal care product
purchases
Recommendations from professionals influence my beauty and personal care product
choices
Recommendations from websites/blogs influence my beauty and personal care product
choices
Recommendations from magazines influence my beauty and personal care product
choices
It’s important to me that beauty and personal care product packaging is made from
recycled materials
It’s important to me that beauty and personal care product packaging can be recycled after
use
I am influenced in my purchases by a beauty and personal care company’s record on
social responsibility
It’s important to me that beauty and personal care products are produced in a sustainable
way
I want to stand out from the crowd
It’s important to me that I always look my best when I leave the house
I get a boost of self-esteem from my beauty and personal care products
I feel more attractive when I am well groomed
People look more professional when they are well groomed
Please note that column shares may not sum to 100% due to rounding. All statistical significance is
reported at the 95% confidence level.
122
Custom Consumer Groups—Teens
Fragrances
US, September 2012
Key points

Axe and Bath & Body Works are the most used brands by teens, but brand preferences change
as teens get older.

Traditional fragrance forms like perfume and cologne are the most frequently used fragrance
products among teens.

Young female teens aged 12-14 are the most likely to be influenced by celebrity endorsements.
Aftershave use increases as male teens age
Aftershave use increases from 28% among teen boys aged 12-14 to 47% among teen boys aged 15-17.
This isn’t terribly surprising given that male teens are just starting to shave and begin puberty during these
years. However, targeting these young consumers as they are learning to use a new product could be an
opportunity for a brand to develop a relationship with the teen, potentially gaining a loyal consumer for
life. In addition, these consumers are highly engaged in the category with 69% of male teens reporting
usage of cologne, compared to 41% of male adults (see Fragrance Usage—Appendix). Keeping these
young consumers engaged by creative sampling, innovative product forms, and product benefits (see
Interest in Product Innovations) could help garner excitement and keep male consumers excited about the
category.
FIGURE 74: USE OF AFTERSHAVE LOTION AND COLOGNE, BY MALE AND AGE, OCTOBER 2010-NOVEMBER 2011
“Please indicate the types of aftershave lotion or cologne products you use.”
Base: male teens aged 12-17 who use aftershave lotion or cologne
All
240
%
Male 12-14
107
%
Male 15-17
133
%
Cologne
Body spray
Aftershave lotion
69
48
38
70
52
28
69
45
47
SOURCE: MINTEL/EXPERIAN SIMMONS NCS/NHCS FALL 2011 TEENS FULL YEAR—POP
123
Fragrances
US, September 2012
Axe is the most used brand among male teens, though usage drops with
age
Axe is the most popular brand with teenage boys who use fragrance, but reported usage drops from 53%
among young men aged 12-14 to 33% among young men aged 15-17. Axe is likely the first introduction to
fragrance for many young tweens/teens that are just starting to develop a daily grooming routine. Since
Axe offers a variety of personal care products including deodorant, shower gel, haircare, and body spray at
an affordable price, Axe meets most of the grooming needs of young male teens. However, as teens get
older, they may start working, doing their own shopping, and experimenting with other brands. For
example, among those who use aftershave or cologne, while only 7% of male teens aged 12-14 report
using adidas, this number jumps to 25% for male teens aged 15-17. Calvin Klein also increases in
popularity among older male teens. adidas and Calvin Klein are sold at a higher-price point than Axe, and
perhaps are seen as a more “adult” choice for fragrance.
FIGURE 75: USE OF AFTERSHAVE LOTION OR COLOGNE, BY MALE AND AGE, OCTOBER 2010-NOVEMBER 2011
“Please indicate the brands of aftershave lotion or cologne you use.”
Base: male teens aged 12-17 who use aftershave lotion or cologne
All
243
%
Male 12-14
109
%
Male 15-17
134
%
Axe
Old Spice
adidas
Calvin Klein
Tag
BODman
Cool Water
Gillette
Avon
Giorgio Armani
Ralph Lauren
42
21
16
10
9
8
8
6
5
4
4
53
23
7
6
8
7
3
1
5
3
4
33
19
25
13
10
9
12
10
5
5
4
Cologne and perfume are preferred forms among teens
While body spray is the most used form when averaged across both male and female teen fragrance
wearers, cologne has the highest reported usage among male teens and perfume has the highest usage
among female teens. Body sprays are appealing to both sexes though usage does appear to drop as teens
get older. Body sprays are likely tweens’/teens’ first experience with fragrance as they offer a lighter scent
at a lower-price. As teens get older and start making more of their own purchase decisions, traditional
fragrance forms like perfume and cologne become more popular.
124
Fragrances
US, September 2012
FIGURE 76: USE OF PERFUME, COLOGNE, AND TOILET WATER, BY GENDER AND AGE, OCTOBER 2010-NOVEMBER 2011
“Please indicate the types of perfume, cologne, and toilet water products you use.”
Base: teens age 12-17 who use
perfume, cologne, or toilet water
Body spray
Perfume
Cologne
Toilet water
All
968
Male 12-14
121
Male 15-17
171
Female 12-14
319
Female 15-17
357
%
%
%
%
%
61
56
28
4
59
9
66
4
47
12
75
2
68
81
8
5
63
78
5
5
Bath & Body Works tops the list for female teens
Bath & Body Works is the most used brand among female teen fragrance wearers, though usage does drop
slightly as these young women age. Among those who wear fragrance, Victoria’s Secret grows in
popularity with 30% of 12-14 year old girls using the brand jumping to 40% of female teens aged 15-17.
On the contrary, Avon has reported usage of 22% among teen girls aged 12-14, dropping to 10% of young
women aged 15-17. Avon is likely a brand introduced to tweens/teens by their moms and as teens age and
start making more of their own purchase decisions, specialty retailers like Victoria’s Secret increase in
popularity. Since female teens are more likely to shop at stores traditionally found in malls, mall
advertising can be particularly effective among this group. According to Mintel’s Spending Habits of the
Teen Consumer—U.S., August 2011, a study conducted by Scarborough Research/Arbitron Inc. claimed
that “95% of teen shoppers notice advertising on display in malls with the majority of teen shoppers
agreeing with the statement ‘the advertising I see while in the mall (such as posters, TV/video screens,
interactive displays/kiosks, promotional events and sampling) makes me want to go to specific stores
within the mall.’” This represents a huge opportunity for retailers and marketers to further expose an
already captive consumer to their brands.
125
Fragrances
US, September 2012
FIGURE 77: USE OF PERFUME, COLOGNE, AND TOILET WATER, BY GENDER AND AGE, OCTOBER 2010-NOVEMBER 2011
Base: teens age 12-17 who use
perfume, cologne, or toilet water
Bath & Body Works
Victoria’s Secret
Avon
adidas
Britney Spears
Calvin Klein
Jennifer Lopez/Jlo
Gucci
Ralph Lauren
Chanel
Dolce & Gabanna
Nautica
All
964
Male 12-14
121
Male 15-17
171
Female 12-14
318
Female 15-17
354
%
%
%
%
%
34
24
12
10
8
8
7
6
6
5
5
5
9
1
4
20
0
14
0
7
5
0
0
4
1
6
7
26
0
17
0
4
14
1
6
13
51
30
22
3
10
4
12
6
4
4
10
2
47
40
10
3
14
3
9
6
5
11
3
3
Young female teens most likely to be influenced by celebrities
Female teens aged 12-14 are the most likely to agree that they like to buy the same products used by
celebrities. Not surprisingly, they over index in usage of celebrity fragrances. This demographic represents
the majority of the fan base for popular tween/teen stars like Justin Bieber, and it would follow suit that
their fragrances would experience similar success. As teens age out of this group, their interest in such
fragrances also wanes. However, fragrance launches endorsed by celebrities popular with this young
tween/teen set is a lucrative strategy, at least for the short term.
FIGURE 78: ATTITUDES ABOUT CELEBRITIES, BY GENDER AND AGE, OCTOBER 2010-NOVEMBER 2011
“Please tell us the extent to which you agree or disagree with each statement by marking one
box opposite each statement”
All
Base: teens age 12-17
Any agree
I like to buy the same products that celebrities use
1,776
%
Male
12-14
426
%
Male
15-17
429
%
Female
12-14
458
%
Female
15-17
463
%
15
13
11
24
13
126
Fragrances
US, September 2012
FIGURE 79: CELEBRITY FRAGRANCE BRAND USAGE, BY THOSE WHO LIKE TO BUY THE SAME PRODUCTS THAT CELEBRITIES USE,
OCTOBER 2010-NOVEMBER 2011
“Please tell us the extent to which you agree or disagree with each statement by marking one
box opposite each statement.”
All
Base: teens age 12-17
Celebrity fragrances (NET)
Britney Spears
Jennifer Lopez/JLo
Celine Dion
Elizabeth Taylor
Shania Twain
Other
1,776
%
I like to buy the same products that
celebrities use
260
%
9
4
4
2
2
2
54
18
7
12
10
1
3
63
127
Key Household Purchase Measures—SymphonyIRI Group Builders Panel Data
Fragrances
US, September 2012
Key Household Purchase Measures—SymphonyIRI
Group Builders Panel Data
In this section, Mintel examines selected brands of shaving lotion/men’s fragrances to provide
manufacturers with a snapshot of their performance in the market. Manufacturers can see where their
brands fall on the competitive map and develop strategies to grow sales.
This analysis examines purchase patterns for shaving lotion/men’s fragrances, with an in-depth look at the
following consumer packaged goods products:

Shaving lotion/cologne/talc
In the brand maps, ideally, a brand will have high household penetration and a high buying rate.
Overview of shaving lotion/men’s fragrances
The shaving lotion/men’s fragrance household penetration of 20.5% is similar to that of women’s
fragrances. The purchase cycle is rather long at 89 days, and there is an annual average of 1.9 purchase
occasions. Annual volume is very small at only 12.4 ounces, and a slight 6.7 ounces for volume per
purchase occasion. In addition to the shaving lotion/cologne/talc segment, the category also includes the
men’s gift pack/sets segment, which is made up primarily of premium fragrance products.
Consumer insights on key purchase measures
The shaving lotion/cologne/talc segment is made up of a combination of value and prestige brands.
However, for the most part value brands fare better and are among the leaders, including private label. The
segment has a small household penetration rate of 16.7%. The purchase cycle is rather long at 99 days, as
these products appear to be used somewhat sparingly by men, which reduces the need for more frequent
purchases. There is a yearly average of 1.8 purchase occasions. Annual volume is 8.8 ounces, with volume
per purchase occasion of 4.8 ounces.
Brand map

None of the brands are able to boast a combination of high buying and penetration rates as the chart
features two brands with much different target audiences.

Old Spice caters to a more mature, older audience and Axe is popular with a younger audience that is
targeted with edgy advertising. Old Spice’s target audience is more likely to use some type of
fragrance on a regular basis, which helps explain its higher buying volume. Conversely, Axe users
may save its usage for special occasions such as dates and weekends so it has a lower buying rate.
128
Fragrances
US, September 2012
FIGURE 80: BRAND MAP, SELECTED BRANDS OF SHAVING LOTION/COLOGNE/TALC, BY HOUSEHOLD PENETRATION, 52 WEEKS
ENDING JUNE 26, 2011
8.6
8.5
Old Spice
8.4
Buying Rate
8.3
8.2
8.1
8.0
7.9
7.8
Axe
7.7
7.6
0.0%
1.0%
2.0%
3.0%
Penetration
4.0%
5.0%
SOURCE: MINTEL/BASED ON SYMPHONYIRI GROUP CONSUMER NETWORK™
Brand leader characteristics

None of the top brands generates a strong household penetration rate, allowing Axe to rank number at
4%. Old Spice is next at 2.5% with Gillette Series placing third with 1.3%.

The purchase cycle is very long and wide ranging. Old Spice has the shortest cycle at 82 days. By
comparison, Williams Lectric Shave is much longer at 156 days.

Axe, Afta, and Gillette Series are tied for the most purchase occasions at 1.6 times. Old Spice is alone
in second at 1.5 times while private label, Williams Lectric Shave, and Brut are tied for third at 1.4
times.

All of the brands generate high loyalty figures with Axe the leader at 69.9%, which shows that the
brand has done an effective job of connecting with its younger target audience. Brut appeals to a much
older audience and is next at 68% with Williams Lectric Shave also skewing older and in third place at
66.3%.

Private label and Brut are tied for the annual volume lead at 10.1 ounces, which is higher than the
segment average. Old Spice ranks second at 8.4 ounces with Aqua Velva Classic Ice Blue third at 8.1
ounces.
129

Fragrances
US, September 2012
All of the volume per purchase occasion leaders exceeds the segment average starting with private
label at 7.3 ounces. Brut comes in second at 7 ounces with Williams Lectric Shave places third at 6.6
ounces.
Key purchase measures
FIGURE 81: KEY PURCHASE MEASURES FOR THE TOP BRANDS OF SHAVING LOTION/COLOGNE/TALC, BY HOUSEHOLD PENETRATION,
52 WEEKS ENDING JUNE 26, 2011
Category/Brand
Percentage
of
households
buying
%
Purchase
cycle–
weighted
pairs*
Days
Purchase
occasions
per buyer
Brand
loyalty
Volume per
buyer per
year
Volume per
purchase
occasion
#
%
Ounces
Ounces
Shaving
lotion/men’s
fragrance
20.5
89
1.9
na
12.4
6.7
Shaving
lotion/cologne/
talc
Axe
Old Spice
Gillette Series
Nivea For Men
Private label
Williams Lectric
Shave
Brut
Afta
Aqua Velva Classic
Ice Blue
16.7
99
1.8
100.0
8.8
4.8
4.0
2.5
1.3
1.0
1.0
0.8
98
82
117
105
128
156
1.6
1.5
1.6
1.3
1.4
1.4
69.9
63.1
59.0
53.3
58.8
66.3
7.8
8.4
4.9
4.9
10.1
9.4
4.8
5.6
3.1
3.7
7.3
6.6
0.8
0.7
0.7
111
123
149
1.4
1.6
1.3
68.0
58.5
65.5
10.1
5.7
8.1
7.0
3.6
6.1
* consumers must purchase the category at least two times to be included in the purchase computation
SOURCE: MINTEL/BASED ON SYMPHONYIRI GROUP CONSUMER NETWORK™
130
Appendix—Other Useful Consumer Tables
Fragrances
US, September 2012
Fragrance usage
FIGURE 82: FRAGRANCE USAGE, BY GENDER, MAY 2012
All
2,000
%
Male
980
%
Female
1,020
%
Perfume/parfum:
Any wear
Every day
A few days a week
Only occasionally
45
13
9
9
14
13
29
9
5
7
8
6
60
16
13
11
20
19
Eau de parfum:
Any wear
Every day
A few days a week
Only occasionally
29
4
7
6
11
8
22
3
8
5
6
5
36
5
6
8
17
12
Eau de toilette:
Any wear
Every day
A few days a week
Only occasionally
Never
32
5
7
8
12
7
61
28
4
8
8
7
6
66
36
5
7
8
16
8
55
Eau de cologne:
Any wear
Every day
A few days a week
Only occasionally
37
6
8
8
14
10
41
8
10
9
14
11
32
4
6
7
15
8
Body spray:
Any wear
Every day
A few days a week
Only occasionally
50
12
11
12
15
7
41
10
10
10
11
7
58
15
11
13
20
6
131
Fragrances
US, September 2012
Roll on perfume:
Any wear
Every day
A few days a week
Only occasionally
20
4
4
5
8
3
22
5
6
7
5
3
18
3
2
3
10
3
Scented body lotion from a fragrance line such as Chanel or a
specialty retailer such as Bath & Body Works or Victoria’s Secret:
Any wear
Every day
A few days a week
Only occasionally
45
8
10
11
17
6
28
3
8
8
9
4
62
13
11
13
24
8
Scented body lotion from a lotion manufacturer, such as Nivea or
Vaseline:
Any wear
Every day
A few days a week
Only occasionally
53
12
11
12
17
3
41
8
10
12
12
4
64
17
13
13
21
2
Any wear
Every day
A few days a week
Only occasionally
30
5
6
7
12
4
30
5
8
8
9
4
30
6
5
5
14
4
Any wear
Every day
A few days a week
Only occasionally
71
35
15
12
9
3
62
27
14
12
9
4
79
42
17
11
10
2
SOURCE: MINTEL
132
Fragrances
US, September 2012
Trying a new fragrance
FIGURE 83: STEPS TAKEN BEFORE TRYING A NEW FRAGRANCE, BY GENDER, MAY 2012
purchasing?”
All
1,529
%
Male
710
%
Female
819
%
51
35
27
25
18
10
27
17
14
39
6
49
35
25
30
22
12
28
18
15
35
6
53
35
28
20
15
8
27
17
14
42
6
Smelled it
Heard about it
Company promotions
Received a sample from a sampling box company
Approached by a salesperson in a store
Was purchasing a scent I was already familiar with
Other
SOURCE: MINTEL
FIGURE 84: STEPS TAKEN BEFORE TRYING A NEW FRAGRANCE, BY GENDER, MAY 2012
purchasing?”
Trial:
Visited a retailer
Visited a retailer to get a live trial of the scent—on a paper/sample stick
Visited a retailer to get a live trial of the scent—on me
Used a magazine sample to try out the scent on me
Purchased a small sample size/trial size
Other
None
All
1,529
%
Male
710
%
Female
819
%
48
26
34
27
16
3
27
48
25
33
24
16
2
32
49
26
35
29
16
3
24
SOURCE: MINTEL
133
Fragrances
US, September 2012
Purchase locations
FIGURE 85: FRAGRANCE PURCHASE LOCATIONS, BY HOUSEHOLD INCOME, MAY 2012
$50K74.9K
286
$75K99.9K
243
$100K149.9K
295
$150K+
271
$25K49.9K
317
%
%
%
%
%
%
%
Drug store:
Any purchase
In a store
Online
60
57
5
65
63
2
65
61
6
61
57
6
60
57
6
52
50
5
50
47
5
Specialty retailer like Victoria’s
Secret or Bath & Body Works:
Any purchase
In a store
Online
59
54
12
51
49
7
54
49
12
60
56
12
72
64
18
62
58
12
50
47
9
Macy’s or other mid-range
department store:
Any purchase
In a store
Online
56
52
8
41
38
4
53
49
9
57
50
11
65
60
11
62
58
7
65
62
7
Mass merchandiser:
Any purchase
In a store
Online
55
52
8
58
56
4
62
57
9
59
55
8
58
53
12
48
45
6
37
33
7
JCPenney, Sears, or other valuepriced department store:
Any purchase
In a store
Online
44
41
9
48
45
5
52
48
11
46
42
9
49
45
11
35
31
7
26
24
6
Supermarket:
Any purchase
In a store
Online
43
40
5
48
46
3
49
46
4
44
40
6
44
40
6
36
33
4
32
29
6
TJMaxx, Marshalls, or other
discount retailer:
Any purchase
In a store
Online
40
37
5
36
34
3
48
45
4
42
40
5
41
35
8
37
32
6
36
35
3
Online retailer, like Amazon.com:
Online
32
22
34
35
41
29
33
wear fragrances
All
<$25K
1,529
117
134
Fragrances
US, September 2012
Bloomingdale’s or other high end
department store:
Any purchase
In a store
Online
27
23
7
13
11
2
24
18
8
28
21
8
34
28
9
32
29
5
40
37
11
Sephora:
Any purchase
In a store
Online
26
20
9
15
12
5
23
17
8
28
22
9
33
24
14
28
22
9
33
27
12
Clothing store, such as Gap:
Any purchase
In a store
Online
26
23
7
26
22
5
31
27
8
29
24
8
26
22
8
22
20
5
21
21
9
Fragrance-only retailer, such as
Perfumania:
Any purchase
In a store
Online
25
18
9
15
11
4
28
21
9
26
19
9
31
19
15
24
18
9
27
18
12
Ulta:
Any purchase
In a store
Online
21
17
5
10
8
3
18
14
7
21
15
6
26
21
6
26
22
5
27
25
5
Duty-free shop:
In a store
15
9
16
18
15
13
27
TV retailer, like QCV or HSN (please
select “in a store” option for this if
purchased via telephone):
Any purchase
In a store
Online
16
9
9
11
7
4
19
10
11
19
11
10
21
10
14
14
7
9
15
9
8
SOURCE: MINTEL
135
Fragrances
US, September 2012
Interest in product innovations
FIGURE 86: INTEREST IN PRODUCT INNOVATIONS, MAY 2012
Base: 1,529 internet users aged 18+ who wear fragrances
Any
interested
%
Properties:
Fragrances that are mood enhancing/mood
boosting
Fragrances that provide an energy
boost/pick me up
Fragrances that have appetite-suppressing
properties
Forms:
A pill you could swallow that emitted
fragrance through your pores
A temporary tattoo/body art that included
fragrance
Scent extensions:
Scented candles that smell the same as my
favorite fragrance
Air fresheners that smell the same as my
favorite fragrance
Dryer sheets that smell the same as my
favorite fragrance
Laundry detergents that smell the same as
Very
interested
%
Somewhat
interested
%
Not very
interested
%
Not at all
interested
%
76
32
44
14
10
74
69
29
27
44
42
16
18
11
12
63
60
50
26
22
20
37
38
30
24
26
29
13
14
22
29
10
19
24
47
26
21
8
6
18
15
26
27
48
52
65
21
44
18
17
62
20
42
20
18
60
21
39
22
18
58
20
38
23
19
SOURCE: MINTEL
136
Appendix—SymphonyIRI Builders Panel Data Definitions
Fragrances
US, September 2012
Appendix—SymphonyIRI Builders Panel Data
Definitions
SymphonyIRI’s Consumer Network is a household panel of nearly 100,000 U.S. households, balanced and
weighted to represent current Census demographics on a variety of key consumer variables. In this panel,
shoppers scan the UPC barcodes of products they purchase on their shopping trips. Barcoded product
information is transmitted electronically to IRI for analysis.
Panel data provide manufacturers, retailers, and analysts with a means to examine metrics like brand
penetration, purchase cycles, and volumetric purchase measures, and to compare how brands perform
against competitive brands in the category. This information all links directly to consumers’ households,
allowing manufacturers and retailers to determine their brands’ performance over time, in homes.
Household panel data are behavioral data; they consist of scanned UPC barcodes and are useful in
supplementing and validating other consumer data sources, such as retailer POS and survey data. POS data
tell what products are moving, where, and how much. Survey data are attitudinal data, and come from
consumers’ self-reported attitudes and behaviors. Panel data provide a means for researchers to test the
relationship between what consumers say they prefer, and what they actually purchase for their
households.
It must be noted that household panels cover some channels and products better than others. FDMs are
well represented in panel data. Specialty channels, like nutrition shops, convenience stores (where
products are typically consumed on the spot and, thus, often not scanned), and other channels are not as
well depicted in panel data.
SymphonyIRI Consumer Network Metrics
Selected measures provide insight into consumer purchase patterns. Mintel uses the following measures in
this report:

Percentage of households buying—or penetration. To be included in this measure, a household (HH)
must have purchased the category/brand at least once in the past 52 weeks
% HH buying =
Households that purchased category, subcategory, or brand X 100
Total households
This measure gauges product usage.

Purchase cycle (weighted pairs method)—how many days, on average, are between purchases. To
be included in this measure, a household must have purchased the category/brand at least twice in the
past 52 weeks.
For example if:
HH1 purchases a product every 15 days
137
Appendix—SymphonyIRI Builders Panel Data Definitions
Fragrances
US, September 2012
Purchase Cycle (weighted pairs) = (15 + 30 + 10 + 5/4 HH’s) = 15-day purchase cycle
This measure gauges purchase frequency and can be useful in determining usage.
Purchase Cycle (weighted pairs) =

Sum of average purchase cycle per household
Total households purchasing category
Purchase occasions per buyer—shows how often buyers purchase this item in a year; this measure
also includes one time buyers.
Purchase Occasions Per Buyer =
Total Item Purchase Occasions
Item Buyers
This is another measure of usage and adds a frequency measure to determine usage.

Subcategory volume share—this is a measure of loyalty, and shows, in a subcategory, how much of
a consumer’s purchases are of a particular brand.
Subcategory Volume Share =
Brand Volume X 100
Subcategory Volume
This measure defines how important brand is in a subcategory based on volume.

Volume per buyer—this is a diagnostic measure, showing how much of a category, subcategory, or
brand is purchased each year, on average.
Volume Per Buyer =
Total Volume Sales
Total Category/Subcategory/Brand Buyers
This measure is most often used as a diagnostic across brands.

Volume per purchase occasion—the average category, subcategory, or brand volume purchased by
buyers of that category, subcategory, or brand.
Volume Per Purchase Occasion =
Total Volume Sales of Item
Shopping Trips with Item
This measure examines quantity, based on volume of a product purchased, each time that category,
subcategory, or brand is purchased.
138
Appendix—Trade Associations
Fragrances
US, September 2012
The following trade associations are associated with the fragrance industry in the U.S. Descriptions
provided based on association’s self-description available online.
The American Society of Perfumers
P.O. Box 1551
West Caldwell, NJ 07004
Tel: 201.991.0040
Web: www.perfumers.org
The American Society of Perfumers is a nonprofit organization founded in 1947. It was founded by
perfumers working in the U.S. and its main goal is to foster and encourage the art and science of
perfumery while promoting professional exchange and conduct within the fragrance industry.
Cosmetic Executive Women Inc. (CEW)
286 Madison Ave., 19th Floor
New York, NY 10017
Tel: 212.685.5955
Fax: 212.685.3334
Web: www.cew.org
Founded in 1954, CEW is a nonprofit professional organization with more than 4,000 executives in the
beauty, cosmetics, fragrance, and related industries. CEW helps members develop career contacts,
knowledge, and skills to advance professionally and personally.
The Fragrance Foundation
545 Fifth Ave., Suite 900
New York, NY 10017
Tel: 212.725.2755
Fax: 212.779.9058
Web: www.fragrance.org
Established in 1949 by six industry leaders affiliated with Elizabeth Arden, Coty, Guerlain, Helena
Rubinstein, Chanel, and Parfums Weil, the Fragrance Foundation is the nonprofit affiliate of the
international fragrance industry. The Fragrance Foundation develops educational programs
about fragrance for the American public. It also serves as a source of industry-related reference materials.
Members include manufacturers, suppliers, designers, packagers, retailers, and media/PR agencies.
139
Fragrances
US, September 2012
Personal Care Products Council (PCPC)
1101 17th St. NW, Suite 300
Washington, D.C. 20036
Tel: 202.331.1770
Fax: 202.331.1969
Web: www.ctfa.org
The PCPC (formerly the Cosmetic, Toiletry and Fragrance Association) is the leading national trade
association for the cosmetic and personal care products industry and represents the most innovative names
in beauty today.
Society of Cosmetic Chemists
120 Wall St., Suite 2400
New York, NY 10005
Tel: 212.668.1500
Fax: 212.668.1504
Web: www.scconline.org
Established in 1945, the Society of Cosmetic Chemists has 18 chapters throughout the U.S. and Canada,
with more than 4,000 individual members. The society is dedicated to the advancement of cosmetic
science, and uses meetings and publications to further the qualifications and education of cosmetic
scientists. Its stated mission is to promote the interests and recognition of cosmetic scientists, while
maintaining the confidence of the public in the cosmetic and toiletries industry.
140
Appendix: Research methodology
Appendix: Research Methodology
Fragrances
US, September 2012
Consumer Research
In-depth consumer research examines how social, economic, cultural and psychological influences affect
attitudes and purchasing decisions. Mintel combines exclusive primary research with syndicated data to
provide an accurate and unique analysis. Consumer research is stored in a database supervised by Mintel’s
data analysts and statisticians. For additional analysis of survey data, or with questions about consumer
research methodology, please contact Mintel at 312.932.0400.
Primary Data Analysis
For each report Mintel develops custom primary research questions and uses specialty research firms for
data collection.
Sampling
Online surveys
In most cases, Mintel selects survey respondents by gender, age, household income, and region so that
they are proportionally representative of the entire U.S. adult population. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or black to ensure an adequate
representation of these groups in our survey results and to allow for more precise parameter estimates
from our reported findings.
In some instances, Mintel also uses specialist panels or targeted sample to reach a certain demographic or
target market.
Phone surveys
Mintel commissions phone surveys for some of its reports. Mintel utilizes both Random Digit Dialing
(RDD) and demographic and geographic targeted phone lists for its telephone data collection.
Global Market Insite (GMI)
Founded in 1999, GMI’s double opt-in U.S. online consumer panel contains approximately 4 million U.S.
consumers. GMI recruits its panelists through many different sources including web advertising,
permission-based databases and partner-recruited panels. GMI also has a number of specialty panels,
including a Hispanic and an African American panel, which Mintel uses to collect data for some of its
reports. GMI’s African American panel consists of about 150,000 African American panelists and its
Hispanic panel is made up of about 26,000 Hispanic panelists.
Secondary Data Analysis
In addition to exclusively commissioned surveys, Mintel gathers syndicated data from the most respected
consumer research firms. This allows Mintel analysts to form objective and cohesive analysis of consumer
attitudes and behavior.
142
Fragrances
US, September 2012
Experian Simmons National Consumer Studies
Mintel reports frequently draw on the Experian Simmons National Consumer surveys conducted by
Experian Consumer Research. The Experian Simmons National Consumer Study (NCS) is a
comprehensive survey of American consumers aged 18 and older. It provides single-source measurement
of major media, products, services, and in-depth consumer demographic and lifestyle/psychographic
characteristics.

20,000 adults 18+

Two-phase data collection
o
o
Phase 1: A telephone placement interview for a self-administered mail survey is
conducted with any adult aged 18 or over in the household
Phase 2: Self administered survey is mailed to each qualified household member

Upfront cash incentives/sweepstakes offer

All qualified household members aged 18 or over participate by completing their own personal
booklets

Principal shopper completes one Household Survey

Conducted and released quarterly—Winter, Spring, Summer and Fall

Ability to look at full-year and quarterly data
The Experian Simmons National Hispanic Study (NHCS) is the only national, multi-media syndicated
research instrument targeting the Hispanic market, and is particularly valuable in identifying media habits,
product and service usage and attitudes and opinions among this segment.

7,500 Hispanic adults 18+

Two-phase data collection
o
o
Phase 1: A telephone placement interview for a self-administered mail survey is
conducted with any adult aged 18 or over in the household
Phase 2: Self administered survey is mailed to each qualified household member

Survey offered in Spanish or English—respondent’s choice

Incentive/sweepstakes offer

Conducted and released quarterly—Winter, Spring, Summer and Fall

Ability to look at full-year and quarterly data
The samples for the Kids and Teens Studies are taken from the same households participating in the adult
study. The Kids and Teens Studies provide in-depth insight into these consumer segments to understand
their affect on the marketplace, and how and where to reach them.
143
Fragrances
US, September 2012

2,500 Teens 12-17 and 2,600 Kids 6-11

Both samples gathered from within NCS participating households

Upfront incentive/sweepstakes offer

All teens or kids in household participate by completing their own personal booklets

Released twice a year—Spring and Fall data releases
In some instances Mintel uses Experian’s Mosaic segmentation system to further analyze Experian
Simmons NCS/NHCS data. Mosaic is a household-based segmentation system, which classifies 99.5% of
all U.S. households and neighborhoods into 60 unique Mosaic types and 12 groupings that share similar
demographic and socioeconomic characteristics. More than 300 data variables are used to build Mosaic:
80% is sourced from Experian’s INSOURCE person, household and ZIP+4 level data, and 20% is sourced
from 2001Census data at block group. Descriptive content is sourced from Simmons NCS/NHCS data.
All of the Mosaic groups and types are listed below:
% of U.S. households
A – Affluent Suburbia:
A01 America's Wealthiest
A02 Dream Weavers
A03 White-Collar Suburbia
A04 Upscale Suburbanites
A05 Enterprising Couples
A06 Small-Town Success
A07 New Suburbia Families
11.19
1.14
1.74
1.43
0.84
0.84
2.38
2.82
B – Upscale America:
B01 Status-Conscious Consumers
B02 Affluent Urban Professionals
B03 Urban Commuter Families
B04 Solid Suburban Life
B05 Second-Generation Success
B06 Successful Suburbia
13.26
1.55
1.44
6.33
0.63
2.40
0.91
C – Small Town Contentment:
C01 Second City Homebodies
C02 Prime Middle America
C03 Suburban Optimists
C04 Family Convenience
C05 Mid-Market Enterprise
7.64
0.74
3.52
0.61
1.93
0.84
D – Blue Collar Backbone:
D01 Nuevo Hispanic Families
D02 Working Rural Suburbia
D03 Lower-Income Essentials
D04 Small-City Endeavors
6.57
2.73
1.06
0.83
1.95
E – American Diversity :
E01 Ethnic Urban Mix
E02 Urban Blues
E03 Professional Urbanites
9.73
1.89
1.74
2.09
144
Fragrances
US, September 2012
E04 Suburban Advantage
E05 American Great Outdoors
E06 Mature America
1.15
1.37
1.48
F – Metro Fringe:
F01 Steadfast Conservative
F02 Moderate Conventionalists
F03 Southern Blues
F04 Urban Grit:
F05 Grass-Roots Living
10.63
6.51
1.60
0.92
0.55
1.05
G – Remote America:
G01 Hardy Rural Families
G02 Rural Southern Living
G03 Coal And Crops
G04 Native Americana
7.39
2.70
2.71
1.81
0.18
H – Aspiring Contemporaries:
H01 Young Cosmopolitans
H02 Minority Metro Communities
H03 Stable Careers
H04 Aspiring Hispania
11.18
3.22
2.20
4.29
1.48
I – Rural Villages and Farms:
I01 Industrious Country Living
I02 Americas Farmlands
I03 Comfy Country Living
I04 Small-Town Connections
I05 Hinterland Families
4.77
1.30
1.04
0.73
0.48
1.23
J – Struggling Societies:
J01 Rugged Rural Style
J02 Latino Nuevo
J03 Struggling City Centers
J04 College Town Communities
J05 Metro Beginnings
8.20
1.62
2.91
1.72
0.98
0.98
K – Urban Essence:
K01 Unattached Multi-Cultures
K02 Academic Influences
K03 African-American Neighborhoods
K04 Urban Diversity
K05 New Generation Activists
K06 Getting By
8.63
0.38
0.47
1.93
2.44
2.37
1.05
L – Varying Lifestyles:
L01 Military Family Life
L02 Major University Towns
L03 Gray Perspectives
0.80
0.31
0.27
0.22
145
Fragrances
US, September 2012
Statistical Forecasting
Statistical modelling
For the majority of reports, Mintel produces five-year forecasts based on an advanced statistical technique
known as ‘multivariate time series auto-regression’ using the statistical software package SPSS.
The model is based on historical market size data taken from Mintel’s own market size database and
supplemented by published macroeconomic and demographic data from various private and public sources
including the Federal Reserve Board, the U.S. Commerce Department, the Census Bureau, the Council of
Economic Advisers, and the Congressional Budget Office.
The model searches for relationships between actual market sizes and a selection of relevant and
significant macroeconomic and demographic determinants (independent variables) to identify those
predictors having the most influence on the market.
Factors used in a forecast are stated in the relevant report section alongside an interpretation of their role
in explaining the development in demand for the product or market in question.
Qualitative insight
At Mintel we understand that historic data is limited in its capacity to act as the only force behind the
future state of markets. Thus, rich qualitative insights from industry experts regarding future events that
might impact upon various markets play an invaluable role in our post statistical modeling evaluation
process.
As a result, the Mintel forecast complements a rigorous statistical process with in-depth market knowledge
and expertise to allow for additional factors or market conditions outside of the capacity of the statistical
forecast.
Statistical
Modelling
+
Qualitative
Insight
=
Mintel
Forecast
The Mintel fan chart
Forecasts of future economic outcomes are always subject to uncertainty. In order to raise awareness
amongst our clients and to illustrate this uncertainty, Mintel has introduced a new way of displaying
market size forecasts in the form of a fan-chart.
Next to historical market sizes and a current year estimate, the fan chart illustrates the probability of
various outcomes for the market value/volume over the next five years.
146
Fragrances
US, September 2012
At a 95% confidence interval, we are saying that 95 out of 100 times, the forecast will fall within these
outer limits, which we call the best and worst case forecast as these, based on the statistically driven
forecast, are the highest (best case) and lowest (worst case) market sizes the market is expected to achieve.
Over the next five years, the widening bands successively show the developments that occur within 95%,
90%, 70% and 50% probability intervals. Statistical processes predict the central forecast to fall within the
darker shaded area which illustrates 50% probability, i.e. a 5 in 10 chance.
A general conclusion: Based on our current knowledge of given historic market size data as well as
projections for key macro- and socio-economic measures that were used to create the forecast, we can
assume that in 95% of the time the actual market size will fall within the purple shaded fan. In 5% of all
cases this model might not be correct due to random errors and the actual market size will fall out of these
boundaries.
Weather analogy
To illustrate uncertainty in forecasting in an everyday example, let us assume the following weather
forecast was produced based on the meteorologists’ current knowledge of the previous weather condition
during the last few days, atmospheric observations, incoming weather fronts etc.
Now, how accurate is this forecast and how certain can we be that the temperature on Saturday will indeed
be 15°C?
To state that the temperature in central London on Saturday will rise to exactly 15°C is possible but one
can’t be 100% certain about that fact.
To say the temperature on Saturday will be between 13°C and 17°C is a broader statement and much more
probable.
147
Fragrances
US, September 2012
In general, we can say that based on the existing statistical model, one can be 95% certain that the
temperature on Saturday will be between 13°C and 17°C, and respectively 50% certain it will be between
about 14.5°C and 15.5°C. Again, only in 5% of all cases this model might not be correct due to random
errors and the actual temperature on Saturday will fall out of these boundaries and thus will be below 13°C
or above 17°C.
(To learn more about uncertainty in weather forecasts visit:
http://research.metoffice.gov.uk/research/nwp/ensemble/uncertainty.html)
148
Fragrances
US, September 2012
Appendix: What is Mintel?
Mintel provides industry-leading market intelligence
Mintel began over three decades ago, providing food and drink research in the UK. Now the brand spans
all corners of the globe. Mintel's leading analysts are world-renowned experts called upon daily by the
media to comment, and trusted by the worlds leading brands as their preferred research partner. Mintel's
clients gain global insight into consumer behaviour, product innovation and competitive marketing
strategies. Our high quality data, meaningful analysis and actionable recommendations always positively
impact our clients' business. We help them tap into new product opportunities, build brands, recognise
competitive threats and respond to their individual business needs, so they gain competitive strength and
profitability.
Insight + Impact: Mintel's commitment to its clients is encapsulated in this simple formula.
Mintel Solutions:
Mintel Oxygen Reports
Mintel Oxygen is a one-stop online platform, designed to give you easy and fast access to our forwardlooking consumer and market insight. Mintel Oxygen answers the burning questions impacting your
marketplace while offering an inspiring point of view to fuel practical business solutions.
Mintel GNPD
Mintel’s Global New Products Database provides unbeatable online coverage of new products worldwide,
keeping you informed of trends, competitors and category developments. Our global team works closely
with our clients to ensure that our high-quality data, market insight and strategic advice provide you with
customised product innovation intelligence.
Mintel Inspire
Mintel Inspire is a database tracking emerging trends that hold potential for sales success. Mintel experts
scour the marketing, social and cultural world on a daily basis, turning observations into readable,
entertaining and actionable insights. Benefit from Mintel's experts evaluation of how the newest trends and
observations may impact your business.
Mintel Beauty Innovation
Mintel Beauty Innovation is your window to the world of Beauty and Personal Care products, covering
mass market launches and top global prestige and niche introductions. Our online
solution gives you access to over 370,000 new products and encompasses editorial and analysis on global
trends created by our team of expert beauty consultants.
149
Fragrances
US, September 2012
Mintel Menu Insights
Stay on top of the latest food and beverage trends in the US with Mintel Menu Insights, your online
connection to trends in the foodservice industry. Spot and respond to changes in price, menu items,
ingredients, preparations, or even entirely new restaurant menus.
Mintel Research Consultancy
Mintel Research Consultancy is a dedicated team, with a wealth of industry experience that implements
high quality business-to-business and consumer research programmes specifically to meet your needs.
Clients utilise our research expertise to deliver custom market, competitive, and consumer intelligence
solutions.
Mintel Comperemedia
Mintel Comperemedia is a searchable, competitive database tracking direct mail and print advertising in
the US and Canada, as well as email in the US. Our online database enables clients to track trends,
monitor competitors and develop differentiated direct marketing strategies in credit cards, banking,
insurance, investments, telecom, travel and automotive.
150
Need to know more about Mintel?
To view a complete index of Mintel reports, or find out about the latest titles published
please go to reports.mintel.com
To find out how the whole range of Mintel products can enhance your business, visit the
group site at www.mintel.com.
To speak with our information team about any aspect of Mintel’s solutions please call
+44 (0)20 7606 6000 (UK) or (1) 312 943 5250 (US)
Mintel Research Consultancy
For further analysis on this report, or to design a tailored report, contact Mintel Research
Consultancy on +44 (0)20 7606 4533.

Fragrances - US, September 2012

Transcription

Similar documents

The Essence of Solutions

+INFO - Lladró

Air Freshener ONLY

AromaGlow® Advantage

LOLA JAMES HARPER EAU DE TOILETTE FRAGRANCES

THE WHITE COMPANY Pure White Indulgence

heaven scent - Austin Advisory Group

lorenzo villoresi (pdf - 2.84 mb)

Pure Beauty – Fragrance Focus May 2011 - beaut-e

Article - Fragrance Du Bois