Many of you having been asking about the similarities and differences between the UK and US fragrance markets. To help you gain some perspective, find below the top ten findings from the 2008 UK Fragrance Market.




No end to fragrance launch frenzy
• 2008 was another bumper year for new fragrances and there are now more men’s and women’s fragrance launches than in any other beauty category.
• Retailers are put under considerable pressure to stock new fragrance lines and have become ruthless in weeding out underperforming brands.
• The effect has been to speed up the rate at which the fragrance houses launch new brands which is often at the expense of creativity.

Classics are a safe option
• Fragrance is a reliable and safe gift choice at Christmas, especially for those brands which have been around for years.
• When people feel nervous, they tend to turn to what they know rather than risk their hard earned cash on something new and unknown.

Coffrets come back into fashion
• In the past couple of years, a number of premium houses have taken the decision to cut back on the number of coffrets they sell at Christmas.
• Coffrets can be a loss leader for companies who prefer to sell standard items at significantly higher margins.
• The credit crunch has changed attitudes towards the much maligned value coffret.
• They are probably the most important tool in premium brands’ armory at Christmas, especially if they are seen to offer genuine value for money.

Shopping to a budget
• In 2008, there were definite signs that people were buying to a budget and that budget was lower than in the past.
• Whereas £50 may have been the top price paid for fragrance gifts in December 2007, this had dropped to £40-£45 in 2008.

Online versus the High Street
• Whilst beauty retailing on the high street is feeling the pressure, many online retailers are continuing to post good growth.
• However, they had to fight their corner far harder last Christmas in order to win over bargain-hunting consumers who expect discounts and special deals, just as they do on the High Street.

Celebrity fragrances: boom or bust?
• Celebrity fragrances remain popular amongst young consumers, especially teenagers, who shop from fragrance discounters.
• Celebrity fragrances often hit the jackpot with their first fragrance but follow-ups are never as big.
• The signs are that celebrity fragrances may be starting to lose their shine. Too many celebrities have put their name to fragrance and consumers no longer believe that they are as involved in the creation of the juice as claimed.

I Million boost men’s fragrance market
• The launch of 1 Million by Paco Rabanne could not have been more timely, when people were feeling the pinch and needed cheering up.
• With the value of money plummeting, what better gift than a “solid gold ingot” bearing the words 1 Million?
• 1 Million demonstrated that Christmas gifts do not need to cost a fortune, but can look the part.

Advertising still pulls a punch
• Many brands benefited from competitive TV rates in December 2008 which gave them a lot more air time for their money than in the past.
• The trend for cheaper and shorter ads may be a blessing in disguise, resulting in more clutter and a lower share of voice at crucial times.

Woody fragrances for women
• Woody fragrances have been traditionally associated with the men’s market, but a trend for woods is emerging in women’s.
• Estée Lauder’s newest fragrance Sensuous is not the usual floral composition associated with so many Lauder brands, but moves into this new territory with a woody amber positioning.
• Lancome’s Magnifique also fits the woody category and is described as a spicy, woody floral.

Florals for men
• In men’s, some brands are starting to experiment with florals, normally considered to give women’s fragrance their femininity.
• Examples of men’s florals include Jean Paul Gaultier’s Fleur du Male (“white flowers in an intensely floral jus”) and Kenzo Power (“imaginary flower in the heart of a woody, amber-y fragrance”).

The UK FiFi Awards and Celebration will be held on Wednesday, April 22, at The Dorchester in London.