According to a recent Euromonitor International brief, while the performance of fragrances improved in 2010 compared to the blip experienced in the prime of the recession, the key challenge for fragrance brands remains the ability to stand out in an increasingly crowded marketplace. Certainly in the case of super-premium fragrances, this has meant more distinctive packaging and positioning, not just scent, with recent high-profile launches able to convey status and individuality. As it becomes increasingly important to connect with the consumer on a more emotive level, fragrance houses will seek to exert more discerning qualities through artisanal scents, limited editions or standalone brands—which reflect greater authenticity and uniqueness.
This will be particularly crucial for the industry's high-value markets, but increasingly so for the next tier fragrance hot spots of Russia and China where a distinct taste for luxury is becoming ever more apparent.
For more on premium fragrances and overall luxury beauty markets and segments, read Super Premium Beauty on Cusp of a New Era of Growth.