The Coming
Spritz Blitz
How high-end perfume makers are fighting back against
the onslaught of celebrity scents
By CHERYL LU-LIEN TAN
January 6, 2007; Page P1
Rebecca Hanners's grandmother wore one
perfume -- Chantilly by Dana -- every day for 36 years. Ms.
Hanners isn't so loyal. When the 32-year-old executive
recruiter heads to the office, she spritzes on Ralph
Lauren's Blue, but for the mall she favors Dior's Hypnotic
Poison. In all, there are eight scents in what she calls her
"fragrance wardrobe."
Perfume companies are trying a new approach
to court fickle consumers like Ms. Hanners. Some top makers
are set to launch multiple scents in groups, hoping women
who don't want one signature fragrance will snap up several
from a collection instead -- and become faithful to the
umbrella brand.
The new collections include Les Exclusifs
de Chanel, a 10-fragrance line the maker of iconic Chanel
No. 5 will launch next month. In April, designer Tom Ford
will launch Private Blend, a collection of 12 perfumes that
spans floral and citrus scents. This fall, Dior will start
selling a new line of perfumes created by designer John
Galliano. Also later this year, Creed will offer a $1,600
collection of three perfumes packaged in a leather case.
These collections differ from the
industry's longstanding practice of marketing boxed sets.
Those sets typically contain a range of products -- such as
perfume, lotion and soap -- all based on the same scent. The
new collections group different scents under a single
banner. Most companies are selling each scent individually
-- intending for women to buy several perfumes from the
collection over time instead of turning to competing brands.
"The problem today is that the one-shot
scent no longer brings back the customer," says Thomas
Saujet, president of Creed North America. "Launching a
collection of fragrances is like a five-course meal: You can
taste a little bit of everything, and if you like the meal,
you'll come back and try the fish. Why have a customer go to
another counter for something else when you can introduce
them to something similar here?"
Some of the new scents are pricier than the
brands' other offerings. In Chanel's new collection, the
smallest bottle is a 6.8-oz. version that will cost $175. By
comparison, a 3.4-oz. bottle of the brand's Chanel No. 5
costs $75.
Generally speaking, floral scents -- Joy,
for example -- are the best sellers in the U.S., while
deeper woodsy or spicy fragrances are popular in Europe.
Another variety of scent growing in favor in the U.S. is the
so-called gourmand type, which evokes foods like caramel or
cotton candy and may appeal more to younger women.
The industry has seen profit margins slip
recently because, with so many new perfumes on the market,
"the life cycle of fragrances is potentially shorter," says
Stephen Mormoris, senior vice president of marketing for
Coty Beauty. Coty plans to add three scents this year to the
Marc Jacobs Splash line it launched last year.
The shift in strategy follows a drop in
U.S. fragrance sales that began in 2001, partly due to
shoppers viewing perfume as an optional luxury, says
Virginia Lee, senior research analyst at Euromonitor
International. "Perfume lost its prestige factor," she says.
"It's not like a designer bag or shoe, where people in the
know can instantly recognize that you're carrying the 'It'
bag. "
In 2005, due to a flurry of celebrity
perfume launches, U.S. sales at department stores rose 3% to
$2.9 billion, according to market researcher NPD Group. But
sales most likely dipped last year. Through November, they
were running 2% behind 2005 levels, says Karen Grant, NPD's
senior beauty-industry analyst.
Brands are also trying to make the new
scents seem special by limiting distribution and spinning
elaborate stories around each one. The Chanel collection
will be sold only at 76 Chanel boutiques around the world
and Bergdorf Goodman in New York. One of the new scents is
named 28 La Pausa, after designer Coco Chanel's home in the
French village of Roquebrune, where she entertained friends
such as Salvador Dali.
By introducing so many fragrances at once,
companies risk overwhelming shoppers. "We live in an age of
short attention spans," says Kim-Van Dang, president of KVD
Inc., a New York beauty-branding consultancy. "Do people
really have time to stand around and smell 12 fragrances
from one company?"
But the companies hope that launching
several scents at once will generate more buzz. "It's
important for brands like Chanel to remind consumers that
perfume is a special treat," says Laurie Palma, Chanel's
senior vice president of fragrance marketing. "It's not a
commodity like shampoo."
Write to Cheryl Lu-Lien Tan at
cheryl.tan@wsj.com
Fashion Questions?
Senior reporter Teri Agins, who has
covered fashion and retail for 18 years, is answering style
questions from readers in Personal Journal's new column. If
you have a question for Teri, please write to
askteri@wsj.com.

|