PARIS — Let the holiday price wars begin.
At least that was the rallying cry from France’s Marionnaud Parfumeries, which — as reported — on Wednesday launched a 20 percent price reduction on all products sold in its 560 domestic stores. The company claimed that with the promotion set to run through next Wednesday, it preempts the competition, which will give price cuts for the holidays.
So far, just one French perfumery was quick to respond — but in a covert fashion. The 319-door Nocibe chain hasn’t advertised a holiday promotion. But its managing director, Xavier Dura, confirmed that starting Thursday it is giving product discounts on a par with Marionnaud’s if a customer demands them.
In Italy, slashing beauty goods’ price tags by 20, 30 and even 40 percent has become a perennial favorite. In Germany, though price cuts in 2004 were less aggressive than in previous years, ongoing discounting continues to dampen beauty sales there. “In general, we’ll have generated about the same turnover [year-on-year], but with less profit because of discounts,” said a spokesman for Germany’s Beauty Alliance cooperative, comprising some 900 Parma-Aurel and Intercos perfumery doors.
A spokesman for Douglas’ 415 doors in Germany said the chain’s business is “consistent to slightly positive” and the company hopes to end 2004 with a small gain. Daniela Guardigli, marketing director of Italy’s 97 Douglas doors, said she expects to close the year with a slight beauty sales increase versus 2003, while Membo Lembo, head buyer for four-door Koine Perfumeries in Italy, said it’s been a struggle to maintain business on par with last year’s.
Elsewhere in Europe, however, the year-end outlook is much rosier. “Our fragrance business is doing exceptionally well,” said Tracy Van Heusden, perfume and cosmetics buyer at the U.K.’s five-door Harvey Nichols department store. “We expect total beauty sales to be up 9 percent.”
House of Fraser’s fragrance buyer, Nicola Tompkins, notes she has seen “significant growth” this year in the chain’s fragrance sales. And in London’s Liberty department store, perfumery buyer Angela Creasy estimates fragrance sales will grow by double-digits in 2004.
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Driving such fragrance sales, many say, is newness.“The business is dependent on new launches,” said a spokeswoman for Wir Fur Sie, the German perfumery cooperative of 340 doors. Among the flood of scents introduced in fall, a few designer fragrances were favorites.
In the women’s category, many perfumery buyers said Parfums Christian Dior’s Pure Poison, Yves Saint Laurent Parfums’ Cinema, Lacoste’s Touch of Pink and Prada’s signature scent were making a strong impact. For men, Giorgio Armani Parfums et Cosmetiques’ Black Code, L’Instant de Guerlain, Burberry Brit and Jil Sander Pure Men took the lead.
Back on the women’s fragrance bars in November, LVMH Moët Hennessy Louis Vuitton-owned Dior’s Pure Poison was doing well across all four markets. It ranked third in France’s 17 Printemps department stores, second in Douglas’ 415 German doors and in Beauty Alliance, the scent came in sixth. It was also showing promising performances in numerous other perfumery chains, as well. “The product pleases a lot,” said Chantal Merle, a buyer for Marionnaud in France, who added the scent’s advertising campaign, featuring model Leticia Birkheuer, contributes to its success.
Other buyers said Pure Poison benefited from the existing Poison franchise.“It’s [down to] the strength of the Poison brand, which was a very particular fragrance that people haven’t forgotten,” said Koine’s Lembo. Anjali Wadhwani, category merchandiser at Sephora’s nine U.K. doors, continued: “The launch of Pure Poison increased sales for the Dior brand as a whole.”
A buyer for Sephora’s 190 French doors went as far as calling Pure Poison and Yves Saint Laurent’s Cinema “two future pillars of perfumery.”
Indeed, Cinema is also topping women’s bestseller lists in many European perfumeries, particularly in France and Italy. The scent ranked first at Marionnaud and second at Printemps in November; it is also posting a very good showing at France’s Bon Marche department store and at Harvey Nichols. “Our client finds what she’s looking for [in Cinema],” said Veronique Boisseau, perfumery buyer at Bon Marche. “It goes back to the sources of Yves Saint Laurent in terms of its juice and its gold flacon.” Agreed Liliane Brunat, a buyer at Marionnaud, “It’s a real Saint Laurent.”
“Gold always works for Christmas,” added Van Heusden, referring to the color of the scent’s bottle and its metallic-hued outer packaging.
Also in the best-selling fashion-fragrance flock, but with a younger, sportier bent and lower price point, is Procter & Gamble Prestige Beauté’s Touch of Pink by Lacoste.Wadhwani said the scent was the strongest women’s launch in Sephora’s U.K. doors this fall. It ranked third in Germany’s Douglas stores in November. “It touches a young audience,” said Marionnaud’s Brunat.
Prada’s entry in the designer fragrance race has increased the competition in the field. The Italian brand introduced its debut fragrance this fall through its venture with Puig Beauty & Fashion Group. The scent is a contender, according to the Beauty Alliance spokesman, who lauded every aspect of the product. Prada ranked fifth at the chain in November.
“I think it will be the hit,” said Renate Engelmann, buyer and divisional manager for the beauty department at Germany’s KaDeWe department store. She agreed the scent’s juice and packaging are a plus, and added that the Prada name is a lure unto itself.
Echo Woman, the latest scent from Lancaster’s Davidoff license, is going strong in the brand’s native Germany. In November, it came in first at Douglas, third at Wir Fur Sie and was in demand at KaDeWe.
Also doing well in November was Armani Mania. The scent took the fourth spot at Wir Fur Sie stores and fifth in Douglas’ German doors. Tommy Hilfiger’s True Star ranked eighth in German Douglas doors in November and is performing well at KaDeWe and Sephora U.K.
This holiday season, as in prior years, winners on the men’s fragrance counter are making less noise than those on the women’s. “The market is stable, but the launches have been very low-key compared to the women’s market,” said Sephora U.K.’s Wadhwani. “There have not been nearly as many men’s launches as female launches.”
A change in guys’ buying patterns has been noted, as well. “They don’t want commercial brands anymore,” said Koine’s Lembo. “They want to go niche and prefer fragrances from L’Artisan Parfumer and Acqua di Parma, and English brands like Creed.”
That being said, some of the major fall men’s fragrance launches are flying off shelves. Among the winners is Armani’s Black Code, which is ringing up strong sales at Bon Marche. “It’s a very good masculine fragrance,” said Boisseau, lauding the scent’s classic black flacon.
The fragrance also ranked third at Wir Fur Sie and eighth at Printemps in November. “Black Code has been very successful,” said Wadhwani, who said customers are drawn by the scent’s ad, featuring model Enrique Palacio.
L’Instant de Guerlain Pour Homme was also among the men’s winners, particularly in France. “It’s a real compliment for L’Instant de Guerlain [women’s scent], which also profits from newness in the line,” said the Sephora France spokeswoman. “It’s one to follow, with a beautiful juice, beautiful packaging — a real Guerlain.”
Inter Parfums’ Burberry Brit for Men got off to a good start, too. “It is performing strongly, proving there is still a lot of mileage in the Burberry brand,” said House of Fraser’s Tompkins. At KaDeWe it was also showing good results in November.
Lancaster’s Jil Sander Pure Men scent has had a positive turnout. In Germany, it came in third place in Douglas and ranked among Wir Fur Sie’s top 10 men’s scents in November. The latter’s spokeswoman said marketing activities surrounding the fragrance — including advertising, a mailing and competition — helped bolster the launch.
Beauté Prestige International’s L’Eau Bleu d’Issey is also working well at KaDeWe, according to Engelmann.
Back in the women’s market, perfumery buyers discussed other products making waves. They highlighted P&G-owned Wella’s latest fragrance for Gucci, called Gucci Envy Me. “[It works] because customers really liked the brand’s previous launch, so they were more disposed to buy the new fragrance,” said Marisa Guzza, manager of Coin’s Milan flagship department store, speaking on behalf of the chain’s 40 doors.
One item seemingly well-received on the Continent is Beauté Prestige International’s Narciso Rodriguez signature scent, which was introduced in numerous European countries this year.“It’s a phenomenon,” said Douglas Italy’s Guardigli. “Customers are asking for it all the time.”
Other names for women in the news are Marc Jacobs’ Blush and Acqua di Parma’s Iris Nobile, buyers said.Versace’s Crystal Noir was doing well in Italy’s 18-door Mazzolari perfumery chain, according to its general manager, Antonella Mandelli.Beauty Alliance’s spokesman said windows for the fragrance, which were paper-covered except for peepholes, attracted attention.
Calvin Klein’s Eternity Moment sold well in KaDeWe in November and Nina Ricci’s Love in Paris was the eighth bestselling women’s scent at Printemps that month.
— with contributions from Melissa Drier in Berlin, Stephanie Epiro in Milan, and Ellen Burney and Nina Jones in London