Since the pandemic hit, home-bound customers have been discovering solace in little luxuries. Scent has been a standout class: Fragrance sales in the US hit $954 million in the first quarter of 2021, per NPD Group, an 82% enhance from the prior yr and a 35% soar from 2019. Last week’s earnings reviews from Coty and L’Oréal concur. The fragrance craze is actual.
For the second quarter ending December 31, Coty’s income jumped 12% to $1.58 billion. And its US status fragrance sales increased by greater than 40%, with nearly all manufacturers—like Gucci and Burberry—contributing to the growth.
- In China, fragrance noticed double-digit growth, boosted by new perfumes on the market.
Pleasure precept: Meanwhile, for its fourth-quarter and full-year 2021 earnings, L’Oréal’s sales elevated 15.3% to simply over $37 billion. Fragrances inside its luxe division skilled a 27% YoY sales soar.
During the earnings name, Cyril Chapuy, president and common director of L’Oréal Luxe, chalked the success as much as “new shopper behaviors…centered round pleasure and well-being.” It’s a tough level to argue, particularly as extra retailers lean into wellness, from intercourse toys at Sephora to Saks’ on-line Wellness Shop.
L’Oréal and Coty are removed from the solely firms cashing in on the fragrance growth. Dolce & Gabbana is bringing its cosmetics and fragrance operations in-house, with the hopes of doubling its share in the fragrance sector. Even the candle firm, Boy Smells started a fragrance line final yr.
Looking forward…What customers need out of a bottle has modified. And the fashionable promoting level, based on the Business of Fashion, smells like gender-neutrality. The concept is that you simply’ll catch extra noses with a wider web.—JG