Niche fragrances to become more popular

According to Nicholas Micallef, the rising popularity of niche fragrances is the first noticeable trend for this year. “Consumers will continue to look for an effective identity and ability to relate emotionally and personally to a fragrance and in line with this, industry players are formulating fragrances with alternative ingredients,” says Michallef, mentioning sea salt and saffron among such ingredients. Estée Lauder’s recent acquisitions of Le Labo and Frédéric Malle illustrate the attempt of big players to tap into this market segment.

However, the explosion of niche fragrances in the market also means that competition is intensifying. In order to address this challenge, Nicholas Micallef recommends fragrance players “to sustain their niche intent and avoid commoditising the scent.

Increased personalization

Increased personalization is the second trend identified by Euromonitor International. Referring to the recent My Burberry launch by Burberry, which allows consumers to monogram bottles of the fragrance with their initials, Micallef notes that brands increasingly allow consumers to personalise fragrance bottles. We recently pointed out similar initiatives from Serge Lutens, Atelier Cologne and Guerlain.

Innovations in retail experiences

Eventually, the third trend pointed by Euromonitor International is the increased competition between department stores and specialized retailers to enhance the consumer purchasing experience through new retail formats. According to Micallef, an illustration of this trend is the fragrance library opened at New York’s Saks Fifth Avenue. In the library, consumers can learn more about fragrances and the heritage behind them. Euromonitor’s analyst also points out standalone stores of brands such as Chanel and Dior where consumers can find a wide product mix featuring key heritage fragrances, as well as fashionable new items or best selling ones. We could also add the exclusive collections that top fragrance brands have been developing during recent years.

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