Traditionally, marketing for luxury fragrances has focused mainly on the effects of the scent itself – on the wearer and those around him or her. Modern marketing, however, appreciates that newer fragrances are more androgynous in their appeal, and are chosen not just because of the way they smell, but also because of the ethos and values behind the brand that makes them. Today, a brand’s popularity is driven by factors as varied as its health & wellness and sustainability credentials to the inclusivity and diversity of its advertising.
Naturally, it’s impossible to ignore the additional impact of the global cost of living crisis and the multiple knock-on effects of the ongoing war in Ukraine. There’s no doubt that rising costs are creating a greater demand for “bougie on a budget.”
Gen Z-ers in particular are famous for being bargain lovers. As the first digital-native generation, they are happy to spend significant time scouring the internet looking for a brand’s best offers. In fact, over half will only buy their favourite beauty brands when they’re discounted or on some kind of promotional offer (Source).
The truth is, with the cost-of-living crisis still biting globally, all but the very top consumer echelons are looking to make the most of their money when selecting a fragrance – while still enjoying the quality they associate with their preferred luxury brands.
Savvy shoppers want value for their beauty spend, and those brands that know how to deliver it will snag the lion’s share of the market.
But price sensitivity isn’t the only influence on consumer purchases in the beauty industry.
Product quality is still a crucial factor, with consumers expecting high-quality products that deliver on their marketing promises and reflect the ‘luxury’ associated with the brand. Modern expectations extend beyond the traditional scent of the product, the bottle it comes in, and its packaging to deeper considerations such as the ingredients used, and how the scent is manufactured.
And of course, there’s no getting away from the pervasive presence of social media influencers and other celebrities, particularly among the younger generations.
Staying ahead of the curve
All these factors can make for a tricky market for luxury fragrance manufacturers. Not forgetting, of course, that in addition to an increasingly well-informed and demanding customer base, they also have to contend with massive competition within the industry itself.
Thousands of new fragrances are launched onto an already saturated market every year. In 2022 alone, 3 000 new scents were introduced (Source).
And with the bulk of marketing budgets being thrown behind the promotion of these new, shiny lines, the options for older brands become more limited.
Slower sales, lower ROI and, ultimately, an unprofitable drain on warehouse storage.
Unless that is, brands find innovative ways to optimise their portfolios to unlock untapped revenue potential in their underperforming lines.
This is exactly what Beautynet does.
Maximise the value of your luxury beauty brands
Beautynet’s Strategic Sales Programme is an end-to-end solution that unlocks potential in your luxury beauty brand portfolio.
The real, well, beauty of the programme is that it offers an incremental revenue stream whilst giving you complete control over your brands – and all without impacting your existing distribution channels.
By identifying untapped opportunities within your portfolio, as well as new and unexplored markets that would normally fall outside a brand’s traditional marketing channels, we can help your business reach a whole new demographic of customers. Customers who, as we already know, are constantly looking for cost-effective ways to enjoy their favourite fragrances.
This is just one of the ways in which we not only extend the profitable lifespan of your underperforming fragrance lines, but also find innovative new sales avenues that deliver forecastable, incremental revenue far into the future.
We’ve realised incredible results for our customers, many of whom have seen additional revenue of millions of Euros in just a few years – all without compromising on their brand equity.
This approach also dovetails perfectly with the modern consumer’s demand for increased sustainability in the products they purchase.
Although the beauty industry as whole has historically been very discreet about its internal operations, all indications are that sustainability reporting will become mandatory for all businesses in the near future.
This will drastically change the game for luxury brands, and it means there has never been a better time to multiply their efforts and increase their transparency.
Finding alternative markets and extending the traditional lifespan of fragrance lines is the ideal solution for luxury brands looking to unburden themselves of their underperforming brands in a sustainable way.
Not only does it have the potential to significantly increase the revenue-generating potential of the brand, but it also plays directly into the hearts and minds of cost- and environmentally-conscious consumers looking for brands whose values align with theirs.