Mass trades fragrance for bath scents
Is the smell of money in the air for the fragrance market? Perhaps.
Still rebounding from declines suffered during the recession, the fragrance market is poised for growth through 2018. However, research by Mintel cautions that the mass fragrance market will likely continue to struggle as prestige or niche scents drive growth.
Echoing the sentiment, data provided by IRI shows that sales of women’s fragrances declined nearly 6%, and men’s cologne declined nearly 7% during the 52 weeks ended Dec. 1, 2013, at total U.S. multi-outlets.
There are likely several reasons for the decline at mass. Aside from economic conditions and market saturation, the fragrance market at mass also is reeling from the influx of scented bath and body products like body spray, scented lotions and shower gels. While these products may not fall within the traditional fragrance category, scent is one of the key drivers for use. In fact, IRI data indicates that sales of men’s body mist rose about 2% during the 52-week period, with Unilever’s Axe brand taking the lead.
The good news is that the interest in fragrance remains strong, and those manufacturers and retailers who embrace new forms, benefits, packaging and retailing stand to benefit.
Mintel research found interest in:
- Fragrance box subscriptions: This can be a great way for consumers to easily get a variety of scents;
- Refillable packaging: This was found to be especially popular among young women looking to save money and be environmentally conscious;
- Customized packaging: This option enables the users to reflect their own sense of style, potentially building stronger brand loyalty;
- In-store education classes; and
- Fragrances that can be sprayed on clothing or other fabric.
“New innovations give retailers the opportunity to rethink merchandising, particularly in the struggling mass fragrance market. Finally, smaller-sized and other formats, such as gels and solids, could carve out opportunities to attract more budget-conscious consumers who may not be able, or willing, to splurge on full-sized products,” Mintel noted.
Study: Beauty brands turn to YouTube
YouTube is transforming the beauty space. Incorporating YouTube into Web and commerce initiatives and leveraging YouTube’s independent beauty personalities can unlock significant opportunities for brands, especially niche players, according to recent research by Pixability.
In fact, according to the big data software company, YouTube’s top 25 beauty vloggers possess 115 times more subscribers and receive 2,60070 more comments on average than beauty brand channels. In addition, 9770 of the conversations around beauty and brands on YouTube are controlled by vloggers, haul girls and other beauty content creators.
“Brands that mistakenly treat YouTube as a quasi-television station should not be surprised by dismal ROI. Those that embrace YouTube as a critical digital marketing and communication medium, however, will see outstanding results,” stated Rob Ciampa, CMO of Pixability.
To see the charts, click here.
Aveda founder Horst Rechelbacher dies at 72
MINNEAPOLIS — Horst M. Rechelbacher, the founder of Aveda and a self-proclaimed “student” of nature, died on Feb. 15 at his home in Osceola, Wis., after a battle with pancreatic cancer. He was 72 years old.
Rechelbacher was a pioneer in the now-mainstream sustainable health and beauty industry. He founded Aveda in 1978 with a vision for plant-based products. He grew the company into a powerhouse, and led the movement toward the use of organic ingredients, fair-trade sourcing, aromatherapy and recycled packaging along with numerous other innovations.
Born in Klagenfurt, Austria, on Nov. 11, 1941, he began apprenticing as a hairdresser at 14. He came to the United States and specifically to Minneapolis in 1964. After being injured in a car accident, he remained in Minnesota to take care of his medical expenses and opened his first Horst & Friends Salon in 1965. He first introduced his line of shampoos in 1977, the first plant-based beauty line, which became Aveda. His legacy includes the Aveda Concept Salons and the Aveda Institute and ushering in a new consciousness in the beauty and wellness industry.
When Rechelbacher sold Aveda to The Estee Lauder Cos. in 1997, it was then the largest sale of its kind. His focus then shifted to Intelligent Nutrients, where he continued to pioneer in the beauty industry — this time focusing on certified organic products using food-grade ingredients and plant stem-cell science, and continuing his life-long vision of creating safer, healthier products for consumers and the planet. In 2012, he turned the co-presidency of the company to his longtime partner Kiran Stordalen and daughter Nicole Thomas.
Rechelbacher was recognized as one of the most notable Austrians living in America by the Austrian press, along with Arnold Schwarzenegger and Wolfgang Puck. Vanity Fair magazine honored him as one of the most influential environmentalists in the United States in 1995 and again in 2005. He is one of the three original founders of Business for Social Responsibility, which focused its mission on business and the sustainability of all living species. In 2004, he became a founding member of the Organic Center, a nonprofit dedicated to organic education, research and promotion. The North American Hairdressers Association honored him with the Lifetime Achievement Award, and in 2007, the International Congress of Esthetics and Spa presented Horst with the Crystal Award. Rechelbacher also received the Rachel Carson Award for a Lifetime Commitment to Environmental Ethics & Integrity. Also in 2007, the Spa & Salon Professional Association honored him as an Industry Innovator and Legend for his lifetime contribution to the cosmetology industry. The Twin Cities Business Magazine inducted Horst into their 2008 Minnesota Business Hall of Fame, acknowledging his contributions and recognizing him as one of the states’ most accomplished business leaders of all time. In 2009, the President of Austria awarded Horst the "Decoration of Honour in Gold for Services to the Republic of Austria."