How Much Will the Niche Market Bear?

The news on the discontinuation of some Serge Lutens fragrances we broke on these pages as well as the Guerlain discontinuations we also had the honerous duty of introducing to you a while ago have prompted me to think long and hard about the fragrance market and its trajectory ever since the Internet became a major player from 2000 onwards; first with budding perfume discussing fora and later in 2005 with the emergence of the first fragocentric blogs. Nine years and counting later things have profoundly changed and the scenery is altered.
Everyone jumped on the bandwagon of niche perfumery and with aspirations of artsy-fartsy pretence about how "perfumery is an art too" (Chandler, if only you knew what a monster you created!) they have been indundating the market with overpriced dreg ever since. There is simply TOO MUCH JUS OUT THERE!! Whether it's for the best or the worst I am leaving this up to your intelligent discussion in the comments. But first let me present some facts and some trivia for your consideration.

First there were the Hermessences in 2004: A major luxury player who was active on the fragrance sector as well decided to do the unthinkable ~present an exclusive line of top-tier scents reserved for their interior boutique only circuit. Guerlain had their own plan upon refurbishing their flagship store in 2005, plans which materialised and some which were almost cut mid-stream (Il Etait une Fois reissues, I'm talking to you!). Soon enough ~it seemed to me before the word Hermessence had dried on the staff memo~ Chanel pulled an Hermes as well, 3 years ago almost to the day, with their Les Exclusifs to be sold exclusively at Chanel boutiques. The two luxe lines were received with accolades, enthusiastic bises in a very European manner and profound respect from the whole perfume community, even if there were a couple of critical voices on the concept and coherence of the thing.
Just last year both "exclusives" were renegated to online shopping, making the acquisition of a coveted haute bottle approchable at the click of a mouse to anyone in upper Minnesota who had the requisite checkings account. Where's the exclusivity factor?

Several established brands followed (Dior Prive, Lancome La Collection, Tom Ford Private Blend, Lauder the Private Collection Line fragrances trio), and the few remaining ones came out just recently with their own "exclusive" sub-line within the line, cashing in on the hen who lays the golden eggs (or so they thought): Cartier Les Heures de Parfum, Van Cleef & Arpels Collection Extraordinaire, Dolce & Gabbana Anthology. They employed top tier perfumers, they advertised intelligently by word of mouth, they even brought original "ideas" for inspiration. (The Tarot deck for D&G, for Chris's sake. What's next? The Mayan calendars of doomsday?) The results? Rather lukewarm reception to varying degrees of temperature nuance. Even though there are a few specimens in there which are indeed great (especially in the first two brands), the idea seems tired, been-there-done-that and the audience doesn't seem to go back for much more... Not at those price points in this economy at least!

Uber-luxe brands positioned themselves in a place of de juro superior price point (often with the corresponding quality in the formula): Amouage and By Kilian are good examples. Recently By Kilian has introduced the smaller traveller bottles and the refills in order to appeal to the less cash-flowing clientele. Smart move! Still not every release can be received with enthusiasm. Writes Pam from Olfactarama regarding their latest Back to Black, giving it 2 stars out of 5: "A combination of pipe tobacco, cherry syrup (maybe cherry pipe tobacco?) and vanilla. After 2 or 3 hours only vanilla; after six it's a generic heliotrope/vanilla with a slight Play-Doh note. I don't know what all the fuss was about". One can re-invent the wheel so many times, I guess.

Several smaller players emerged lately as well, often with erratic results: French niche line Ego Facto from Pierre Aulas debuted at Marionnaud in France with 7 perfumes: 4 for women and 3 for men and even employed acclaimed nose Dominique Ropion for their Poopoo Pidoo fragrance (inspired by Marilyn Monroe no less) as well as other famous perfumers for the rest. One of my online friends with a discerning nose, who also posts on several fora & blogs, TaraC proclaims: "I just tried all 5 of the Ego Factos yesterday and didn’t like any of them. They all smelled like generic commercial synthetic swill on me… I guess I’m not the target customer!"
Smell Bent on the other hand is a new LA-based indie niche line, which deputed with 10 fragrances (!) at a low price point. A NST commentator calls them "pretty gimmicky too". MakeupAlley reviewers and regulars have varying opinions on them.
What's up? Are then people able to judge independently of the price asked? Big surprise, I guess they are! On an interesting spin of events a graphic outlining perecentages (according to a Sanford C. Berstein survey of 834 U.S. consumers conducted over a two-week period in mid-December) of people who have traded down in various consumer product sectors appeared in The Wall Street Journal. Some include: 34% traded down in laundry detergent, 31% traded down in kitchen paper twoels, 15% traded down in toothpaste & what is within our scope...14% traded down in perfume/cologne! Fascinating, no?

Please nota bene at this point that I have not (yet) smelled any of these fragrances from the two companies above so I cannot form a personal opinion on them. But the saturation of the market does leave a perfume writer with something less than frenzied desire to sample the latest thing, doesn't it? A sense of boredom sets in and samples lie there untouched. But let's forget for a second that this is a second job here, what about the average perfume lover who isn't necessarily writing about perfume: Can the market bear so many lines, so many brands, so much jus? Niche was the only sector in fragrances to show a slight increase amidst the recession. However this is slowly changing, exactly because the consumer is catapulted with "news" and "launches" daily. And the general trends direction isn't sounding too good either.

According to reportage by Jason Ashley Wright on Tulsa World "2010 is the year of the celebrity fragrance, said Megan Hurd, a beauty expert for Amazon.com. Not only is Kim Kardashian’s anticipated first scent hitting shelves this month, so is Halle Berry’s orchid-and-citrus- inspired scent. Others include Beyonce’s (in February) and Sarah Jessica Parker’s third fragrance, SJP NY (early spring). People are gravitating toward lighter, more airy scents, said Pat Hudelson, a fragrance expert at Saks Fifth Avenue in Utica Square. Last month’s deep-freeze temperatures “kind of put everybody in a depressed state,” she said. “Everybody needs something new and kind of fun.”
Some show increase in their stakes even amidst the lagging economy: "Inter Parfums Inc. announced that net sales for the fourth quarter were about $113.6 million, a 13% increase from $100.4 million in the prior year quarter." (to note they distribute Van Cleef,Burberry, Lanvin, and will be collaborating with Montblanc soon). They're bringing out Burberry Sport fragrance line this month and Oriens, a female fragrance line by Van Cleef & Arpels this coming March, so obviously the Van Cleef brand needed some reboosting. (Amazing if you think of it, since La Collection Extraordinaire practically just launched, it was only last autumn!).
Some show decrease and pleas for help: "Mr. Burkle's investment firm Yucaipa Cos. bought up a large chunk of Barneys' debt late last year and has offered to invest at least another $50 million in the high-end fashion chain via a loan deal that would leave him owning 80% of Barneys' common equity. The remaining equity would be held by Barneys' current owner, Istithmar World Capital, the investment arm of state-owned Dubai World" [...]The move is the latest play for Barneys, a swanky New York apparel retailer that has struggled since being taken over by Istithmar just before the recession hit".[source] And some propose a completely different approach still: "Some luxury brands are finding that single-sex boutiques boost the bottom line. While it's not exactly a man's world on Main Street, luxury brands are increasingly offering greater exclusivity in men-only shops" [source] Cherchez l'homme!

So what "fruits" will the future of perfumery, especially niche, bear? Let's hear it from you!

Photo of Audrey Hepburn by Richard Avedon via manishtama blog. Still from Greek film "Rendez-vous at Corfu" (1959) via grcinema.wordpress.com

Valentino Perfumes Bought Out by Puig

Nina Ricci, Carolina Herrera, Paco Rabanne, Lowe, Massimo Dutti, and Prada perfume sectors will be joined by Valentino perfumes under the umbrella of Spanish Fashion & Beauty Group Puig starting 1st of February 2011. The news of the international fragrance licence obtained (which will span many years) has been just announced right when the Wall Street Journal publishes an article about Procter&Gamble putting an end to their collaboration with the Italian brand named after the famous designer.

According to the WSJ the reason has been underachievement. "P&G produces a number of fragrances for Valentino, which is owned by U.K. based private-equity fund Permira. But sales never reached the heights of P&G's other fragrance licenses, including those with Gucci Group and Dolce & Gabbana, which last year launched a makeup line.[..]P&G wants to weed out underperforming brands to focus on its more competitive products. The company has been moving into luxury beauty products, including the expansion of skin care line SK-II and its acquisition of high-end men's grooming lines such as The Art of Shaving".

Created in 1960 by Valentino Garavani, the firm operates in 70 countries through a network of 1250 points of sale, of which 66 are stand-alone boutiques. Puig is no stranger to an illustrious past either tracing their history to 1914 when they began their operations in Barcelona and currently employiong 3500 employees turning out an impressive 1000 millions of euros in 2009.

Although at the moment of the WSJ announcement there was no official statement from either the P&G or the Puig side, we have just heard from both this very morning: According to Stefano Sassi, general director at Valentino, the choice to work with Puig had to do with "their experience on the luxe sector and their attachment to quality". Mr.Sassi went on to emphasize how important he considers not only Puig's prospective aid to reach the house's goals commercially, but also to cement the notoriety of Valentino fragrances on the market's consciousness. The move aims to extend the potential of Valentino products for long-time objectives and to consolidate its brand name, while Marc Puig, CEO of the group Puig adds that the acquisition of Valentino will enrich their portfolio with "an image that communicates a fantastic potential".
The crux of the matter is that Puig is much better to Valentino than P&G, due to their more glamorous and more beauty-oriented approach. The fragrances produced are not bad either, while there have been some concerns from perfumephiles over the treatment that P&G has reserved for some of their own brands, such as Jean Patou and their diminishing line of fragrances.

This latest move can only be indicative of a greater shift happening at the luxury market right now, as we had tentatively mentioned about the commotion at LVMH the other day, what with their perfumers talking up about perfumery restrictions at last and Tony Blair posing as a strong candidate for business counseling services to them in order to open up new markets. Which those markets will be and how sustainable the luxury sector will be in them is matter for discourse.

pic of Stefano Sassi of Valentino via fashiontimes.it

Sign of the Times (and a Little Rant)

When reading upon perfume boards one comes across an involved discussion by numerous perfume lovers about fragrances that could be aptly described by the rather ghastly term "fruitchouli", you realise that something is quite rotten in the kingdom of Perfumistadom! You might expect Tina Turner to get out the saxophones and break into "We don't need another hero fruitchouli" (beyond Thunderdom) and if you feel that way I can't blame you; who can? Three quarters of the market (at least the mainstream sector, but not exclusively) are inundated by the plague of fruitchoulis that walked the path that Angel paved and later Narciso Rodriguez diverted a bit. Talk about a snowball. But let's start at the top!

The very term "fruitchouli" was coined by an undentified perfume lover Mbanderson61, exasperated by the abysmall unoriginality that the fragrance market displays for some years now, churning out a flood of releases that mimic each other in a frenzied pace. The two main elements seem to be sweet fruity notes (a sad remnant of the anemic 90s where pastel fruits were left to substantiate "airy" or "watery" notes) and the newly refound note of patchouli, buffed and sanitized out of its hippy references and ready for its close-up, mr. De Mille. Hence the brilliance of the coinage of "fruitchouli"! It's surpemely evocative of the current trend.

Personally I would differentiate between the archetypal Angel and its clones/upstarts/homages (Angel Innocent, CK Euphoria, Coco Mademoiselle, Lolita Lempicka, Flowerbomb, Prada, Cacharel Liberté, Miracle Forever, Hypnôse and Hypnôse Senses, Nuits de Noho, Coromandel, New Haarlem...) and some other popular fragrances with patchouli, a family inaugurated by Narciso For Her (namely Lovely, Midnight Poison, YSL Elle, Gucci by Gucci, Chypre Fatal, Citizen Queen, Lady Vengeance, Perles de Lalique, Agent Provocateur...).
I would classify the former into gourmand orientals ~they're generally quite sweet and the fruitiness is more distinct, often underlined with vanilla/caramel/marshmallow/foody notes etc. The latter I would classify into floral woodies/"nouveau chypres" (technically the "new pink chypre" genre IS a floral woody; patchouli & vetiver base is considered a woody base). Michael Edwards classifies them in a seperate family within chypres (mossy woods) as well.

Making a conscious effort to sample and think about several new releases lately, I found myself bored beyond belief at the sameness encountered and my reluctancy to even bother putting a few words together for the benefit of the casual reader searching for opinions on the latest; such was the disappointment and ennui. From the uniform look, uniform style of the new Anthology line by Dolce & Gabbana to the inoffesive lappings of sweet nothings of Ricci Ricci (pity, the bottle is fabulous!) to the vinyl and "flat" rosechouli of the new Parisienne, all the way through the generic Idole d'Armani, I didn't feel myself moved beyond a cursory spray or two. When you have dedicated a personal site to fragrances and are writing on them professionally as well, this does forebode very gravely...
It's not the lack of artistry or technique in the execution of an idea, as some releases are competent. It's the idea itself that has become mundane, tired, overdone, vulgar; even though it seemed like a nice concept all those years ago! Like waking up in some Heaven where all the girls and boys look like Grace Kelly and David Beckham with a perpetual smile on their faces and delicious macrobiotic 4-course food is served at 12 sharp by white-gloved valets. After a while you just long to bring a scruffy Johny Depp and his Nabisco saltine crackers in bed, don't you!

Perhaps the most brilliant suggestion and new term/classification proposed comes from Perfume of Life's long-time member Mando who exclaims humorously (and expectantly): "I think the next wave should be "bootichouli" - chypres heavy with civet accents". If Beyoncé and Jennifer Lopez have bootylicious down pat and Kim Kardashian is famous for her derrière as well, then let's all pray that "bootichouli" can be the new trend in fragrances. Why not? It does present some technical problems, as civet is not exactly the most easy or ethical essence to harvest, but in an age where everything can be replicated in the lab using nano-technology-this and infra-technology-that, the illusion becomes much more of a reality (And there is already synthetic civetone). But that's besides the point really: The point is enough is enough! There is a ripe audience for a skanky new genre and we're cornering an increasing share of the market. Please hear us roar!

Art: Baloon Dog by Jeff Koons via flavorpill and
photo by Jemima Stelhi via files.list.co.uk

Eau de Celebrity: Waning, waning...?

In the last 10 years everyone who is recognised a bit more widely than their schoolmates, their own mother and possibly their hamster seems to have issued a fragrance bearing their name in gilt lettes on bottles produced by Parlux and Coty (mainly). The phenomenon nicknamed "celebrity fragrances" had accumulated epic proportions in the last couple of years when even reality game players had their own eponymous scent on the market (no disrespect to poor late Jane Goody), adding to a massive churn-out in the class of the hudnreds. Thankfully (to many, ourselves included) it seems that, despite Beyonce, Kim Kardashian and Peter Andre all having a scent in the works, the trend is on its waning phase.

"[...] it has recently been revealed by retailers that these products don't have the longevity of classic fragrances and that customers actually don't want to smell like someone off Big Brother after all. Jason Zemmel, founder of online discount store halfpriceperfumes, said: “It’s a fickle market with celebrity scandals and poor album sales having a direct effect on sales of celebrity scents. It used to be the biggest stars that brought out a scent but we now have all manner of C-listers churning out fragrances whenever they have something to promote.”

Adding that:

“Whilst some, like the Britney Spears range sells well, we’ve found many have shunned the scents of lesser known celebs. We’re now seeing resurgence for classic scents such as Christian Dior, Elizabeth Arden and Chanel, that have been around for years,” said Zemmel.

Parlux is on record for losing $4.3m last year and a reported $2.5m loss in the second quarter of this year. Whether the economic recession is having any relation to the buying patterns of consumers who would rather spend their money on something they really perceive as necessary (or as prestigious, when they do spend over budget)is not accounted for. It does seem that overexposure to specific names has created satiation and boredom and that only strong names are surviving, such as the Jennifer Lopez empire of scents or the Beckham duo.
Shall we all heave a collective sigh of "oh good!" and forget about the overexposed faces that greet us with their candid shots on the front pages of Hello magazine? Here's to hoping! Or at least that from the collective stink only the nice fumes (no matter how few) will surface victorious and sustain their life on the shelves.

Read the full article on Body Confidential.

Victoria Beckham pic courtesy of American Elle magazine.

Back to the Future (of Fragrance this time)

Shaping the market of scent is not within our capacity, however mapping it is. And it seems like our antennae have been tuned to all the talk lately about a shift in consumers' tastes and a seismic change due to the increased information received by the Internet. This manifests itself with many signs, which we will tackle one by one.

First of all, the reign of "celebrity scents" is coming to a slow end. (Those are fragrances bearing the name of a famous person, produced by a couple of companies excelling in that brief, like Coty or Parlux). It's not simply that perfumistos, people with an acute interest in fragrance, are getting completely jaded and being vocal about it on online fora. It's also that there is simply too much celebrity juice out there.
In the article "Celebrity Scents Fall Out of Style: So Over It" by Carmen Nobel in Thestreet.com the author stipulates that "Tagging a perfume with the name of a celebrity goes back to the days of Coco Chanel. But the trend got a little out of control after the success of Jennifer Lopez's Glow, launched in 2002". After everyone and their grandma and their grandma's cook having a celebrity scent in the works, from athletes to actresses/musicians and authors all the way to reality-games-participants, it's getting a little tired and lots of people do not see the glamour or the relevance with certain celebrities.
The stats are a little shocking and show the proliferation of what seems like an oversaturated market: "In 2005, there were some 20 celebrity fragrances on high-end department store shelves, and by 2008, there were at least 47, according to Karen Grant, a beauty industry analyst at the NPD Group, a market research company in Port Washington, N.Y. And those were just the fragrances in the "prestige" and "premium" brackets, those that cost at least $50 and upwards of $75 per bottle, respectively."
The analyst also foreshadowed that the celebrity scents which would do well in the near future would be only the ones which are packaged in fancy presentations (Harajuku Lovers being an example)

But people are also avoiding perfume altogether sometimes: Too much juice sometimes produces a saturation across the boards. In an quizzical article on the Frisky fragrance shizophreniac (by her own playful admission) Erin Flaherty prompted by a no doubt exaggerated statistic (NB statistics can be manipulated the way one wants them to) intelligently discusses whether fragrance as a concept is knowing diminished popularity lately: Has perfume gone out of style? "When it comes to women and our relationship with fragrance, there’s something I’ve noticed lately, and it makes me wonder how many women out there wear any perfume at all? [...] the whole douse yourself in perfume before you leave the house thing hearkens back to another era. A lot of 20- and 30-somethings I know just don’t bother.[...] A recent NPD report showed that prestige fragrance sales in the U.S. are down 10 percent. This could just be due to the recession, but still. There’s also our generation’s obsession with individuality: Maybe we don’t all want to smell like the latest designer fragrance (or God help us, Britney Spears), and are more likely to create our own signature mixes using oils, a combination of perfumes, or are just content with our bodies’ own natural scents. Or maybe it’s just allergies".

On the other hand, there seems to be an indirect marketing strategy in which the familiar and old stanby, the fashion designer turned fragrance-churning big name, is used again in new and ingenious ways to provoke the response of a more aware consumer who is leafing through glossies like always, but is also interested in online information. Evidence: the latest column by Tina Gaudoin in the Wall Street Journal Magazine which tackles the Italian designer Giorgio Armani and his illustarted talk about scents and sensuality. (I admit I had no idea he had been in medical study at any point in his career! The things one learns...But I do adore capers!!!) Are the people reached that way more likely to sample his latest venture, Idole d'Armani?

On the same issue of the same medium there is another interesting piece about the most prized spice, saffron, a literal stamen by stamen worth of gold foil due to the labour-intensive harvesting. Saffron notes in fragrances have known a surge in niche releases and the reason is not hard to see, judging by the culinary effect the red spice possesses: "Comparing saffron to other culinary objets d’art is a nonstarter. Drugs are more appropriate. Too much and a dish overdoses on flavor. In excess, it can even become toxic. “Eating handfuls of raw saffron will shut down your liver,” Sharifi warns. But a tenth of an ounce, say, what Andrés might add to a saffron cake, can carry a dish on its shoulders, brightening the color to a golden orange and cutting the sweetness of a dessert with its grassy, metallic punches. (And just a dash will add at least a few dollars to the price of any dish.)" Would the popularity of exotic ingredients in cuisine result in an increased awareness of "scentsorial" experiences out of the perfume bottle? After all, smell and flavour are closely entwined and the discenring perfume wearer is often an equally investigative, adventurous foodie. Could these old, nay, ancient ingredients (crocus from which saffron is extracted was known by the prehistoric Aegean populations) become the new items to replace the pink pepper, the iris and the ~synthetic, by now~ oud which have taken the niche and mainstream market by storm these past two-three years? Cheers to a new route chosen, if so, and I raise my glass to this back to the future!

So the baton is on to you: What do you notice in your neck of woods about fragrance trends? Do people wear fragrance or avoid it, what is getting chosen most, are people inquisitive about new exotic or perhaps old-fashioned scents?

pic credits: bloogoscoped.com, aphrodisiology.com, girlinaglasshouse.blogspot.com

Charlotte Gainsbourg for Balenciaga's new perfume: the triumph of jolie-laide!

Now there's a cool face to front a fragrance!! I am almost jumping up and down from joy at the confirmation of news that Charlotte Gainsbourg, muse for Balenciaga's creative director Nicolas Ghesquière for some time now, will be fronting the new fragrance of the house coming out world-wide February 2010.
French actress and singer Charlotte Gainsbourg, the daughter of Jane Birkin and "bad boy" of French music Serge Gaisnbourg is taking the baton from her mother (who had commissioned perhaps the most daring "celebrity" scent, the skankilicious Eau de Rien to Miller Harris, lovingly reviewed here). What strikes me as particularly hopeful is that in Charlotte Gainsbourg we're breaking from the "mold effect", which I had playfully alluded to while talking about other releases with less promise (such as Kasia for Idole d'Armani), being the very embodiment of what the French call jolie-laide: a woman with a non classically pretty visage that manages to exude terrific charm nonetheless. There is a lithe and delicate quality about her, the "daddy-long-legs limbs" of her (gorgeous) mother coupled with her hippy-chic hairstyle as well, but also jarringly the cubist-friendly features of her father superimposed on the canvas. The total is unexpected, graceful in a way that defies definition and intriguing into casting a second and a third glance. In essence (no pun intended) a super-cool choice to front a fragrance, whose very charm lies on mystery and the intrigue it creates into questioning "who is this wafting stranger?" She also has the ability to metamorphosize into more accepted perceptions of sexy which is not without merit in the shallow industry of the glossy arts. (watch her styled by Carine Roitfeld photoshoot for Vogue Paris Dec.2007)

Charlotte, fresh from Cannes win of Best Actress with the film Antichrist by cineaste rebel Lars von Trier intimated to WWD: "I have the feeling that the house of Balenciaga has become my second home." Ghesquière, who described Gainsbourg as "one of the most inspiring girls in the world" and "really representative of what France is today," declared she personifies his upcoming fragrance. "Her unique sense of style, her graceful and intense talent have always been very inspirational for me," he said. "This fruitful and long-standing relationship Charlotte has with me and the house of Balenciaga gives all its meaning to this project."

On the other hand, the handling of the Balenciaga franchise by Coty is foreboding (even if it had been announced last October as a salvaging move to bring the house under Coty's aegis), suppossing the downturn of the prestige status of the once venerable brand of innovator François is anything to go by. Coty fragrances are sold...well, at drugstores and mid-market stores. Spanish-born Cristobal Balenciaga, the top couturier admired by all other couturiers, had always been about impeccable and understated luxury. Never mind that Catherine Walsh, Senior Vice President Marketing American Licenses Coty Prestige said: "Charlotte Gainsbourg, besides her close collaboration and friendship with Nicolas Ghesquière, truly embodies the unique Parisian chic of this new fragrance." Will the new fragrance have "unique Parisian chic"? Or will it remain a visual manifesto more than a nose-trip, pardon the expression?

The introduction of a new fragrance rather than the re-introduction of the illustrious specimens in the archives probably heralds the definitive death toll on the classic fragrant line-up (Le Dix, Ho Hang for men, Prelude, Quadrille, Michelle...): They were discontinued and hard to find anyway, but I doubt they will resurge under the Coty label with any aspirations as to preserving their soul. The latest IFRA restrictions do not help along either, as does not the cost effectiveness of bean counters at headquarters (Michelle from 1979 for example has a ginormous tuberose and rose heart that far exceeds the naturals ratio sanctioned today with an oakmoss and sandlwood base to scare horses, more of which later; it's supreme! ) That only leaves Cristobal, Talisman, Rumba and their respective flankers out. Which is sad...



Clip originally uploaded by unnouveauideal on Youtube

Escada isn't giving up just yet?

Escada, the German prêt-à-porter brand founded by Wolfgang Ley 32 years ago, which was also one of the big players in the fragrance industry a few short years ago, filed for bust the other day after a free-falling plummet in the second trimester of 2009. According to Reuters however this was no news as they had published shares taking a hit as far back as February 2008: "Escada, rumoured to be a takeover candidate, said sales dropped 9.1 percent to 142.1 million euros ($214.6 million) in the quarter ended January. Earnings before interest, tax, depreciation and amortisation (EBITDA) sank 68.5 percent to 6.8 million.UniCredit analyst Volker Bosse said he expected sales of 158 million euros and EBITDA of 19.9 million."We see the company as having a higher risk profile than its peers," said Bosse, who rates Escada a "sell". Escada trades at about 12 times 2009 earnings and the sector average is 14.5." Some attempt at salvaging the crumbling brand had been made in June 2007 when Chief Executive Jean-Marc Loubier took over and there was "a five-year plan to win market share and raise profits by expanding into higher-margin accessories, shutting some stores and renovating others". But Escada's shares leapt 15 percent on Nov. 26 on rumours of a bid by French group Louis Vuitton Moet Hennessy. 2009 was even bleaker... Hiring Michael Boernicke, the former chief executive of German pay-TV broadcaster Premiere as finance chief last February, replacing chief financial officer, Markus Schuerholz, the results weren't up on a par with expectations.
The company is currently in talks about a takeover. Judicial administrator Christian Gerlof is set to announce the news in a few days. Fashion designer Wolfgang Joop, as well as Nickolaus Becker, a Munich lawyer, expressed interest in taking over the reins at the fashion house. Offers are rumoured to be running into the 9 figures (that's in euros).




However Escada is keeping up images by engaging newly popular Olivia Wilde, a TV star from series Dr.House, to front the newest Escada fragrance for women, Desire Me.
Desire Me by Escada follows Incredible Me from 2008 and is a fruity floral gourmand with notes of citrus, mandarin, green notes, peony, dark chocolate and coffee notes.

In a quote ms.Wilde said:
"For me, Esacada stands as a synonym to style, refinement and sensuality. I love being considered an Escada woman and I think the majority of women would aspire to possess the admirable qualities that the perfume incarnates so perfectly".

Yeah, yeah...The show must go on!



Related reading on Perfume Shrine: Market news, luxury and tendencies July '09, Luxury market amidst the Recession and Other Bedtime stories

Jo Malone expands to Eastern Asia

Takashimaya, one of the most popular shopping spots in Singapore, has been chosen to host the newest Jo Malone venue. The shop-in-shop boutique, mimicking the master plan of the London Sloane Street flagship store (including a Tasting Bar) is part of a greater plan by parent company Lauder Group to expand in Southeastern Asia and the Pacific region. The contract has been signed between Lauder and the Lane Crawford Joyce Group for exclusive distribution of Jo Malone products in 7 territories: Hong Kong (already hosting Jo Malone since last July), Singapore, China, Taïwan, Macau, Malaysia and Indonesia. The company is determined to face the economic crisis difficultes and come out victorious.

The Market Share of Young Women in France

According to Maryline Le Theuf (Source: cosmetiquemag, mars 2009) and a survey of 2500 women between 15 and 24 years of age in France (NB the survey was conducted through 18 May 2008), the annual budget of hygiene/beauty products of that demographic (15% of the French population) has been raised to 240 per year corresponding to 22 purchases in the same time frame. The amount spent by those over 25 is 262 per year for the same number of purchases, explained by the slightly costlier items purchased by women with greater economic independence.
The percentages are grossly taken by makeup (85% of this demographic in contrast to 63% total in France) and hair products (I guess we all recall our troubled identity-searching teenage-hair- days!). It's impressive however to see that those young women buy a lot of products off catalogues and the internet on what concerns fashion and the trend extends to perfumes, with 52% of the 20-24 year olds having acquired 4,5 products via the Net. Makes you re-think the retail prices on several fragrances, doesn't it?