CEW Explores the world of time-defying scents
Cosmetic Executive Women (CEW) hosted its Women in Beauty Series at the Harmonie Club in New York City on April 28, presenting a conversation with two industry leaders focusing on the intricacies of creating a fragrance that achieves an everlasting appeal. The sold out event featured Veronique Gabai-Pinsky, Global Brand President of Aramis Designer Fragrances, Beauty Bank and IdeaBank of The Estée Lauder Companies, Inc., and Christine Dagousset, Executive Vice President, Fragrance and Beauté, CHANEL, Inc., discussing the strategies of creating scents that break through the confusion of the countless new launches and obtain a sense of timelessness.
As fragrance sales gradually increase—up 1% in 2010 according to The NPD Group—Ms. Gabai-Pinsky explained that the boost in sales is hiding the realities of the industry. With innumerable fragrances introduced each year, the latest launches that impart a resonating story, along with classic fragrances, are those that are driving sales. Ms. Gabai-Pinsky stated that there has been a complete polarization of the market with what people consider as true luxury items and what is seen as commodity; products that fall in the middle of those categories are struggling. “The consumer has had a reassessment of values after the crisis,” said Ms. Gabai-Pinsky, as she described consumers questioning the products they purchase. “There has been a shift in what luxury products stand for. Now, we must not only tell the story of the juice, but show the passion put into it. That is what makes luxury, the experience that surrounds a fragrance.”
The re-examination of luxury products has primed companies to reposition their marketing strategies. Both speakers agreed that companies must not only sell a fragrance’s memorable juice but also an experience that communicates its equally memorable story. Ms. Gabai-Pinsky maintained that a fragrance must “convey a message that is simple enough to understand, yet compelling enough to be inspiring.” Noting the recent launch of pureDKNY, she explained the fragrance’s platform of sustainability—giving back to the communities that are harvesting the vanilla used in the fragrance—was extensively presented to the consumer on the fragrance’s packaging, at point of sale as well as on the Internet.
CHANEL assumes a more selective approach to marketing, creating experiences around its fragrances that are not based on sampling or promotions, but rather remaining dedicated to the brand’s exclusive heritage and honoring the quality with which it is associated. “We stay true to what we are and are loyal to our products,” said Ms. Dagousset. “We need to reinvent the experience, not just sell the fragrance, but go back to the roots of the brand,” she stated as she described a previous promotion to commemorate CHANEL N˚5, temporarily renaming sections of Fifth Avenue in New York City to “Avenue N˚5” to celebrate the iconic scent.
As the economy recovers, lessons learned from the recession still remain, impacting the entire industry’s strategy as consumers purchase more cautiously. CHANEL’s game-plan remains keeping loyal to its heritage and upholding quality, while The Estée Lauder Companies has also found value to this model. “We’ve reshaped our business model to avoid a dependency on new launches,” said Ms. Gabai-Pinsky. “We support the classics, and introduce newness only when it’s meaningful and when it makes sense.” A formula, it seems, that provides customers with fragrances that will defy the test of time.
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CEW’s Carlotta Jacobson with The Estée Lauder Companies’ Veronique Gabai-Pinsky and |
Givaudan’s Cosimo Policastro and Chrysallis’ Jill Scalamandre with The Austin Advisory Group’s Paul Austin |
CHANEL’s Jenna Hershey, Kara Andrea, Ruthie Vexler and Kate Shone |
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Givaudan’s Karen Flinn, Kate Greene and |
Sandra Cicio with Ralph Lauren Fragrances’ Guillaume de Lesquen and Givaudan’s Michelle McCabe |
The Estée Lauder Companies’ Diana Espino and Diane Kim (2nd r.) with Ms. Khoury and Mr. Policastro |
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Firmenich’s Frank Voelkl and Bart Schmidt (r.) with The Estée Lauder Companies’ Trudi Loren |
Robertet’s Jérôme Epinette and Pierre Wulff (r.) with Byredo’s Ben Gorham |
Gurwitch Products’ Claudia Poccia with IFF’s Julianne Pruett |