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  1. #1

    Default How is the current economic crisis impacting the fragrance industry?

    There are a couple of threads on Basenotes that discuss the impacts of the current economy on the purchaser, but I have not found any that discuss impacts on the industry itself. A few possible avenues for discussion:

    How does the current economy impact the fragrance industry?

    Will deflationary pressures impact pricing?

    Will currency fluctuations impact pricing? (For example, the dollar has risen significantly against both the euro and the pound. Will that impact prices?)

    Will we see fragrance manufacturers fail or downsize?
    Last edited by scentsitivity; 8th December 2008 at 05:48 PM.

  2. #2

    Default Re: How is the current economic crisis impacting the fragrance industry?

    Given the extent of the economic decline i would imagine that consumers worldwide are being a bit more careful with their spending on luxury or discretionary products. Nowdays i rarely make a purchase that is not discounted at least 25% off retail. Given that a large percentage of their product is purchased overseas, stateside perfume retailers should (if smart) be able to weather the downturn quite nicely by offering more of these enticing sales. After all, the recent strengthening of the US dollar has lowered their cost of goods purchased overseas by more than thirty percent. With the high profit margins, and low costs inherent in the fragrance industry, it should be able to weather the economic downturn well as long as they realize the end consumer is much more price sensitive in todays economy.

  3. #3

    Default Re: How is the current economic crisis impacting the fragrance industry?

    Quote Originally Posted by scentsitivity View Post
    Will deflationary pressures impact pricing?
    Will currency fluctuations impact pricing? (For example, the dollar has risen significantly against both the euro and the pound. Will that impact prices?
    I am astounded that Lutens, and a few other houses, raised their prices so quickly to compensate for the dollar's weakness, but have done nothing now that the dollar is stronger. A blatant rip-off. I'll only buy those brands in Europe now.

  4. #4

    Default Re: How is the current economic crisis impacting the fragrance industry?

    Quote Originally Posted by Ruggles View Post
    I am astounded that Lutens, and a few other houses, raised their prices so quickly to compensate for the dollar's weakness, but have done nothing now that the dollar is stronger. A blatant rip-off. I'll only buy those brands in Europe now.
    My feelings precisely.

  5. #5
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    Default Re: How is the current economic crisis impacting the fragrance industry?

    I realize there is plenty of out of stock merchandise, both locally as in the Internet. Thought the situation would change as of Thanksgiving, but it seems I am wrong.

  6. #6

    Default Re: How is the current economic crisis impacting the fragrance industry?

    Quote Originally Posted by Felswoop View Post
    Given the extent of the economic decline i would imagine that consumers worldwide are being a bit more careful with their spending on luxury or discretionary products.
    Actually exactly the opposite is happening. From "Could perfume be the recession antidote:"
    At Harvey Nichols they tell me that sales - and remember we're talking fine fragrances here - are up some 40 per cent on the same period last year. At Selfridges it is much the same story with a move to small niche perfumers - sales of Tom Ford's Private Blend (250 for 250ml) are up 100 per cent on last year.
    (Credit to Now Smell This for the link.)

  7. #7

    Default Re: How is the current economic crisis impacting the fragrance industry?

    I don't know much about economics, but I don't think it will cause any permanent damage in the long run. They told people to go shopping after 9/11, not because it would help the economy, but because it would make people feel better. People like spending money. They're telling people to go shopping this year, too, so I think it's for the same reasons.

  8. #8

    Default Re: How is the current economic crisis impacting the fragrance industry?

    Quote Originally Posted by Advocate View Post
    Actually exactly the opposite is happening. From "Could perfume be the recession antidote:"
    A note of optimism! Thanks for the link.

  9. #9

    Default Re: How is the current economic crisis impacting the fragrance industry?

    It seems nearly impossible to find a job in the industry. That I can tell you.

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