Thanks for the link. The figures are quite well documented and extensive.
Interesting. Thanks for the info.
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I have absolutely no idea why they think low retail prices are having a negative effect on their margins. The lower the retail price, the faster the turnover and the higher the sales volume. EA does not generate revenue based on retail price, they base it on their own price to distributors and retailers. If for every dollar of their own revenue retail prices fell from... say, $2 to $1.50, that is irrelevant, because their own revenue is still that very same dollar. If they sell a million dollars of product to a retailer, it doesn't matter to that transaction if the retailer marks it up to $1,000,000.01 or $5,000,000, EA still gets their million. All that matters is that the product sells, an at a price the retail partner can maintain for making future orders.
Unless they somehow relied on direct sales, where their MSRP cannot compete with discounters. But then they could just reduce their direct sales operations and move more product wholesale.
Not too surprised. Even here on basenotes, a lot of members have low expectations towards celeb scents. Not to say that a lot of them don't smell good.
Thanks for this explanation Lomaniac... Once Dillard's , Macy's and whoever make the purchase... What the Dept. Stores sell them for does not really matter... Makes sense to me... Thanks again!!!
Yeah, reducing the price may scare off some people who think price is an accurate indicator of product features (it isn't), but they will be replaced by those looking to pay lower prices, and the demand schedules will have an increase in total units demanded despite the loss of anyone who still thinks there is no marketing component to decisions about purchases. And for the manufacturer, that is only good. That is because no matter the changes in retail price, within a relevant range they are still generating the same contribution margin per unit, ie selling at around the same price no matter the price on the shelf. The only real difference would be volume discounts and trade credit, which they have to design intelligently no matter what the sticker price is.
Good news, I'd like to see the end of celeb scents, complete trash
The brands that aren't selling, like Justin Beiber, Nicki Minaj, and Taylor Swift, are aimed at teens - and as the article states, teen unemployment is worse than the national 6.xx% average in the US. As a result, I've noticed Arden moving distribution of these celebuscents from department stores to discount stores and drugstores - with corresponding price cuts.
Top 5 for Winter:
1) Straight to Heaven - By Kilian
2) Back to Black - By Kilian
3) Musk Oud - By Kilian
4) Encre Noire - Lalique
5) M7 (vintage or Oud Absolu) - YSL
My mission statement: "I am not afraid to keep on living - I am not afraid to walk this world alone."
These frags aren't selling because the faces behind them are just barely celebrities. Liz Taylor was an icon. Most of the TV show and Us Magazine "celebs" nowadays are manufactured stars that most people could give a sh@! About.
I've actually been trying out a few of these lately just for kicks. They tend to be as interchangeable and redundant as the celebrity on the box.
ELdO has the right idea when it comes to celeb scents though with the fab Tilda Swinton Like This and Tom of Finland.
The article also appeared in The Guardian(UK newspaper online) , so hopefully the rest of the crap celeb fragrances will disappear. Seems the 9 -12 year olds who tend to wear them are growing up.
Arden is a house which for me, are just rubbish perfume wise. I actually had a sniff of Blue Grass last year out of interest and it smelt nothing like the one I remember from the 70s when I was a teenager.
No talent no-marks just seeking a quick buck before they disappear up their own backsides or wind up dead on a slab due to an od.
EA's shares plummeted by 20% -- serves them right for endorsing all these shoddy products.
As much I agree with comments here on these celebrity scents being garbage, they do introduce people to the world of fragrance. These people grow tired of these scents and move into other scents keeping the industry flowing.
MY STEALTHY FREEDOM.
"THE GLOBAL PERFUME INDUSTRY & ITS FUTURE VALUE:
The global perfume industry is generally valued at around $28 billion (based on a 2012 report) per year, and Elizabeth Arden’s Wiki-Invest page states that the industry has a market cap at $36.6 billion dollars. I believe that means that most people cap the perfume industry’s future worth at around $36 billion. And, in fact, that is the usual number that I’ve read when people are calculating how much the industry will be worth in 2017 or 2018.
A more recent report says it’s going to be far, far bigger than that. Perfumer & Flavorist cites a 2013 study by Global Industry Analysts which says the industry will “reach about $45.6 BILLION dollars in 2018,” a mere 4 years time! Unfortunately, the P&F article is not written in a very readable, straight forward manner, and, more importantly, they bury the lede, so I’ll turn your attention to a more useful source which makes it clear that it is (alas) celebrity fragrances that are really expected to drive the overall surge to a $45.6 billion dollar a year business.
Companies and Markets states it boldly in its headline: “Global perfume market driven by the demand for celebrity inspired scents“:
The global perfume market has been forecast to reach a value of approximately US$45.6 billion by 2018, driven primarily by growth expected in the underpenetrated emerging markets and innovative product launches.
The market is set to benefit from the growing trend towards consumer urbanisation, higher spending propensity and the heightened importance on personal appearance and grooming. In addition, increased demand for youth-oriented, floral and exotic fragrances and celebrity perfumes will set the pace for rapid market expansion.
Perfumes today have evolved into a mainstream business in the cosmetics, and personal care industry. From being non-essential and frivolous, perfumes have emerged as essentials, owing to the increasing trend of appearance and personal care becoming part of pride, self reliance, and confidence.
No longer considered as an extravagant grooming accessory, perfumes have metamorphosed into a “feel good” factor, which complements the consumer’s need for expressing individuality, and personal style. The wide range of themes and choices enable consumers to choose fragrances that complement respective personal and characteristic traits.
Dictated by the fickle trends of haute fashion, the world of perfumes is beginning to witness the entry of new apparel designers, and pop, music, and movie superstars making a dent on the market. The demand for celebrity inspired scents shows no signs of abating, thanks to the increasing number of celebrity fragrances hovering in the market.
The perfume industry is primarily consumer driven. Consumers have a unique cultural attitude to “fragrance” and an uncritical concept of possessing a certain kind of identity through wearing fragrance.
Currently on the global radar are low penetration markets such as China, and Japan, where huge untapped opportunities are the focus of large international players. Fine perfumes are increasingly looking at the teenage segment as a potential growth market. Women’s fragrances continue to dominate the market, with a maximum number of product launches and innovations aimed at the fairer sex.
The scenario is however set to change with men’s fragrance segment beginning to witness strong growth patterns, as the importance of grooming tops the list of men’s priorities. Typically, the men’s market was confined to the after-shave fragrances, but today the cards are being turned and men’s fragrances for specific occasions are witnessing huge growth, holding the promise of emerging into a mainstay market......."
Last edited by pluran; 21st August 2014 at 12:10 PM.
It must also be noted that celebs like Bieber & Swift have lost a lot of clout of late with their antics.
Celbuscents are linked to the celebritie's careers. I always think of Antonio Banderas scents: he is getting old and eventually, he will die. That means no more The Golden Secret et al, doesn't it?
Si, not only career, also their life.
There's no accounting for taste.