Kiss me smell me
Poor Donald Trump. Not only is his reality TV show The Apprentice at the bottom of the ratings, but his signature scent, "Trump, The Fragrance", has been discontinued. It seems his plans for a global beauty franchise have fizzled, despite the high-powered backing of the Estee Lauder Companies.
Yet Trump's fragrance woes haven't dissuaded a handful of celebrities eager to cash in on celebrity perfume. In the next six months you'll see new scents from Usher, Mariah Carey, Gwen Stefani, Sarah Jessica Parker, Shania Twain, Paris Hilton, Kate Moss, David Beckham and Christina Aguilera.
At stake is a cut of the $30-billion consumers worldwide spend each year on fragrance. Canadians alone spent almost $500-million on scents in 2006, an amount expected to grow to $571- million by 2011, according to market researcher Euromonitor International. Celebrity fragrances account for approximately 7% of total sales of perfume. It is a growing category in an otherwise flat market.
So, why are celebrities still lining up to lend their names to fragrances? It's simple: "They get 5% of gross sales," says a former fragrance company CEO, who had several high-profile starlets on his label. "As far as I know, every celebrity gets the same deal," he adds.
That can add up quickly. For example, Jennifer Lopez, Celine Dion and Elizabeth Taylor all sit at the top of the celebrity fragrance pyramid. Each earns approximately $25-million in royalties from their fragrance licensing deals. Indeed, it was Jennifer Lopez who kicked off the celebrity-scent trend in 2002, when she launched GLOW by JLO, a fresh floral scent that captured the teen market. Stores couldn't keep the perfume in stock. The trend gained momentum in 2004, with the success of Curious by Britney Spears.
The man behind the JLO deal, who is credited with driving the celebrity perfume trend, is Berndt Beetz, CEO of Coty Inc. Besides Jennifer Lopez, other stars in the Coty stable include Gwen Stefani, Victoria and David Beckham, Shania Twain, Calvin Klein and Vera Wang. He's a firm believer in the long-term viability of signing high-profile names to fragrance deals.
But not just any name. "We look for artists that are multi-faceted with a strong international fan base," says Mr. Beetz. He says fans are always looking for something new from their favourite artists and really do want fragrances from them.
Annette Green, president emeritus of the U.S. Fragrance Foundation says celebrity fragrances have given the moribund perfume industry some sizzle. "The classics seem to have worn themselves out in the consumer's mind," she says. "As the ongoing celebrity craze infiltrates every walk of life, the fragrance industry is very fortunate to find itself in the eye of a major consumer revolution."
Much of this is thanks to a younger generation. Names like Britney Spears, Gwen Stefani and Jennifer Lopez are drawing young girls to the perfume counter where they are much more likely to reach for a bottle with one of these names than some French or American fashion house name.
Celebrity scents are an easier entrance into the intimidating world of perfume. "For consumers who know less about scent, celebrity-branded versions offer an established image and something people can understand and identify with," says Diana Dodson, a senior analyst with Euromonitor in London.
Companies like Elizabeth Arden are catering to these younger customers by offering brands such as Curious by Britney Spears in smaller, more affordable 30-millilitres bottles. "What's different from the days of Elizabeth Taylor promoting White Diamonds is that it is no longer absolutely necessary for the celeb to make personal appearances in stores," says Ms. Green. Fragrance companies prefer to trot them out at glitzy fashion and social events, where they can generate major press coverage.
"I only see the category getting bigger and bigger as new celebrities emerge in every field of accomplishment," Ms. Green says. Besides the money for celebrities, selling a scent is another way of staying top-of-mind with consumers and company executives.
"I never thought my L.A.M.B. fashion brand would ever get this far," says Gwen Stefani, of her line of fragrance and clothing. "I really did it so that I'd have something to do after music. I'm embarrassed to say how much I'm enjoying it. I'm already working on five more scents." (Canada.com)
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