Mass fragrance levels up

Premium mass fragrances win a portion of consumers’ budget

The classic marketing strategy used for years to push sales of niche fragrances—selling a story; a product that is inspired by the romanticism of France and the feeling of freshness—still appeals to the millennial digital-savvy consumer.

This helps explain why sales of Enchanteur, a line of personal care products such as body mist, lotion, bath, talc and deodorant spray, launched last January at Watsons, have exceeded the supplier’s expectations.

“We raked in P800,000 for January. That’s a big sale for the first month if you sell some 2,000 pieces. A sale is not successful if you sell less than a thousand,” explains Joana Marie Atienza, channel manager of Sichel &Sichel, the distributor and Watsons’ partner.

She attributes the robust sales to colorful packaging and the prominent display at Watsons stores and SM’s beauty section under Watsons. Moreover, customers feel they are getting value for money for a product that offers olfactive complexities, what with the mix of floral and fruity notes with essential oils and animal extracts, for P400 per 50 ml bottle.

“There is a potential for mass market. You just need to find the niche. If you don’t give them quality, that is, if the product smells more like alcohol, they won’t buy it again. They know it’s cheap, but it won’t last long. This fragrance will last. People will buy it and stay loyal,” adds Atienza.

Enchanteur Paris Fragrance’s Joana Marie Atienza (left) and Krishna Kulkarmi

Enthusiastic response

Based on the enthusiastic response, she is projecting P50 million in sales of Enchanteur in all its categories for 2017.

This fragrance shows a change in the mass market fragrance toward a refined level in scent and packaging at a pocket-friendly price.

Karmina Porta, Watsons Group Category manager, explains that eau de toilette has more perfume essence than cologne, which is diluted perfume. EDT is sprayed liberally and lasts for several hours.

“Customers feel they get value for money with EDT,” she says.

Watsons posted a 25-percent growth in 2016 in the fragrance category, boosted by consumers in the 18 to 25 years old age bracket.

“They want a scent that lasts but is also affordable,” says Porta.

Krishna Kulkarni, general manager of the Singapore-based Wipro Unza Indochina PTE, a manufacturer of personal care products, explains that Enchanteur is not a French product and doesn’t imitate luxury brands. Nonetheless, its ingredients come from France and the products are made in other countries.

This identification with the sophistication of France has helped make the brand successful in Asian countries.

He says sales of mass market fragrances are growing, particularly in emerging markets. The company posted a 15-percent sales growth in its market of 50 countries.

He sees the huge potential in the Philippines, quoting the 7-percent economic growth in 2016 and the expected 6-percent growth until next year.

Prestige

“Because of this growth, people aspire and want to be part of growth. They visualize themselves to level up from X to 2X. That drives the demand and consumption,” says Kulkarni.

Consumers are looking for products that lend prestige and an upscale experience, but also within their means. Since fragrance is an aspirational category, younger customers may not have the budget for the premium brands. Kulkarni says that by providing mass premium products such as Enchanteur, consumers will get the same fragrance notes and classiness at an inexpensive price.

Both the principal and the supplier have chosen exclusive distributorship at Watsons, knowing that their products will be accessible to a wider market.

“The Philippines is a typical market, driven by modern trade like the malls and supermarkets. They are home-grown stores. This makes it challenging to enter a country where international chains are not operating. Since we are connected with Watsons in other countries, we have become their preferred suppliers,” says Kulkarni.

To attract consumers, Enchanteur is displayed on its own, promoted on digital media and displayed on the top shelves.

“The advantage of exclusivity is that it feels as if it’s your own store. We have the freedom to create our shelves and displays. Watsons treats our brand like their own. It has a reach of 400 stores,” says Atienza.

Wide selection

The health and beauty chain offers a wide selection of mass market fragrances, the market of which is young and adventurous. The sales of premium mass fragrances exemplify the increasing sophistication of today’s consumers.

Still, Porta notes that Filipinos don’t stick to a certain brand.

“Filipinos love different scents. With mass fragrances they try different brands unlike customers of premium brands. If you like Aqua di Gio, you’d be a loyal fan of that,” says Porta.

Then again, young consumers like to build a wardrobe of fragrances, which they can experiment with until they’re ready for the high-end brands.