Women's Trends In The
New Millennium

Major changes have transpired in the ever-evolving fragrance industry and will continue to occur as consumers' tastes change and they become more aware and demanding of the type of products they want made available.
YOU ARE NOT ALONE
One of the biggest trends that have emerged over the past few years is the inclusion of ancillary products (bath and body gels, shampoos, powders, oils, room sprays, etc.) accompanying the launch of a new fragrance. This trend is not only showing with complementary bath and body lines, but in many cases, there is also a men's version of the fragrance, which is either launched at the same time or is in the planning stages. Companies often take advantage of these complementary products by including them in gift sets for the holidays, which have seen sales grow astronomically year after year.
The extensions of bath and body lines appeal in particular to younger consumers, especially teenagers who do not have the spending power of adults, but still want the same products. These teens are considered one of the most important groups of consumers of fragrance because it is at this time in their life that they are building brand-loyalty. At the same time, older women are becoming less loyal to products. Many women now will have four perhaps five different fragrances, and will vary the different scents depending on the wardrobe or the occasion.
The growth in this area has progressively increased in recent years and shows no sign of slowing. For example, Intimate Brands Inc., the operator of Victoria's Secret and Bath & Body Works stores, reported that year-to-date sales through July 1 rose 15 percent over 1999.

AROUND THE HOUSE
Another major trend is the increased employment of household products (candles, cleaners, etc) that are fragranced. As more and more people are spending greater amounts of time at home, whether it is working out of the home, or having more social engagements at home, the demand for new scents in this segment has increased steadily in recent years. This trend will continue, as scent becomes a much greater factor when the home is occupied both day and night.
These products will be different from what is currently available however. As people tire of mass-market odor eliminators and look for something more upscale, aromatherapy and aroma-chology products will have a much greater presence on store shelves. Consumers are continuously looking for more sophisticated scents. This is especially true in home fragrance and cleaning supplies, where products generally have everyday scents or single notes such as pine, lemon, etc. Fragranced candles in particular have sold extremely well over the past few years. They often have seasonal scents such as a "spiced pumpkin" in the fall or a "cinnamon" candle around Christmastime.
The success of scented candles is reflected in The Yankee Candle Company Inc. One of the leaders in the scented candles market, they reported that total sales were up 39 percent for the second quarter of 2000 and that total sales for the first six months of 2000 were up 36 percent over 1999.
We are also seeing more limited edition fragrances as well as purse sprays. Limited edition fragrances enhance the feeling of luxury surrounding the product, creating a greater demand for it. Purse sprays are becoming inevitable. As more and more women are working and traveling, the need for this product has grown.

E-COMMERCE
Impossible to ignore is the affect the Internet will have on the fragrance industry. When it first started, the Internet was more of a haven for the grey market than another distribution channel for perfume companies. Some companies have since embraced the Internet, realizing the potential in it, while others believe that selling a luxury product such as a fine fragrance should be done in a boutique, where it becomes more of an experience for the consumer. The reality is most likely somewhere in between.