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“Re”

Launching the Perfume line

of

Raffles University Entrepreneurship and New Business Development

K S ENI A SEMIROVA Product & Industrial design


MARKETING REPORT | 02.2020

“Re”

Launching the Perfume line

of

Ksenia Semirova Product & Industrial design Raffles University Entrepreneurship and New Business Development 02.2020

kseniasemirova@gmail.com

2


3 EXECUTIVE SUMMARY . . .............................................. 5 PERFUME MARKET THESE DAYS................................ 11 BRAND VALUES, MISSION & VISION.......................... 12 IDEA DESCRIPTION..................................................... 15 SWOT . . ......................................................................... 16 MARKETING MIX . . ........................................................ 18 Product .................................................................................. 18 Price...................................................................................... 19 Place .................................................................................... 19 Promotion.............................................................................. 19

REFERENCES . . ............................................................ 20


MARKETING REPORT | 02.2020

4


Executive summary

5

The resurrected brand that plays on collective

acumen. Thus, her legacy must also be honored

memory

in this direction.

and

references

to

the House

iconography is a formula that works. Still,

This paper aims to show an alternative way

direct interpretation of the heritage is not

to gain described clientele by launching

enough to usher the brand’s legacy into

a perfume

the 21st century. Thus, the Schiaparelli name is

of Schiaparelli House heritage. These days,

legendary and offering a solid foundation on

the perfume market increasingly growing and,

which to build. The core brand values, such as

according to research expecting to expand

focusing on individuality most innovatively and

3.9% from 2019 to 2025 (Grandviewresearch.

creatively, were established almost 100 years

com, 2019). The market is highly rival, and both

ago fully correspond to the current time and

major brands and local perfume companies

attract another era customers.

are facing challenges in product offerings,

Although the brand has built a loyal hi-end clientele, the problem of increasing brand representation to new markets is clearly seen. In fact, the brand is being held hostage by the unspoken rule of Couture, when the  company is not allowed to sell more than three to seven pieces in the world (Refinery29. com, 2018). To put it in other words, the brand today should focus on the following strategy. First, how Millenials and Gen-Z, who assumed as

the

most

prospective

target

groups

(Danziger, 2019), can forge a relationship

line,

which

is

also

a

part

price, or marketing activities. Still, it is clear that the Schiaparelli House has several competitive advantages and can successfully enter perfume direction. First, although the brand has a strong reputation of Haute-Couture Fashion House, any product apart from that will be a novelty, and a wellestablished name will help with promotion strategy. Second, creative decisions such as packaging and positioning have been made already and need to be interpreted in a modern way, which is mostly possible by the in-house team. And finally, yet, it is required to engage

with something that most of them do not

external

access. Second, how to give new emotional

investment could be considered an opportunity

experiences and how to provide the highest

not only create one more commodity to sell

level of quality for such a demanding audience

but as a possibility to establish new standards,

at the same time. Yet, Elisa Schiaparelli was

which also will be the best way to honor

known for her rule-breaking spirit and business

the name of Schiaparelli.

perfume

manufacturers.

This


MARKETING REPORT | 02.2020

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Brief History

Between the World Wars of the 20th century, Elsa Schiaparelli was one of the most famous designers in the world. Opposed to the  other fashion professionals of her time, she designed apparel for women who wanted to escape from the straightforward interpretation of the political and social routine of  the  interwar period. Being inspired and collaborated with the most progressive culture representatives, she introduced not only numerous innovations to the fashion world but also reshaped the already established perceptions of style. The  heritage of her creative approaches still lives today through the revived Schiaparelli Maison that was officially reopened in 2012 by Diego Della Valle, the Chairman of Tod’s Group (Schiaparelli.com, 2020).

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MARKETING REPORT | 02.2020

Schiaparelli today

ELSA SCHIAPARELLI SAS, a simplified share company with a single partner (Simplified joint-stock company) with a capital of € 28,000,000 and with the annual turnover of €  9,229,669 (2018), evolves in the 

“Clothing

industry”

activity

sector

(Verif.com,

2020).

The headquarters of this company is currently located in France, Paris, 21 Place Vendome — 75001 Paris 1er arrondissement. According to Societe.com, the average of employees is between 20 and 49 people. The management structure is given below:

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DIEGO DELLA VALLE

EMILIO MACELLARI

REMY GANNON

Owner of Maison Schiaparelli

President, Sales director, Marketing director

Financial director

DELPHINE BELLINI

DANIEL ROSEBERRY

CÉDRIC EDON

CEO

Artistic Director

Communications director

Fashion & Luxury brand management, business development, international licensing and cobranding, company restructuring, operations management

Appointed for all collections, projects and for the image of the House


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Brand primary competitors are mostly European premium brands such as Saint Laurent, Alexander McQueen, Gucci, Vivienne Westwood, Versace, who also operate in accessories and fragrances production sector, apart from activities in apparel design. These days management of the House is actively trying to increase brand representation to the new clientele. Generally, the target audience of the brand can be described as an  ambitious, educated, fashion-savvy, and a modern young woman from around the world, who is willing to invest in the quality, flattering pieces building up her unique style. On the one hand, launching a ready-to-wear line seems like a proper step to attract such Millennials. In 2019, the House released the first ready-to-wear collection. Still, the experiments in that direction had started in  2016, when former artistic director Bertrand Guyon offered the  concept “prêt-à-couture” that means not couture, but not quite ready-to-wear either (Phelps, 2016). On the other hand, in a highly competitive environment, a need for expanding brand values in different segments connected to fashion and beauty are clearly seen.


MARKETING REPORT | 02.2020

Forecast global growth, by segment, 2020-23 2020

2021

2022

2023

Total Fragrances

+5.9

+5.5

+5.7

+5.8

Premium Fragrances

+6.2

+5.5

+5.7

+5.6

Mass Fragrances

+5.4

+5.5

+5.9

+6.2

Global unisex or gender-neutral fragrance launches as percentage of all over the market

10

2010

17%

2018

51%

(Cosmeticsbusiness.com, 2019)


Perfume market these days

According to Grand View Research, the main

active fragrance category in 2018, with global

driver for global perfume market growth, which

sales up 7.5% to USD 2.4 billion. Some individual

was valued at USD 31.4 billion in 2018 and is expected to expand at a CAGR of 3.9% from 2019 to 2025, is increasing demand for premium and luxury fragrances. It is noted that recently,

retailers have felt a much stronger uptick: Liberty London, for example, has reported a 40% rise in sales of non-binary scents. It  is

perfumes have evolved into a significant

no surprise that recently, brands from all

business in the cosmetics and personal care

corners of the fragrance market move into this

industry. These days, the international and regional competitors, who  represent the global luxury perfume market, are mostly focusing on  product innovation and a new

pattern: Chanel with Les Eaux de Chanel, and LVMH with its Sun Song, Cactus Garden, and Afternoon Swim scents, as well as non-gender

experience.

specific range debuts from Britney Spears

Leading players aim to gain an advantage

and Ariana Grande. Mona Maine de Biran, co-

in the market by competing in different factors

founder, and President, Kierin NYC, states that

interpretation

of

customer

such as product offerings, prices, ingredients, and marketing activities with paying particular attention to online distribution channels and digital marketing strategies.

the current unisex trend in fragrance is just the beginning, and its evolution is inevitable (Cosmeticsbusiness.com, 2019).

Among other patterns, special attention must

It is noted that male customers mostly request

be paid to the gender-neutral trend. Demand

gender-neutral fragrances. Such genderless

for unisex fragrances is rising in popularity across the world, as consumers today are focusing on expressing their individuality and are preferring scents with a unique personal

scents are becoming profoundly successful not only in both the Americas and Europe but also in the Middle East. However, the category is still

appeal. According to Euromonitor International,

not highly prevalent in a few markets, such as

the premium unisex fragrance was the most

Brazil (Mordorintelligence.com, 2019).

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MARKETING REPORT | 02.2020

Brand values, mission & vision

Today, when Schiaparelli Maison is experiencing a new chapter of its  story, central values could be characterized as a unique vision of Haute Couture uniting art, innovation, craftsmanship, and courage, but most of all unconditional respect to the heritage of Elisa Schiaparelli. Both Delphine Bellini (Forbes.com, 2018) and Cédric Edon (Refinery29. com, 2018) had repeatedly emphasized that Haute Couture requires exclusivity and aims to take care and to love serving the clients. At the  same time, the leading creative approach (and also the most significant challenge) of the Maison is finding the right balance between heritage and reinvention. In other words, the brand’s legacy requires respect while ushering it into the 21st century. Therefore, according to Diego Della Valle, all of the Maison activities must be deployed in connection to heritage but with a modern and innovative creative approach to establish Schiaparelli as a revolutionary brand.

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In line with the stated, the Mission and Vision of the Schiaparelli brand might be formed as: Mission:

Schiaparelli makes the client experience into something truly personal and turns it out a unique moment by offering genuinely contemporary, innovative, revolutionary, and stylish solutions. Vision:

Schiaparelli enchants and creates magic for clients.


MARKETING REPORT | 02.2020

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Idea description

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The executives of Schiaparelli are stressed continuously out that heritage is the core of brand development. In this case, it seems logical to pay attention not only to fashion archives but also to perfume legacy. At her time, Elsa Schiaparelli was famous both for radical avant-garde fashion design and for her for a witty take on fragrance. And her approach to perfume was truly revolutionary than just hype. Among her innovations, which fully correspond these days trends, were: •

introducing the unisex fragrances (released in 1928s);

provocative, but creative marketing strategies;

an

unconventional

approach

to

the

packaging,

including

from utilizing a variety of additional materials to fill in the perfume box to presenting the packaging as a piece of art itself; It is widely assumed that Millennials (born 1978-1992) are the most perspective target group, especially as consuming luxury goods. This audience is well-known and extensively researched. At one level, they are dragging couture into the 21st century. Still, Millennials are also emulating the connoisseurs of  past eras  — sustaining the business of couture and preserving its art for future generations (Bala, 2018). However, according to Willersdorf advises, the younger Gen-Z (1993-2001) will have a strong influence on how fast and profound the changes in the luxury market evolve. Yet, they remain a mystery to many luxury brands (Danziger, 2019). But it is already clear that Gen-Z will adapt and magnify all Millennial’s trends and will remix it differently. In this case, the objective for the launching fragrance market today must be:

Create a significant perfume able to win over a new, younger, progressive, unisex clientele and become a legend around the world.


MARKETING REPORT | 02.2020

S

W

trengths:

eaknesses:

• Stiff competition from other premium

• Strong brand equity. • Reliable

hi-end

(couture)

clientele

has already built. • Strong

established

positioning

the price. • The innovative approach is the core of the brand. • Orientation to heritage and history of the brand. Most creative decisions have already been made. Just modern interpretation needed. • Packaging and advertising of that time, in general, visually meet these days’

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for the brand is limited in the current environment.

as a  couture brand, that can affect

market requirements.

brands means market share growth

• The production base must be found. • The existing team does not meet the requirement fully — NOSE must be found. • Most

competitors

already

have

perfume lines. • A new distribution channel must be built to sell perfume effectively. Now it is the only boutique in Paris and partnership with NY retailer — offline.


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O

pportunities:

• To become a trendsetter for a wider audience.

T

hreats:

• Late decision. Competitors already had been thought about the same.

• Possibility to enter new markets.

• Social trends could change dramatically.

• Perfume direction is an opportunity

• How to protect from copying?

to test other business strategies and switch customers from other brands. • To attract entirely new younger and advanced clientele. • To establish a new perception of couture among the younger generation. • To establish a robust leading brand position among the socially innovative community. • Nobody pressing to play the same game as competitors - new ways of communication with TA through perfume could be found

• External factors such as an economic slowdown.


MARKETING REPORT | 02.2020

Marketing mix PRODUCT The product strategy must respond to the core value, which is offering the impression of something unique that nobody will have. Thus, the perfume will be positioning as niche and artisan. It is proposed to interpret the archival concept “Sleeping Schiaparelli” for the current market. It has two main advantages, such as: •

referencing to sleep and dreams that are perceiving as something personal;

the idea of packaging is exceptionally sophisticated and can be interpreted as both a luxury collectible piece and as a container for mixing fragrances.

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19 PRICE The price for the majority of luxury perfumes ranges of USD 100-200 (Mordorintelligence. com, 2019). It is proposed to operate in this range for the basic version of the product. However, for additional services that require customization, it is vital to consider price options for customers with lower and higher incomes. Special attention must be paid to the luxury (couture) version of the packaging, which will be positioned as a collectible piece. The price of this kind of item might vary within USD thousands.

PLACE For the sake of saving couture spirit, the only place for presenting the luxury version of perfume is the brand’s headquarters in Paris or an exclusive exhibition in partners’ boutiques. The majority of sales must be operating online. The format of online retail must be presented not only as a regular web-store with ready-to-buy products but in alternative ways such as pre-order of the customized item, subscription, etc.

PROMOTION Promotion is one of the essential parts of launching perfume for the brand. This part can be started even before the actual product will begin the market. The process of fragrance development might create not only an added value but also be a competitive advantage. For example, aspiring perfume designers can compete for interpreting the concept of sleep and dream in perfume. Avoiding celebrities in the campaign and utilizing illustrations will link heritage and modernity. It is also can be done by either an in-house team or aspiring professionals. Collaborations with VR-models such as @Shudu (Thediigitals.com, 2020) must replace traditional advertisements.


References 1. BBC News. (2017). Are big brand perfumes losing

12. Leighton, H. (2019). What It Means For Virtual

their allure?. [online] Available at: https://bbc.

Instagram Influencers’ Popularity Rising. [online]

in/3bz5z2A.

Forbes.com. Available at: https://bit.ly/2SH5hxW.

2. Bala, D. (2018). How Millennials Have Become Couture’s Biggest Client. [online] British Vogue. Available at: https://bit.ly/39BCUIp.

Matters in the Digital Age. [online] Vogue. Available at: https://bit.ly/2uIm63l. 4. Clark, G. (2019). The oldest new fashion houses in Paris. [online] Globalblue. Available at: https://bit.

ly/2STdQWD. 14. Market Research Blog. (2019). The Global Fragrances Market – Bringing Fragrances Closer to Consumers | Market Research Blog. [online] Available at: https:// bit.ly/2w6su4O.

ly/2HkHy16. 5. Cosmeticsbusiness.com.

(2019).

Cosmetics

Business reveals the 5 biggest fragrance trends in new report. [online] Available at: https://bit.

15. Phelps, N. (2016). Schiaparelli Fall 2016 Ready-toWear Fashion Show. [online] Vogue. Available at: https://bit.ly/2UMJXtq. 16. Refinery29.com. (2018). How A Trip To Paris

ly/39sUqyj. 6. Danziger, P. (2019). 3 Ways Millennials And Gen-Z Consumers Are Radically Transforming The Luxury Market. [online] Forbes.com. Available at: https://bit. ly/2SmB7AX.

Millennial shoppers? And what do they really want? | Accenture Outlook. [online] Accenture.com. Available at: https://accntu.re/2SmyoYa.

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French

Couture

Brand

Schiaparelli Comes to Bergdorf Goodman. [online]

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Times

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https://bit.ly/3bEkuZp.

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Changed My Mind About $100K Dresses. [online]

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Elsa

Schiaparelli

Revolutionized the Perfume World. [online] Vogue.

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Global

Profile for Ksenia Semirova

Relaunching the perfume line in the House of Schiaparelli. Marketing report  

This report is one of the assignments that were presented as a part of the Entrepreneurship and New Business Development. The paper aims to...

Relaunching the perfume line in the House of Schiaparelli. Marketing report  

This report is one of the assignments that were presented as a part of the Entrepreneurship and New Business Development. The paper aims to...

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