Beauty Buzz

Direct to Consumer Prestige Fragrance Sales Rise

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By: Jamie Matusow

Editor-in-Chief

 
Online and home shopping sales of U.S. prestige fragrance strike an up note.
Consumers that are re-purchasing their favorite scents are forgoing brick and mortar stores and placing online orders instead.

The NPD Group found that direct-to-consumer sales of U.S. prestige fragrance grew 10% in the 12 months ending February 2014, to $285 million. It may only be a small portion of the $3 billion U.S. prestige fragrance market, but the performance of products sold on department store websites, in key online-only beauty retailers, and through TV/home shopping retailers is a bright spot for the industry, which saw 2% declines during the same time period.

“The desire to ‘try on’ a scent before committing isn’t about to go away, but there is real appeal for consumers in the immediacy of replenishing the supply of their favorite scents from the comfort of wherever they are,” says Karen Grant, vice president and global industry analyst, The NPD Group, Inc.—and a member of Beauty Packaging’s Board of Advisors.

Gift sets led the pack, representing 46% of direct-to-consumer prestige fragrance sales in the U.S., ahead of standalone juices, which accounted for 44% of sales. Gift set sales grew 9% compared to the 12 months ending February 2013.

“Offering consumers incentives and options that link the in-store experience with the convenience of purchasing direct is the best of both worlds. It is this type of seamless retailing that is providing manufacturers and retailers a world of new opportunities,” adds Grant.

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