Online Exclusive: CEW Speakers Share Scent Strategies

Written by Nancy Jeffries, Special Correspondent

(Left) Veronique Gabai-Pinsky, global band president, Aramis and Designer Fragrances, BeautyBank and IdeaBank, The Estée Lauder Companies, Inc., and Christine Dagousset, executive vice president, Fragrance and Beauté, Chanel, Inc., at CEW’s Women In Beauty Series presentation

As part of Cosmetic Executive Women’s (CEW) Women in Beauty Series, Veronique Gabai-Pinsky, The Estée Lauder Companies, and Christine Dagousset, Chanel, Inc., joined moderator Jenny Fine, Beauty Inc., at New York’s Harmonie Club, on April 28, to speak about their strategic approaches to creating scents that defy the hands of time.

Carlotta Jacobson, CEW president, commented, “A beautiful fragrance never goes out of style. When women find a fragrance they love, they continue to use it forever.”

She introduced Veronique Gabai-Pinsky and Christine Dagousset.

Veronique Gabai-Pinsky, global brand president of The Estée Lauder Companies’ Aramis and Designer Fragrances is responsible for the global business for the Aramis, Lab Series Skincare for Men, Coach, Tommy Hilfiger Toiletries, Donna Karan Cosmetics, Michael Kors Beauty, Kiton, Missoni, Sean John and Calyx brands. Dagousset, executive vice president, Fragrance and Beauté, Chanel, Inc., leads strategies designed to build the US business as well as enhance synergies and collaborations on all global activities, overseeing long-range planning, new product development, marketing, sales, and promotions.

Fine began the discussion noting that fragrance sales are going up, however, noted Gabai-Pinsky, who agreed that there is new activity taking place, the average numbers are hiding different realities. “There are classics and other high end fragrances that are driving the bulk of the business,” she said. “In addition, while great launches also contribute to the growth, maintaining the support of the classics is absolutely important. We’ve been blessed with great launches, like Coach Poppy and DKNY Pure this year, but the classics are also important,” she said.

Dagousset noted the continuing success of Coco Mademoiselle. “Coco Mademoiselle has been doing exceptionally well and people are continuing to look for quality after ten years,” she said. Gabai-Pinsky said, “The crisis impacted people in their financial planning, but it was much deeper. It resulted in a loss of confidence and people had to reassess their own values and decide what they would pay a premium for. There were a couple of consequences. There would be a polarization of what people consider true luxury and what they considered commodity. The quality and focus on juice has always been done, but now it is important to understand and explain the juice and the experience of the fragrance.”

Dagousset referred to the Chanel model, which maintains Coco Mademoiselle at No. 1, noting, “This position is a result of our loyalty to the product. We don’t launch every year and we’re very true to our fragrance. We don’t treat them as a commodity. We don’t give away our products. We think that at one point the customer will get back to us if they value quality.”

Gabai-Pinsky added, “In the case of Cashmere Mist, it is the juice that drives the business. In seven years, we have gone from number eleven to number three with the fragrance. We have introduced new delivery around the juice that keeps our customer loyal, and we put our money into fragrance sampling. We have also cut our promotional spend and have reinvested in building the equity.” She noted that it is essential to be respectful of quality and the consumer. “We never say, ‘oh this will be a success for one year.’ Don’t launch if you’re not ready. It’s hard to recuperate from failure,” she added.

While it is difficult to know when the juice is ready, Gabai-Pinsky said, “Never compromise on quality. Be sure you have a message simple enough to understand and compelling enough to be intriguing.”

Dagousset said, “We have an in-house nose and whenever a fragrance is ready, we launch it. We trust our creators to know what’s right. For us, it’s a long process. Sometimes it’s five years. Chanel Bleu took five to seven years to create the juice and then the packaging. But when it’s ready, it’s perfect,” she said.

Gabai-Pinsky said, “The understanding of the world becomes paramount in fragrance creation. We’ll never touch the equity of the brand. This is how the brand is understood and how it sends its message. As the world is evolving at the speed of light, with growth in Brazil and China, for example, you have to take into consideration the olfactive tastes of these parts of the world. You have to accept the fact that you may never be truly global, and that some brands will be more successful in some regions than others. It’s all right as long as you keep the brand equity.”