Waiting for a Star to Fall

The clock is ticking for celebrity fragrances.  

By Christine Esposito
Contributing Editor

They found the right star to headline the project, and she wanted to take part in every aspect of development. Then, it was onto a blockbuster premier and the media blitz. But soon, sales dropped off. Now it sits on the shelf, waiting for someone to pick it up and take it home.     

Are we talking about a romantic comedy or indie love triangle with a hint of international intrigue?  

No, we’re talking about celebrity fragrance.

In recent years, beauty companies have scrambled to find celebrities to work with on fragrance projects. Alliances were forged with actresses, music stars and models alike. What had once been the exception—ála Elizabeth Taylor— soon became common, as so-called celebrity scents blossomed and brought excitement to what was a rather mature category.

But now, after a litany of launches, the celebrity fragrance market is showing signs of fatigue.  According to Port Washington, NY-based NPD Group, sales of celebrity women’s fragrances fell from $168 million in 2005 to just $140 million last year.  

“Although this is the first year we are seeing a decline in celebrity scents, we do believe it is more than a blip,” says NPD’s senior beauty analyst Karen Grant.

This will surely impact the U.S. women’s fragrance market, which received a much-needed shot in the arm from these star-studded scents. According to Euromonitor International, as the celebrity trend weakens, U.S. mass fragrance sales are predicted to decline by as much as 25% by 2010.

Too Much of a Good Thing

What’s weakening the celebrity market is over supply. According to NPD, there were ten times more celebrity fragrances launched in 2006 as compared to 2002 (considered the beginning of the trend, marked by Glow, Jennifer Lopez’s first foray into fragrance).

“There’s too much out there, and it’s not new anymore,” notes Euromonitor’s research analyst Virginia Lee. Another part of the problem has been the rapid-fire procession of flankers, which has made it hard for new celebrity scents to garner attention. Says Grant, new celebrity scents are “coming four years into the trend. Even for an A-caliber celebrity, it may be seen as a me-too fragrance. That’s the challenge. There is just incredible saturation.”  

Another challenge is the fickle nature of celebrity in general. Who’s hot and who’s not can change quickly. Target audiences for most celebrity perfumes skew younger than traditional fragrance customers, and this crop of consumers can quickly switch allegiances.  

The car’s the star.

“Celebrity fragrances, most of whom target youth, are finding it tough because young women are fickle and are not loyal to brands,” says Lee of Euromonitor. “Celebrity fragrances appeal to young women who seek out these products to connect to their idols…However, love affairs with celebrities are merely temporary, with young consumers quick to move on to new trends.”

A celebrity’s personal life is another factor. Curious Britney Spears was a top performer in 2005, but some wonder if the young entertainer’s very public meltdown has hampered sales of her most recent scent Midnight Fantasy. Likewise, it is too early to tell if Paris Hilton’s time behind bars at a Los Angeles jail will help or hurt sales of her scents.

Not discouraged by the behavior of her contemporaries, singer and actress Jessica Simpson has signed a global licensing agreement with Parlux Fragrances to launch a signature fragrance to debut in July 2008 in the U.S., with a later international launch. Parlux Fragrances also holds licenses for Maria Sharapova and Paris Hilton fragrances and watches.   

Down, But Not Out    

While celebrity fragrance’s fifteen minutes of fame appear to be nearing the end, these scents aren’t out yet. Despite the clutter, select celebrity fragrances have proved successful, especially in the men’s market.

In fact, one of hottest men’s launches in recent years was Sean “Diddy” Combs’ Unforgivable, a fragrance made through his alliance with Estée Lauder. Not only has this celebrity scent been well received by customers—a limited edition version (priced at $300) sold out at select Saks Fifth Avenue stores in December 2005—Unforgivable snatched a FiFi for 2007 fragrance of the year: Men’s Luxe.

“The scent benefited from Sean Diddy’s fame, great public relations surrounding the limited couture edition, controversial advertising, and in my opinion a very good scent,” notes Euromonitor’s Lee.

Another home run in men’s fragrance has been Derek Jeter Driven, which captured a FiFi for best packaging in the men’s popular appeal category. The scent’s success has prompted Avon to expand Driven into men’s skin care, looking to capitalize on the Yankee shortstop’s appeal with men (for his baseball skills) and women (for his good looks). Along those lines, Antonio from Latin film star Antonio Banderas also won a 2007 FiFi award for Fragrance of the Year: Men’s Popular Appeal.

Celebrity scents continue to rain down on the women’s side of the market too. One of the biggest launches came on July 7, when Prince’s first fragrance, 3121, bowed in concert with a special private show for 1,400 fans at Macy’s in Minneapolis (Prince’s home town), a simultaneous online charity event (in which 7% of the sales were divided between seven charities), and a sold out performance at the Target Center later that evening.

3121 is a white floral that features a purple Bormioli bottle reminiscent of emerald cut diamonds with a 22 karat gold 3121 decoration, created by Cervé, on the front panel. According to Larry Couey, president of Revelations Perfume & Cosmetics, the famed musician was highly involved with the development of 3121’s juice as well as its packaging.

 “It was [Prince’s] preference to work with a smaller firm,” says Couey. “He wanted to be sure his creative input wasn’t lost in translation in any way. It made for an intimate relationship from the beginning.”

Stars Attract, But Juice Sells

The clock may be ticking for the celebrity scents, however, famous faces will continue to play a role in fragrance marketing. Stars are being tapped to invigorate sales of existing scents and to serve as spokesmodels for new launches. Along those lines, “American Idol” reject/Academy Award winner Jennifer Hudson will promote Avon’s classic Imari fragrance and a new flanker scent called Imari Seduction.

Coty recently drafted NFL quarterback Tom Brady to help revitalize Stetson. It’s true: having drafted NFL star Tom Brady as the new face for its venerable Stetson brand, Coty is giving the fragrance’s packaging a facelift as well.

When Brady is unveiled as the new spokesperson in the fall (replacing actor Matthew McConaughey), the juice will be housed in an updated container that will still carry the lines of the classic Stetson bottle. Coty is also giving the cap a more masculine look.

Stacie J’s Golden was inspired by Stacie J of The Apprentice.

“The packaging is moving to a modified carton and bottle design that is more modern yet still reflects the rugged western spirit of the Stetson brand,” says Steve Mormoris, senior vice president, global marketing, Coty Beauty. “The graphics use a sandalwood color, and an S motif, to give the brand more modernism, exactly what Tom Brady represents: modernism and youth, as well as ruggedness and masculinity.”

Coty will put Brady’s good looks to work around the holidays; a pre-Christmas special edition package will feature a shot of Brady by photographer Peggy Sirota, whose work has appeared in magazines such as Vogue, GQ, Rolling Stone and Vanity Fair.

Despite the cache a top-notch star may add to a fragrance, it all comes down to the juice. Slick packaging and good PR can bring the curious to the counter, but it can’t make them buy an unappealing scent. And that, say some industry experts, is what happened with a good number of celebrity scents.     

“Many of the celebrity fragrances that have been released over the past year just weren’t all that good, and in particular, there were lots of really dull flanker scents,” says Robin Krug, founder of Now Smell This, a fragrance blog started in 1995 to review fragrances and provide news about upcoming launches and retailer discounts. “Based on comments I see on my website and elsewhere, I’d say that consumers are still very excited when a new celebrity fragrance is announced—especially if it is a celebrity they like. But the celebrity name alone is not enough to sell the fragrance. It has to smell good.

Cult of Personality

Have we seen the last of the celebrity scents? Not exactly. Here are some recent and upcoming celebrity launches.

Hitting the Right Note? With Celine Dion, Jennifer Lopez and Sean Combs paving the way, musicians will play a larger role in the fragrance market. New deals have been inked between Procter & Gamble Prestige Products and Christina Aguilera as well as between Coty and Gwen Stefani, and be on the look-out for new fragrances from R&B singer Usher through an alliance with Liz Claiborne.

Are Cars the Next Stars? Move over Hummer; there’s another vehicle revving its engine. This summer, Aramis/Estée Lauder will introduce Mustang, a new men’s fragrance, through an alliance with Ford Motor Company.  Mustang’s bottle is simple, sleek and masculine with a graphite cap and collar, silver hot stamping and the Mustang Pony logo on the label. It is housed in a graphite reusable collector’s tin featuring Mustang’s front grill.  

And, a Cadillac spokesperson confirmed that it has “licensed” a company to pursue the “idea of a fragrance product.” However, it is not yet a done deal, according to the company, and may not be destined for sale in U.S. markets.
Got a Niche? Not every celebrity fragrance features a big name. New alliances with lesser-known, but up-and-coming stars are being forged in an effort to tap into niche markets.

According to NPD’s Grant, Hispanics and African Americans find packaging and celebrity names important when it comes to beauty purchases. This bodes well for companies such as Revelations. This spring, the Huntingdon Valley, PA-based company launched Florecita, a scent for girls created with Mexican actress Shelbie Bruce as well as Stacie J Golden, a fragrance created with model and reality T.V. star Stacie J.

“It’s an opportunity for us to target specific audiences, which a lot of fragrances don’t do,” Couey, says of the alliances with Bruce (who starred in “Spanglish” with Adam Sandler) and Stacie J, of  “Apprentice” fame.

Like with 3121, unique packaging was a key design element for both scents. Packaging for Stacie J’s Golden (designed by Couey), was a FiFi finalist for best packaging: women’s popular appeal (as well as fragrance of the year in the same category). For Florecita, Revelations chose different color caps meant to create a “bouquet” appearance on counter.”