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Ivanka Trump, Untouchable Launch; Celeb Scents Still Providing A “Pop”

This article was originally published in The Rose Sheet

Executive Summary

Although likely not the next Justin Bieber Someday, new celebrity scents from Parlux and Avon could be “good basic money makers,” according to The NPD Group’s VP and Senior Global Beauty Analyst Karen Grant.

New celebrity-fragrance launches from Parlux Fragrances and [Avon Products Inc.] signal industry’s enduring faith in such ventures, which can generate a burst of revenue and then, in most cases, quietly fade away.

In a Feb. 20 interview, The NPD Group’s VP and Senior Global Beauty Analyst Karen Grant suggested that Parlux’s Ivanka Trump and Avon’s Untouchable, fronted by Los Angeles Clippers star Chris Paul, could each be a “good basic money maker.”

The next Justin Bieber Someday? Doubtful.

In a market saturated with star-powered scents, new entries tend to come and go, providing firms “a good ‘pop’ for the season or the year,” Grant said.

She noted that “part of the rush is going to be how recognizable the celebrity is.”

In the case of Ivanka Trump, “it’s a question if the consumer will know of Ivanka and want to be like her,” the analyst said, noting that celebrity fragrances typically skew to a younger demographic.

Parlux Banks On Trump

Entrepreneur and television personality Ivanka Trump is the newest addition to a loaded Parlux celebrity roster, which also includes Jessica Simpson, Rihanna and Paris Hilton.

Known for her stern but engaging role on “The Apprentice,” Trump “is a true inspiration of what epitomizes strength in grace and beauty,” Linda Levy, senior vice president and chief marketing officer at Parlux owner Perfumania Holdings, says in a Feb. 13 release.

“I enjoy wearing fragrance everyday and always found myself searching for the one signature scent that reflects the things I love,” says Trump, whose lifestyle brand also includes fine jewelry, footwear, handbags, outerwear, sunglasses, apparel and home design.

This is her first fragrance.

“With all of her products, [Trump] could have appeal,” Grant noted. “And Ivanka is a bit of an empire, so fragrance falls within that to round out her portfolio.”

Ivanka Trump includes top notes of Italian bergamot, apple and peppercorn, which warm to a “lush bouquet” of jasmine, rose and peach blossom, according to a product description. Amber, vanilla, patchouli and cedarwood comprise the base, delivering a “meaningful and lasting impression.”

The fragrance is available as a eau de parfum in 3.4-oz. and 1.7-oz. sizes for $78 and $62, respectively. The scent also comes in a 6.0-oz. body lotion ($35). Products bowed in February in Macy’s, Lord & Taylor and other department stores nationwide.

That distribution works in Parlux’s favor, Grant pointed out. “Macys tends to be a juggernaut with celeb scents and making them work. Launching there is the place to be in the prestige channel,” she said.


Ivanka Trump

Parlux leadership has conveyed differing messages in recent years regarding the firm’s investment in celebrity fragrance.

Prior to Perfumania’s $118 million acquisition of Parlux in April 2012, then-CEO and Parlux founder Frederick E. Purches expressed reluctance to signing additional personas to the firm’s already celeb-heavy offering. “[Maybe] a celebrity sings, but they don’t understand anything about the licensing business, whether fragrance or jeans, whatever it might be,” he said in a February 2011 interview (Also see "Parlux Has “Enough" Celeb Fragrances, Says CEO, Reaffirming New Direction" - HBW Insight, 14 Feb, 2011.).

Neil Katz held Parlux’s CEO spot from July 2007 to January 2010 when he resigned “due to philosophical differences regarding the future direction of the company.” In a recent interview with “The Rose Sheet,” Katz noted that “a lot of people got burned” with celebrity scents over the years. Companies “gave these people a lot of money, then couldn’t get sales for it. They weren’t big enough. There weren’t enough people identifying and wanting to be them,” he said (Also see "Industry Vets Launch Boutique Fragrance Firm; Miss Universe Is First Client" - HBW Insight, 21 Jan, 2013.).

Katz is now the founder and head of Omni Scents, which is developing fragrances under recently announced partnerships with the Miss Universe Organization and Maxim Magazine.

Since being purchased by Perfumania, Parlux has turned out Dazzle by Paris Hilton and Jessica Simpson Vintage Bloom (Also see "Parlux Rolls Out First Celeb Scents Since Perfumania Merger" - HBW Insight, 4 Jun, 2012.).

Avon Teams With Chris Paul

Following up on Derek JeterDriven, Avon is building its men’s fragrance business with the introduction of Untouchable. Six-time pro-basketball all-star Paul is the face of the new scent.

Untouchable “captures the thrill of hitting the court when the crowd is going wild, sinking the game-winning shot and bringing home victory,” according to a Feb. 7 release.

Rolling out on Father’s Day, the fragrance celebrates Paul as a father of two and an “incredible role model,” according to Meg Lerner, vice president of Avon North America marketing.

Untouchable will be available for $25 through Avon representatives.

Grant offered her perspective on the scent: “I think it’s more a component of building off Driven, the Derek Jeter fragrance. They don’t report, but we heard it was a success, so this is kind of an evolution for them.”

Avon could be counting on women buying the fragrance for their sports-fan husbands, she suggested.

Avon’s celebrity-fragrance portfolio includes Outspoken and Outspoken Intense under the firm’s partnership with singer and pop icon Fergie. Outspoken was the “most successful fragrance launch in the company’s history,” according to Avon’s website.

The firm also has marketed scents through deals with spokesperson Reese Witherspoon, as well as actors Patrick Dempsey, Salma Hayek, Zoe Saldana and Ashley Greene.

Avon, which has struggled over a string of dispiriting quarters, is currently working to improve its marketing and merchandising execution and is taking measures to be “more focused on understanding the consumer insights and making sure we are more relevant [in the U.S.],” CEO Sheri McCoy said during a Feb. 12 earnings call (Also see "Avon Eyes North American Fix, Brand Building In 2013" - HBW Insight, 18 Feb, 2013.).

The firm’s fragrance sales were flat on a reported basis and up 2% on a constant dollar basis for fourth quarter 2012. Sales in its North American division, which represents about 15% of the firm's overall business, declined 12% to $516.2 million in the fourth quarter and fell 8% to $1.91 billion for the year.

Grant expects celebrity fragrances to continue to deliver, if not at a consistent “mega-hit” level.

“We’ve seen them come and abate and come up again. It really depends if someone can come along and tip the apple cart and create a surprise,” she said.

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