Poweratti Whiffs

Chanel, Christian Dior, Estee Lauder enjoy a super premium positioning and also are a part of a select group that every other brand in its niche dreams to enter. DL Narayanan tells Kunal Majumder about the fuzzy positioning these high-end perfume brands fall prey to in the Indian retailscape and suggests remedial steps.

From a simple fragrance that epitomised the luxury of the kings and queens of yore, to its emergence as a complete lifestyle label, the premium perfume has defined the success story of many a perfume house. Undoubtedly, it was the id, ego or supergo that perfumers played on then. And, even today it is this simple Jungian theory that has reinvented the principles of marketing. Perfume brands not only command huge respect, they are also the power builders with the super rich forming the niche clientele.

Signature brands


Chanel, Christian Dior and Estee Lauder form the exclusive 'Black' club of the international fragrance business. Why Black? Simply because all these brands have the classy black for their branding and packaging. Moreover, market forces recognise the undisputed position these brands command. There are other labels like Biotherm, Clinique and Lancome which have dominated the premium perfume market in the last few decades through their indirect cartel. These labels together enjoy not just a super premium positioning but also are a part of the cartel that no other brand could dare to enter. They have also controlled the sales pattern in this segment of the fashion and lifestyle industry. For instance, limited edition products that are available at a very premium price for a limited period. Even entry to international cosmetic fairs like Cosmoprof (Italy) and Cannes (France) is restricted and only by invite.

Retail bazaar

Internationally, premium perfume brands are available in dutyfree shops at airports, department and lifestyle stores. The reason that attracts these brands to the dutyfree shops is the high average transaction value (ATV) of the high fliers. These are the consumers who have less time and more money. They are ready to spend the best of money to get the best of product and what better place to get their attention than the airport? Apart from liquor and cigarettes, perfumes are the best selling products at dutyfree shops and have a high sales conversion ratio. Department stores in the US have helped push the price of the product towards the higher end.

A typical department store consists of multiple levels. The entrance is dominated by fragrances which are typically called perfume arena or house. These are in turn controlled by powerful perfumes brands like Chanel, Christian Dior, Lancome, Clarins, Biothern and Estee Lauder. While these find their places at the entrance, the rest of the brands try to settle down in the peripheries of the area. This is similar to a static parabola (Check figures 1,2).






PB-Premium perfume brand; NPB-Non-premium perfume brand