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FEATURE
whwytriright 20 Fragrance Forecast
company that owns or licenses such scent brands
ZELDA’S AROMATICS
154 Esopus Avenue, Kingston, NY 12401
a s Tom my H i l fi ger, Tom Ford a nd Sea n Joh n,
Toll Free: 800-647-8202
reported that its fragrance sales fell by 20 percent
Tel.: 845-339-8202 Fax: 800-647-8202
Email: zeldas1872@aol.com
during the fourth quarter of 2008, and quoted its
Website: www.zeldasaromatics.com
chief executive, William P. Lauder, as saying it was,
“One of the worst holiday seasons in decades.”
more people willing to take chances with their scents.”
Heading into 2009, the picture hardly looked any bet-
Zelda’s does well by its perfume oils, bulk priced at $30
ter, with NPD reporting that prestige fragrance sales had
per 16 oz. container ($18 per 8 oz., $12 per 4 oz., $7 per 2 oz.),
dropped ten percent for the fi rst half of the year, as compared
and its 1/3 oz. perfume roll-ons, priced at $1.90 each. Hand-
to January-June 2008. And while new fragrance launch sales
poured colognes are priced at $1.90 each for 1/3 oz. sprays,
generated $57 million in the fi rst six months of ’09, that still
$1.25 each for 2 oz. bott les, and $2.75 to $2.95 for 2 oz. sprays.
represented a decrease of 17 percent from the previous year,
“Th ere is a lot of competition with wholesale body oils right
due in part to a decline in new launches of women’s fragrances,
now,” she says, noting that the roll-on category in particular
down 31 percent. New launches of men’s fragrances were up
has taken a hit for Zelda’s. “We’re known for the quality of
by 23 percent. Currently the perfume industry’s annual sales
our products, but lately, sometimes customers are too afraid
are estimated at $25 to $30 billion. However, according to
of the economy to be willing to pay a litt le more.”
NPD, while overall sales during the period may have declined,
Zelda’s incense off erings have picked up some of the
premium fragrance products, defi ned as those priced at $100
slack. “People know what they’re gett ing there. Th ere aren’t
and above, have actually increased, generating $26 million
any buzzwords you need to come up with — it is what it
in sales for Q1 2009, a ten percent increase over Q1 2008.
is.” Bundles of 100 eleven-inch sticks are off ered at $1.85
And in a perfume industry application of the trickle-down
each, while bags of 200 cones are priced at $5 each. Th e
economic theory, many experts believe that as top tier sales
company also off ers a special of 24 bundles of approximately
increase, so too will sales of lower priced items.
100, eleven-inch sticks at $44.40 each, and a fl at shipping
Also expected to help in the business’ recovery is the fact
rate of $9.80.
that brand loyalty may be becoming increasingly deferred.
Incense is the longest established component of Paine
According to the eighth annual, “Luxury Goods Worldwide
Products’ business, according to Vigue. Refl ective of its
Market,” study published by global management consulting
Maine headquarters, Paine’s scented products mostly revolve
fi rm Bain & Company, more cosmetics consumers this year
around woodsy aromas; its incense, available in balsam fi r
expressed a willingness to trade down to premium or sub-
or red cedar scents, is available in cone, stick, or log shapes,
premium products. Such has been the case at Zelda’s. “We’re
priced at $4.50 to $7.50. Paine also off ers a range of burners
adding new products all the time, but it all seems to even out,”
beyond the standard ash catchers that many incense sellers
Briglia says. “Some things go out, others come in, but our sales
off er. Log cabin-styled burners, priced $7 to $12 depend-
have remained fairly steady.” While brands like Coach, Juicy
ing on size, come with ten or 20 pieces of incense as well.
Couture and Black Code Armani, which appeal to younger
Brass incense holders, featuring fl ora or fauna, go for $8 to
consumers, continue to be strong sellers, Briglia notes that
$12, depending on design. Scented pillows, sachets and hot
there is also a growing willingness to “mix in” older fragrances,
pads are also available, priced at $5 to $20 depending on
like Karl Lagerfeld, as a means of experimentation. “I’m seeing
item and design, while its balsam-fi lled draft stops, priced at
less of the, ‘I want Chanel No. 5, and that’s it,’ att itude,” she
$14 each, have been their best sellers recently. “Stores have
says. “Th ere
typically been selling out of those early, each of the past few
seem to be
PAINE PRODUCTS INC. holiday seasons.”
P.O. Box 1056, Auburn, ME 04211
Incense sales are also burning up at Killer
Toll Free: 800-524-0546
Tel.: 207-782-0931
Beads (www.killerbeads.com), according to sales
Website: www.paineproducts.com
manager, Michelle Mosscrop. “Over the last six
Continued On 24 whwytriright
22 December 2009
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