L’Oréal and Louis Vuitton compete in the

niche fragrance sector

Source: Mintel 16-09-2016

“Niche fragrances continue to be a growth area in the

fragrance sector, with well-known brands acquiring niche
players as well as launching exclusive fragrance collections
to compete.”
For further information please see Mintel’s Fragrances – UK,
August 2016 Report.

What we’ve seen

● In 2016, L’Oréal acquired the Atelier Cologne brand, whilst Estée Lauder
acquired By Kilian.
● Mintel’s Fragrances – UK, August 2016 Report shows that whilst the overall
category has shown a decline in value by 2% in 2015, the fine fragrance sector has
declined by a lower level (women’s fine fragrances declined by 2% in value
compared with 4% decline in women’s mass-market fragrances for example).
● 26% of people are interested in luxury fragrances that are created by high-
end brands whilst 20% are interested in scents that are not widely available.
● 32% of people are interested in fragrances with natural ingredients.

Niche Acquisitions
Niche and artisan fragrances continue to offer competition to well-known brand
names as consumers show strong interest in fragrances with niche characteristics. As
such, many well-known brands have responded with acquisitions of niche players.

L’Oréal is the latest to acquire a niche brand, with the acquisition of Atelier Cologne.
Atelier Cologne uses natural raw ingredients in its formulations, largely sourced from
France, with the brand maintaining exclusivity with only six direct-operated stores.

This report is supplied in accordance with Mintel's terms and conditions. Supplied to University of Sussex
Library.

© Mintel Group Ltd. 1

Earlier in 2016, Estée Lauder acquired By Kilian, a Paris-based prestige fragrance
brand, whilst in 2014 the company acquired La Labo and Editions de Parfums
Frederic Malle, both high end fragrance brands.

Exclusive fragrance ranges

As well as acquiring niche labels, well-known prestige brands are also launching their
own niche fragrance ranges. With 26% of people showing an interest in luxury
fragrances created by high-end brands, niche fragrance ranges are a way for well-
known brands to enter the sector.

FIGURE 1:USAGE AND INTEREST IN FRAGRANCES WITH NICHE

CHARACTERISTICS, JUNE 2016
“Which, if any, of the following types of fragrances have you ever
used? If not used, would you be interested in using in the future?
Please select one option per product.”

Base: 2,000 internet users aged 16+

LIGHTSPEED GMI/MINTEL

In September 2016, Louis Vuitton launched its first fragrance collection in 70 years,
which the company plans to sell in only 180 of its 460 stores. The fragrance launch is
an attempt by the brand to target ‘middle’ income consumers, who are priced out
from purchasing fashion items from the brand, but who still aspire to be associated
with it.

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Library.

© Mintel Group Ltd. 2

FIGURE 2: Louis Vuitton Turbulances Fragrance, August 2016

Louis Vuitton Twitter/Mintel

The quality of ingredients are a key differentiator in the niche fragrance sector. Louis
Vuitton has highlighted the ingredients of its fragrances (Grasse roses and jasmin) as
well the innovative CO2-extraction process, developed to preserve the essence of the
flower. 

What it means

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Library.

© Mintel Group Ltd. 3

● Niche fragrances continue to be a growth area in the fragrance sector, with
prestige fragrances showing a smaller decline in value than mass-market fragrances
in 2015. Consumer desire for exclusivity as well as fragrances with high quality
ingredients is driving the trend.
● Well-known brands are maintaining a presence in the sector with the
acquisition of niche players, such as L’Oréal’s acquisition of Atelier Cologne.
● Brands are also launching their own fragrance collections to play in the niche
sector, such as Louis Vuitton’s first fragrance collection in 70 years. This enables
well-known brands to use their brand name to gain wide appeal, whilst at the same
time offering a degree of exclusivity to appeal to the niche fragrance consumer.

This report is supplied in accordance with Mintel's terms and conditions. Supplied to University of Sussex
Library.

© Mintel Group Ltd. 4