The cost of purchasing premium perfumes recently started surging in a very unlikely manner. For once, inflation is not the answer to this reason. The rise in prices is linked with consumer behavior during these uncertain times.
Surprising link: Human behavior and perfume prices
Compared to 2020, the average retail price of perfumes increased by 15 percent, three times more than the average 5 percent increase two years ago. Turns out, that this rise is a result of how we behave during troubling times. “General inflation is not necessarily the story here. We started to see this swell of growth during the pandemic where consumers were willing to trade up to more premium fragrances,” explained Larrisa Jensen. Jensen is the Vice President and a beauty industry advisor from NPD, a market research firm. “Scents allow us to escape, even momentarily, and experience a different emotion,” she added.
Market research reveals that American shoppers are paying more for food, shoes, clothes, vehicles, and beauty or self-care products are no different. Sales of fragrances have been booming since the pandemic. Last year alone, the sales of perfumes rose over 52 percent. Additionally, the report also reveals that fragrances over $175 doubled in the number of units sold. Fuelling these prices is the demand for eau de parfums. Eau de parfums are perfumes that contain a higher amount of fragrance oils. They help in making the fragrance long-lasting.
A subscription service for perfumes: Try before you commit
Luxury fragrance maker Estée Lauder is also noticing similar trends in the company’s sales. Stephane de La Faverie, the president and global brand president of AERIN and Estée Lauder is overseeing the company’s prestigious lines. “We are very optimistic that the interest in luxury fragrances will continue, thanks to exciting innovations, new fragrance markets embracing this sub-category, and consumers always wanting a little piece of luxury in their lives,” stated La Favorite. Moreover, as consumers are gravitating towards upscale perfumes, La Faverie stated that the company is encouraging purchases with sample trials, gifting, and engaging. The strategy is further enhanced with Scentbird, a subscription service for perfumes. Over 450,000 subscribers receive trial-size samples of various luxury fragrances for just $15.95.
The service is helping people try and find their preferences before committing. In just a year, the firm’s subscribers jumped by 50 percent. “We learned that as more people were homebound because of the pandemic restrictions, they were finding ways to still feel good. They were buying fragrances for themselves and scented candles and fragrances for their homes,” stated Bettina O’Neill. O’Neill is scentbird’s senior vice president of business development.