FRAGRANCE MARKET TRENDS - Swscc

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FRAGRANCE MARKETTRENDSPREPARED FOR SWSCCCONFIDENTIALAugust 2019

FRAGRANCE MARKET TRENDSSWSCC August 20192

GLOBAL NEW FRAGRANCE LAUNCHES OVER TIME3000Over the last 20 years: 800% growth in annual launches Niche brands went from 21% of newness to 44% of all new launches Est. 5% of sales dollars, but niche a potent source of inspiration for 32008Source: fragrancesoftheworld.infoFRAGRANCE MARKET TRENDSSWSCC August 201944201352018

WHY NICHE NOWThe will, the way, the underserved marketHeading1Maker MovementHeading1Bye Bye Barriersto EntryHeading1Shifting ConsumerHabitsMaker Movement ManifestoAccess to informationBig Beauty not coolCrafters, hackers, tinkerersAccess to raw materialsRetail not coolMicrobrewsRetail not necessaryDTC fragrance exploringcommunication & samplingchallenges23Artisan coffeeMetalworking, woodworkingLifestyle & educational philosophy:learn by doing1FRAGRANCE MARKET TRENDSSWSCC August 20195

CULTURE CONTINUUMNicheCommercial appealFRAGRANCE MARKET TRENDSSWSCC August 20196

CULTURE CONTINUUMNicheCommercial appealFRAGRANCE MARKET TRENDSSWSCC August 20197

THE HOURGLASS EFFECTQuality & overdose of ingredientsImmersive experienceHighly selective retail & digital distributionDriving trendsNICHEPRESTIGEMASSPerceived quality relative to selling priceFaceted, rounded, commercial fragrancesStrong communication campaignInconsistent retail experienceCopycat & me-too fragrancesNo distribution controlUninspiring retail experienceSPECIALTYFRAGRANCE MARKET TRENDSSWSCC August 20198Overdose of ingredientsImmersive retail experienceTons of seasonalityLow digital presenceDriving trends

HOW DO WE INSPIRE GRANCE MARKET TRENDSSWSCC August 20199

PERFUMER GINO PERCONTINO ON CANNABISIt has like this mango, tropical fruit,juniper. . .(yeah but it has texture that’s different,like a fleshy texture)It’s rhubarb-y, and you get thatgrapefruit, even, feeling. . .that. . .kindof bitterness.Oh, I love that one!FRAGRANCE MARKET TRENDSSWSCC August 201910

BETAHYDRANE Let’s smell!Synthetic aromachemicalProprietary to MANECitrusy, rhubarb, bitterStarting point for “growing cannabis in aperfume bottle”FRAGRANCE MARKET TRENDSSWSCC August 201911

TIMUR PEPPER PURE JUNGLE ESSENCE Let’s smell!Discovered by accidentNatural extractionProprietary technologySustainableDelivers maximum benefit at the originof the value chainA different starting point for “growingcannabis in a perfume bottle”FRAGRANCE MARKET TRENDSSWSCC August 201912

Timur Pepper Pure Jungle Essence Natural extractionProprietary technologySustainableDelivering maximum benefit at the origin ofthe value chainhttps://www.youtube.com/watch?v wZsq4pN1b9kFRAGRANCE MARKET TRENDSSWSCC August 201913

CANNABIS IN RECENT NICHE LAUNCHESCannabis effects (whether called out or not) take a hit with peppery, citrusy, fruity,green, rhubarb, vetiver facets.Dandelion FigShay & BlueFreeway4160 TuesdaysHemingwayMasque MilanoPélargoniumAedes de VenustasGamineFRAGRANCE MARKET TRENDSSWSCC August 201914Kings WoodShay & BlueGreen BubbleJusbox

COCONUT BECOMING THE NEW VANILLA (US)In the US last year, 8% of all new launches called out coconut (vs 24% called out 019952000FRAGRANCE MARKET TRENDSSWSCC August 20191520052010201520202025

COCONUT: NO LONGER JUST FOR SUMMERFRESH ESCAPE COLLECTIONJANUARY 2018COCONUT PUMPKIN LATTEBBW Hand SoapA freshly brewed cup of coconut cream,whipped pumpkin & warm praline.Fall launchBRONZED COCONUTVS PINKfruity gourmand with fresh coconut, warm withtoasted coconut, juicy mango & tiare petalsEnd of Summer/pre-Fall launchFRAGRANCE MARKET TRENDSSWSCC August 2019WHITE COCONUT CARAMELBBW Hand SoapA creamy, nutty treat of coconut flakes,toasted hazelnut & caramel swirl.Fall launchPINK SPIRITVS PINKfruity gourmand with fresh coconut,creamy praline & wild berriesFall launch16COCONUT MACAROONBBW Home CandleToasted coconut, fresh baked cookie, vanillabean, touch of spice with essential oilsFall launchCOCONUT FROSTED SNOWBALLBath & Body WorksA wintry mix of frosted coconut, North Polevanilla & winter freesia.Winter launch

COCONUT ISN’T JUST FOR SPECIALTYLove the Way You FeelKilianPacific LimeAtelier CologneFirst Instinct ExtremeAbercrombie & FitchRising SunShiseidoLuxury 200 Genderless - mainstreamMasculineFor the Asian marketFRAGRANCE MARKET TRENDSSWSCC August 201917

CANNABIS COCONUT ACCORDLet’s smell!Accord an olfactive idea, a piece of afragranceContains both Betahydrane and TimurPepper Pure Jungle Essence Creamy, warm, sensual, totallycommercialReflects wellness trend: CBD MCTFRAGRANCE MARKET TRENDSSWSCC August 201918

CANNABIS CALLOUTS IN MAINSTREAM PRESTIGE212 VIP MENPARTY FEVERA liberating herbal cocktailThis fresh summer scentopens with a spicy energy,then mellows witha herbaceous cannabisaccord in the heart, givingthe fragrance an edge of risk.The base features theseductively masculinecombination ofcedarwood and musk.MALIN & GOETZCANNABIS EDPNo lingering side effectsOnce defiantly naughty, nowinescapably chic, and always a riteof passage, cannabis has neverbeen more à la mode. Becausecannabis is a natural medicinalherb, we consider it a perfect"modern apothecary" ingredient.Our cannabis edp fragrancebalances spicy herbs with whitefloral notes and a hint of lingeringsmokiness. One whiff and you'llknow the feeling. Lazyafternoons. Fading innocence.Endless possibilities.REPLICAMUSIC FESTIVALA hypnotic daydream of Woodstock ona sun-drenched summer day, exudingrich and heady notes of cannabis,incense oil and leather accord. Lyingamongst an endless verdantlandscape of greens and fresh buds,you feel the brightness of sunshineand a red apple accord overcome yoursenses. Vibrations of sound andthrobbing melodies push you deeperinto a trance of peace as a spirituousrush of tobacco and incense accordheightens your senses and free yourmind. Day breaks into night, but thetrail of earthy cedarwood and leatherscents flow through the eveningsummer breeze, eternalizing yourstate of nirvana.FRAGRANCE MARKET TRENDSSWSCC August 201919CLEAN RESERVE HEMP &GINGERA playful and lively scent,Hemp & Ginger will delightboth the extrovert andartistic Clean lover.

CREATIVE BEAUTIFUL DIFFERENTLet’s smell!Finished fragrance, contains bothBetahydrane and Timur Pepper PureJungle Essence Cannabis the new freshTopnoteCitrusy, green, aromatic, herbaceousUnderstated nod to wellnessGenderlessTimely & on-trendFRAGRANCE MARKET TRENDSSWSCC August 201920

THANK YOU

ADDITIONAL TRENDSFRAGRANCE MARKET TRENDSSWSCC August 201922

NO-MAKEUP MAKEUP NO-FRAGRANCE FRAGRANCE“The Softies” Barely detectable Amplify—not overwhelm—your own scent Effortless Melt into skin Evaporate in intimate puffs “A deceptively expensive white t-shirt” Notice you, not your perfume Intimate, personal Pashmina, goose feathers, pink translucentcreamy skin“You. . .only better.”FRAGRANCE MARKET TRENDSSWSCC August 201923

BEAUTY FIRSTBath & Body CareHair CareColor CosmeticsFRAGRANCE MARKET TRENDSSWSCC August 201924

SCENTING COLORL'Or has a distinctive anddelicate floral scent. The firstpeach note blended with anaccord of vegetal notes is freshand sparkling. The rose,raspberry and jasmine heart isenriched with a powdery baseof balsamic, benzoin and whitemusk.FRAGRANCE MARKET TRENDSSWSCC August 201925

SEASIDE RENDEZVOUSOlfactively, these are all over the mapSong of the Siren No 49Tokyo MilkAu Bord de la MerL’Artisan ParfumeurWalk the SeaKeroseneFRAGRANCE MARKET TRENDSSWSCC August 2019Coastal Cypress & Sea FennelMolton BrownTears of Men Who Have Wronged MeBullicorn Rainbow26High TideBurberry BespokePacific Rock MossGoldfield & BanksSir GallahadIsabey

INTO THE LIGHT: 2018Shalimar Souffle de LumièreGuerlain2018LumièreLalique2017FRAGRANCE MARKET TRENDSSWSCC August 2019Ombre et LumièreArmani Privé2018FlowerbyKenzo Eau de LumièreKenzo2017J’Adore Eau Lumière2016Peau de Lumière MagiqueStarck2018Le Cri de la LumièreParfum d’Empire2017Lumière DoréeMiller Harris272016Lumière du DésertChoix2018L’Air du Temps L’AuroreCacharel2017Terre de LumièreL’Occitane2016Neroli LumièreBastide2017

HERE COMES THE SUN: 2019GratitudeLuxor Fragrances2019Flowerful Decadent MimosaYardley2019SundazedByredo2019Nivea SunNivea2019Solar BloomCLEAN Reserve2019Rising SunShiseido2019FRAGRANCE MARKET TRENDSSWSCC August 201928Sun SongLouis Vuitton2019Light di GioiaGiorgio Armani2019Sunflowers Sunlit ShowersElizabeth Arden2019L’Air du CielNina Ricci2019

AT THE BALLETFRAGRANCE MARKET TRENDSSWSCC August 201929

VIBE THINGPHLUR’s playlistsDS & Durga’s Collaborationwith Duran DuranPlaylists & music conceptsLola James HarperJUSBOX is the symbiosis offragrance & musicFRAGRANCE MARKET TRENDSSWSCC August 2019Listen to your fragranceRoom 101530

FINDING NEW PROBLEMS TO SOLVESmokers’ PerfumeGoestWide SocietySmokers' Perfume is especially made for thosewho carry the scent of cigarette smoke on theirclothes, hair, and skin. This perfume and thesmell of cigarette smoke are two halves of onecomplete unisex scent. Each "hard pack" box ofSmokers' Perfume contains five mini spray tubeswhich fit individually into any standard pack ofcigarettes for portability.Before or after smoking, spray Smokers' Perfumeon clothing, hair, or skin. It will combine with thesmell of cigarette smoke that will adaptuniquely to you, and your brand of cigarettes.Travel solutions for perfume lovers: portable, refillable,designed to comfort the symptoms of jetlag, traveler’sanxiety, and disorientation.Practical, simple and sophisticated, WIDE SOCIETY is a stateof mind.FRAGRANCE MARKET TRENDSSWSCC August 201931

AUSTRALIA RISINGFragrance brands emerging from untraditional parts of the world.In addition to these brands from Australia, we are also looking to Turkey (Nishane, Pekji), and Malaysia(Auphorie, Ningen).Goldfield & Banks AustraliaGrandifloraMap of the HeartMihan AromaticsFRAGRANCE MARKET TRENDSSWSCC August 201932Fort & Manle

CELEBRITY UPDATEPrestige 8.1Mid-Tier 2.6Mass 20.7Prestige 3.7Mid-Tier 1.7Mass 1.3Prestige 1.6Mid-Tier 1.2Mass N/AFRAGRANCE MARKET TRENDSSWSCC August 201933Prestige N/AMid-Tier 0.7Mass 5.7

GENDER FLUIDITYFrom “for both (nothing overtly fem/masc) ” to “----” to “intentionally fluid”FRAGRANCE MARKET TRENDSSWSCC August 201934

Before or after smoking, spray Smokers' Perfume on clothing, hair, or skin. It will combine with the smell of cigarette smoke that will adapt uniquely to you, and your brand of cigarettes. Wide Society. Travel solutions for perfume lovers: portable, refillable, designed to comfort the sy