Selling the Dream ... one bottle at a time.

Last week the New York Times published an article, which if true, will certainly stand the luxury industry on its ear.

The story, entitled "The Sweet Smell of Nothing" documented the decrease in fragrance sales nationwide.

Published on Valentine's Day, Times writer Natasha Singer was most interested in sales of perfumes as a gift item.

Singer writes, "Like red roses and heart-shaped boxes of chocolates, perfume has traditionally been one of the fail-safe offerings of Valentine’s Day. But this year, as couples sit down to romantic dinners, a small but growing cohort of American women will emit scents that are more corporal and less Chanel."

According to NPD, a research firm sourced in the article, department stores carried 1,160 different fragrances last year, compared to 756 in 2002.  Yet sales have declined from $2 Billion in 2002 to $1.97 billion last year.  About 15% of women say they don't wear fragrance at all according to a recent study conducted by the group. (That's still 85% of all women wearing fragrance - quite an impressive percentage if you ask me). 

Apparently women have dropped off wearing fragrance for a variety of reasons...from significant other's objections to specific fragrances, to an attempt at being more considerate of others who come into close proximity (you know - that stranger on the elevator who keeps sniffing while standing next to you).

This information on the heels of Fashion Week New York is not good news, given that many luxury brands are intentionally built around lipstick and perfume sales.  Grand, luscious lifestyle images are built ever so carefully with the express intention of giving the SAHM (stay at home mom) in Valparaiso, Indiana a chance to buy into the dream with the purchase of a bottle of Thierry Mugler Angel or a tube of Chanel Coco Red Lipstick.

To my mind, the drop in enthusiasm for these "entry level luxuries" isn't so much a desire to accommodate the stranger in the elevator and their potential allergies, as it is a change in the accessibility of luxury. 

Call it the "Design for All Revolution" but with brand names like Vera Wang and Isaac Mizrahi, available widely in bargain stores like Kohls and Target, these days consumers perceive access to luxury brands quite differently than just a few years ago.  Why settle for a measly tube of lipstick when you can have an outfit that sports an actual couture label? (of sorts).  Furthering the situation is the availability of excellent knock-offs ala 9-West, ect.  Prada shoes that were seen on the runway last week are, as we speak, being replicated with fair authenticity, many times in factories just down the street from the brand names', and come this fall will be available at about the same cost as a bottle of high end perfume.   

This perception is certain to be felt in cosmetic markets in increasing levels for years to come.  Beauty publicists and marketing executives need to find a new way to "sell the dream" when it comes to luxury fragrance and mascara.

images - above - the perfume wall at Sephora; below, Simon Doonan of Barney's gets a playful spritz.

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