Zara has made a 180-degree turn in its perfume strategy. I offer a quick analysis in the form of a "Before & After".
- Licence entrusted to the Puig group - a traditional specialist in selective beauty (like Interparfums, L'Oreal, Coty, ...)
- Positioning of the perfumes created by Puig: the "me too" of luxury perfumes.
The "Rosa" collection therefore strangely resembled Chanel's Excusifs, or Dior Homme …
- Distribution: Zara stores.
- Results: quite disappointing (an estimated turnover of 80 million Euros).
- Sucontracting agreement with Maesa, a full-service beauty specialist for supermarkets and mass-market fashion brands.
- Positioning: a collection of 13 fragrances conceived like a fashion collection, i.e., with new perfumes every year (introduction of new fragrances and withdrawal of those that do not sell). These perfumes replicate the codes of brands such as Diesel and Hugo Boss.
- Price: between 10 and 20 Euros (retail price) – i.e., much lower than selective perfumery prices.
- Distribution: through the 1200 Zara stores.
This is a major change: switching from traditional perfumery - luxury / slow-moving / selective – to perfumery that is trendy / fast-moving / inexpensive. The Zara perfume is now conceived like the Zara collection: inspired by top fashion designers, with quality ("no compromises on the composition"), and rapid rotation. Perfume thus leaves perfumeries to become an affordable product and an impulse buy in fashion boutiques. The reason why this business model is likely to succeed lies in the rotation/price combination. Until now, most often, fashion brands that boasted of their own perfume positioned them in the selective price scale (even those from Victoria's Secret are in the $25 / $50 dollar range). I am willing to bet that Zara's example will be carefully analyzed ... and copied.