It's no secret that all the problems in the world impact the economy and therefore consumer purchasing power and therefore also perfume prices. Whether we're talking about Donald Trump's trade policy, the war between and monopoly of large overseas carriers, or the war between Russia and Ukraine, they all directly or indirectly affect the costs of transport, raw materials, and many other factors, resulting in a higher price for the final product.
These days, we pay just as much for a "normal" perfume as for a "niche" perfume. While niche perfumes used to be more expensive because they were produced on a smaller scale and had a smaller market, that's obviously no longer the case. Niche perfumes are no longer niche and are available almost everywhere. An average bottle of Chanel or Dior easily costs 150 euros these days.
This shift naturally affects the appeal of certain brands. In my opinion, the average young adult simply doesn't have the means to afford such expensive perfumes. Moreover, the era of the "signature perfume," to my regret, is somewhat over. The average person prefers to have more to choose from and will therefore have about four to eight perfumes in their collection. Paying eight times the grand sum of 150 euros is, I think, beyond the reach of most people.
The world of Arabic perfumes jumps on this wagon very cleverly. Primarily in Dubai, they produce excellent perfumes in very attractive bottles, priced around 30 euros. Many of these productions are dupes of well-known fragrances, but unique creations also made. These Arabic perfume houses are incredibly creative, on-trend, and have a strong presence on social media. Almost every month, a new perfume is released and the most amazing creations are launched. The younger generation is extremely sensitive to this, and with prices around 30 euros, it's almost acceptable to buy ten or twenty of these perfumes.
This market movement means of course almost the end for the long-established perfume houses. Besides the enormous rise in production costs, they will clearly notice a loss of market share due to the rise of these trendy Arabic perfumes. Therefore, besides rising production costs, they will also have to raise their prices due to the reduced market share. Perhaps not the most attractive step, but it is inevitable. Now Chanel or Dior won't disappear from the market, because of this; they are too popular for that. But customers are now more likely to have one bottle of Chanel and ten Dubai perfumes, rather than five bottles of Chanel including the whole body care range.
The effect of this trend is, of course, most visible to all the other smaller or less popular perfume brands. There are (or should I say were) a truly enormous number of perfume brands, and for years these brands produced their entire range. Only occasionally some fragrances were discontinued. That's completely reversed now. Currently, a great many perfume houses are ceasing production entirely or choosing to continue with only their bestseller. You also see flanker after flanker being released, only to be discontinued again after two years. You have to do something to grab the end user's attention, right?
There are also perfume houses, such as Lalique, which previously produced large quantities that subsequently ended up on the gray market at incredibly low prices. They are now deciding to reduce their production runs and offer them only to select dealers. A smaller production run means lower costs, and by making the offering more exclusive, the chance of appealing to consumers also increases.
Another characteristic is that the first generation of perfume lovers is slowly disappearing. Perfume used to be a luxury product. Few people wore perfume or had the money to afford it. The fact that Chanel No. 5 was already on the market in 1921 doesn't mean its popularity was high. It was worn by a select group of people. Daily perfume use only became widespread worldwide in the 1950s or 1960s, and somewhere around the seventies did it become a part of daily life.
Most people who chose their signature fragrance back then, for example, Chanel No. 5 or Lanvin's Arpège, would now be 75 to 100 years old. Needless to say, many of these people are no longer around, and therefore, the demand of old classics is much lower than it was 20 years ago or so. Chanel No. 5 is so iconic that it will certainly not disappear, but Lanvin's Arpège held a notable second place for many years and Arpège production has unfortunately stopped. Jean Patou was enormously popular in the last century. The perfume Joy was one of the most expensive perfumes in the world and was worn by some very big names. Production had already been discontinued before, to be revived about ten years ago. Unfortunately, this new production was very short-lived, as no one was interested in these very classic fragrances around 2015.
However vintage is hot and that's precisely why we're seeing more and more posts on social media from people returning to classics. Of course, we've had years of fragrances that were primarily unisex, woody, or gourmand. There's always a new trend, and perhaps the distinctly heavier character of Dubai perfumes has contributed to the younger generation's renewed openness to the classics of yesteryear. Perhaps the Chanel No. 5 genre will finally shed its "grandmother image," and we'll realize that the perfumes of yesteryear were sometimes true masterpieces. Because no matter how you look at it, there comes a time when we'll get tired of pistachio and Ambroxan and just want to smell sexy again, right?
Judith
Founder