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TIME: Almanac 1995
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<text id=91TT2159>
<title>
Sep. 30, 1991: Fragrances:The War of the Noses
</title>
<history>
TIME--The Weekly Newsmagazine--1991
Sep. 30, 1991 Curing Infertility
</history>
<article>
<source>Time Magazine</source>
<hdr>
BUSINESS, Page 50
FRAGRANCES
The War of the Noses
</hdr><body>
<p>In an aromatic onslaught, cosmetics giants launch three new
perfumes with a decidedly '90s theme: romance
</p>
<p>By Martha Duffy--With reporting by Linda Williams/New York
</p>
<p> Tropical beach, blazing sun, men in white suits, winsome
native children. A horse gallops along the shore as a light
plane lazes overhead. A beautiful woman sits in a convertible,
adored from afar, drenched in diamonds, caressed by a soft-focus
camera. The plane lands, several dapper gents step out and
launch a poker game. As the stakes escalate, the sexiest of them
frets, "I'm a little short." The woman takes charge. "Not so
fast," she says, removing a huge sparkler and tossing it onto
the table. "These have always brought me luck," she purrs.
</p>
<p> The star of this semi-surreal video is Elizabeth Taylor,
which is fortunate, since a lot is riding on the spot, dubbed
"White Diamonds: The Movie." Cosmetics giant Elizabeth Arden is
gambling on Taylor's beauty, celebrity and legendary appetite
for diamonds to launch its new perfume in the face of tough
odds. Times are shaky in the $18.5 billion U.S. cosmetics and
toiletries industry, yet no fewer than three giants are
launching new fragrances this season, reportedly spending as
much as $25 million each on advertising alone.
</p>
<p> With the floral White Diamonds competing against Estee
Lauder's spicy SpellBound and Calvin Klein's fruity Escape,
there will be no escaping the coming onslaught on the American
nose. More than 70 million fragrance strips have been bound into
magazines, and in department stores spray-happy models are out
in force. This month's Elle arrived for 14,000 up scale
subscribers looking like a bulbous videocassette--which in
fact it was. Lauder had pouched its TV promo for SpellBound in
a sort of marsupial setup.
</p>
<p> This marketing mania is based on necessity. Department
stores have traditionally been the point of sale for
high-quality perfumes, but, as Lauder CEO Robin Burns observes,
"the stores are in turmoil. You don't see so many consumers with
shopping bags." Like many luxury goods, cosmetics have faltered
in this recession. The aggressive, gotta-have-it-all mind-set
of the 1980s has evaporated.
</p>
<p> Swept out of favor is the sexy image of '80s best sellers
like Yves Saint Laurent's Opium and Klein's Obsession. The cry
now is for romance. Lauder's ads for SpellBound simply show two
people looking into each other's eyes. In a Vogue interview,
Klein rhapsodized about days with his wife Kelly that have no
edge and precious few events.
</p>
<p> Arden has the least anxiety about attracting customers
because Taylor has just embarked on a national tour. "Bringing
Elizabeth Taylor into a store is more than anyone else has to
offer during a recession," says Arden vice president Clare Cain.
The actress proved her merchandising powers with her first
signature scent, Passion. Why does Liz's succeed while other
celebrities' fragrances have failed? Arden CEO Joseph Ronchetti
explains, "Liz Taylor is an individual that a lot of people will
relate to. We've all known people with drinking problems, we've
all had weight problems, and she's coped so beautifully." He
adds, "And she is really an outstanding beauty." For those who
grew up on National Velvet, that may be the most important
factor of all.
</p>
<p> The race is on and will heat up as the holiday buying
season approaches. The early advantage seems to go to Escape.
"It's a killer," says Allen Burke of Dayton Hudson stores. "A
runaway hit." But the three giants are most concerned with
long-term sales and permanent market niches. That takes a big
budget and intelligent strategy, which is more than what's
behind many minor scents, including most celebrity and designer
fragrances.
</p>
<p> The vessel that holds the fragrance obsesses designers. In
the '20s, Coco Chanel cut hers from crystal in a severe,
geometric shape, setting the standard for power bottles. At the
time it spelled freedom and modernity to women, and it is still
immediately identifiable. Now companies look for a mixture of
old-fashioned quality and contemporary flair. Klein's pristine
tube for Escape began in his mind as an appurtenance in an
English travel case. Arden headed down to the rhinestone mines.
For SpellBound, Lauder added a detachable atomizer, achieving
a sort of nostalgic novelty. "Success is like a one-armed
bandit," observes Pierre Dinand, a French designer who has
created more than 300 perfume bottles, including those for
SpellBound and Escape. "To succeed, you need to have a row of
cherries. If you have four cherries and one banana, it's a
flop."
</p>
<p> Each of the new elixirs sells for about $200 an ounce
(with the lighter eau de toilette costing substantially less).
The marketing truism is that perfume is an affordable luxury;
the woman who can't afford a Chanel suit can buy the fragrance.
But if romance is on the rise now, so is frugality. Says
marketing consultant Carol Colman: "Consumers might question
cutting off something for the kids in order to buy a bottle of
perfume, when there are three or four on the dresser already."
</p>
<p> But those three or four are just what the industry is
counting on. One 1980s legacy that no one is rejecting is the
rise in popularity of a wardrobe of scents--one for the
office, another for evening, still others to match season or
mood. Brand loyalty is virtually a thing of the past. In another
trend, women are using men's scents increasingly, especially
Armani, Calvin Klein's Eternity, Chanel's Egoiste and Guerlain's
classic Vetiver.
</p>
<p> The perfume business today is a contest between commercial
calculation and customer whim, with the marketers growing ever
more sophisticated. But there are still a few wild cards in the
poker game. This fall will also see the launch of Omar Sharif's
signature scent for women, which will come in at $750 an ounce.
For this whopping sum the customer gets a Baccarat crystal
flacon and two refills a year for her life--or the perfume's.
Who knows? Four cherries and a banana? Or maybe a five-cherry
row.
</p>
</body></article>
</text>