In the first part of our article, we were mentioning the growing importance of digital for fragrance brands. The percentage of online sales has doubled since 2008 to achieve 9.7% in 2018. (Xerfi report – The Global Perfumes and Cosmetics Industry: the Market – May 2018 – 4,8% à 9,7%).
“Perfumes and cosmetics which were once considered unsuited to online sales due to the belief that customers needed to touch, smell and sample products are now experiencing their own digital revolution.” (Xerfi report – The Global Perfumes and Cosmetics Industry: the Market – May 2018).
What tools can brands use to increase their online conversion? How can digital become the first conversion channel in the fragrance industry?
To know more about the first two strategies that brands can implement to increase their conversion rate online, go and read this article.
3. Coming up with differentiating online content strategy
Many fragrance brands advertise during key selling periods* and more generally all year long. This trend obliges brands to catch the attention of the customers and engage them. There are different ways to attract the user’s eye:
- Humour. Making engaging and funny content will encourage the customer to watch it and potentially share it. Paco Rabanne is a great example of the industry. The brand has managed to make humour their signature and it has benefited them.
- Interactive content. Producing interactive content for online marketing campaigns is also a great way to engage customers. They feel part of the brand’s universe and, according to the assets, they can decide what will be coming next in the brand’s story. Nina Ricci has used a lot interactive story ads for their campaign Bella, launched in September 2018. Paco Rabanne was also a best practice for this strategy. When Pure XS For Her was launched, Instagram users could choose what Emily Ratajkowski would do during her “Excessive Night”. This has proven to be very successful since consumers feel closer to the celebrity. They feel like they have their word in the marketing campaign. Consequently, by being immersed in the brand’s storytelling, they will be more sensible to it when they are looking to buy a fragrance.
4. Enhancing digital in retail: digi-retailtainment
Working on increasing conversion on the digital channel also means working on digital in retail spaces. This is called “digi-retailtainment”: entertain customers in-store with digital tools. A great example would be what Chloé did for the launch of Chloé. The setup immersed the customer in the universe of the brand. It was then very easy to identify to the actress Ariane Labed and wanting to be just like her by buying the fragrance.
This strategy does not, per say, increase the conversion online. However, the digital channel plays a huge role in the buying process and therefore is a big part of the value created for the brand. Fragrance companies need to take this into account when they calculate the value brought by each channel. By doing this, we can argue the conversions thanks to digital will increase for every brand.
Fragrance companies can even cross the different strategies. By putting a machine in-store that collects consumer data in exchange for a sample, they increase the role of digital in the path to conversion.
By following these four strategies, brands have managed to become actors of the digital transformation in the luxury sector.
*Key Selling Periods are moments of the year when sales are increasing drastically and brands advertise a lot (Mother’s Day, Valentine’s Day, Father’s Day, Christmas, …).