Independent Perfumery: Growth in an Increasingly Consolidated Market~ Seven Indies Speak Out!

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Two weeks ago, we reported that the legacy House of Caron is up for sale. It is important to remember that the owners, The Ales Groupe are a fairly sizable corporation and not an independent perfumery; to their credit they have owned Caron since 1998. Over the past decade, more and more independent perfumery brands are being acquired or have sold a piece of their company to large conglomerates, such as Estee Lauder, LVMH, Coty, LOreal and PUIG. In some respects this has broadened their distribution to a wider audience. In some cases the former owners have creative control. I couldn’t help but think of the “corporatization” of the music industry in the 1980s, when indie record companies such as A & M and Island Records were sold for nearly a billion dollars and lawyers and accountants not creatives were in charge. I approached the owners and founders of seven independent perfumery brands  (in order of their response to me) with the question, “how does independent perfumery survive  and thrive in an increasingly cluttered and consolidated marketplace?"–Michelyn Camen, Editor-In-Chief (with contributions from Hernando whose music insights were invaluable).

Neela Vermeire of Neela Vermeire Creations

"The challenge of independent perfumery is how to grow and remain relevant in a fragmented, fickle and fast moving market. That always translates into a need for capital and continuous reinvestment (also in marketing).  Not easy at all when you finance it all yourself, so sometimes that could mean some brands have been positioning by opening stores and looking for a large industry player to back the vision and take it to the next level – and that is what may happen still with Caron. Having such large industry players back “niche” is not easy all the time nor is it a guarantee for success. There can soon be a strained relationship between founder, who possibly did everything previously, and investor, who has whole dedicated departments doing each part (create, evaluate, develop, package, etc…). For the examples you mention, we have witnessed how some of the brands have actually been managed since the takeover period. Some of the new owners have taken very good care of the brands and have promoted them better (as they should have been) and other owners have sadly not been meticulous in promoting the original vision…".-Neela Vermeire, Founder and Creator of Neela Vermeire Creations (France)

Linda Jayne Pilkington, Founder of Ormonde Jayne

"As a creative and business woman, I have to work with a balanced mind and rather not set anything in stone, preferring to be flexible and able to change my business plan quickly, if circumstances demand it. For example the costs of goods suddenly going up, but you can’t increase the price of the perfume, the rate of exchange after the announcement of Brexit, increasing costs up to 20% over night etc. Business decisions have to be thought through and made swiftly. Market shares, cash flow, are all the daily aspects I have to think about. Having created and run Ormonde Jayne for 18 years, you can imagine I have been through a lot of good and bad times. Occasionally I have not paid myself for a few years, to keep the business growing. Other times I have been able to take money out of the company. My philosophy in life, not just in business is to listen to what people have to say, good or bad. Information, knowledge is power and priceless". –Linda Jayne, Creator & Founder Ormonde Jayne (Great Britian)

Nick Steward, Founder of Gallivant  (and former Creative Director for L’Artisan Parfumeur)

"The dilemma independent perfumery faces now is how do we make a living. Especially when the genuinely small, truly artisan companies face brands which are marketed as "artisan" but come with all of the muscle and money of the big groups. Consumers want to buy from small, human companies, created and run by people who really care about what they're putting out into the world. But these true artistic brands find it hard to get stocked by big retailers and especially department stores, who say they want indie brands but make it hard for them to do business and survive. The retail model is stuck in the past and too many big retailers are risk averse, only wanting to deal with brands owned by big groups. If we're not careful words like indie and artisan are going to become as meaningless as "niche"  – expropriated by marketing people  and we'll end up with identikit perfume departments all over the world with the same brands everywhere. Which will be boring and sad.  I'd love to find a way for independent brands to collaborate so that we can survive and thrive."-Nick Steward, Creator and Founder of Gallivant (Great Britian)

Luc Gabriel of The Different Co.

"On the matter I think that you have 2 types of investors. Long term minority share holders can help develop the business, but these are rare cases. Mostly if you sell the majority of your company it’s to make money and no other reason.  What happens next is always the same old story. The buyer wants to develop the business to get his money back, more fragrances, less creativity since you need to sell more, more stores, more flankers and the whole concept of niche goes down the drain. There is a clear example of that (I will not name the company) of a respected house that has been sold to a group a few years back. They used to launch one fragrance a year on average in a limited number of doors and all of a sudden, they’ve launched 3 fragrances last year, and drastically expanded the presence of the brand in Russia and other countries". –Luc Gabriel, CEO of The Different Co. (France)

David Seth Moltz of D.S. & Durga

"Like anything else, you can get caught up worrying about the future or lost in comparing your work to others. But that way of thinking is stifling.  I try to focus on the present and make what I am interested in most. I think about novel concepts, translating worlds from books, music, imagination, history, and travel. I think about the customer. At the end of the day, perfumers are trying to add a little joy into the world.  It's very important to me to only put out what I believe to be an authentic representation of the idea I am going for (Burning Barbershop needs to smell like a burnt down barbershop). I think my perspective on perfume is unique and deeply personal. If you focus on that and keep out the noise, the work blossoms.  I am aware that in order to reach larger audiences, the company needs to grow. As the company grows, the risks become higher and you need help from experienced people and companies that have scaled smaller businesses. It is natural.  I don't fear that – managing sales, distribution, storage, regulation, customer service, etc is no joke.  I have seen some acquisitions ruin the creative juice of the brand.  But I think our model would translate well to scaling – as I am the perfumer and Kavi is the designer. We don't need to outsource the core creative processes that make our product.  If we did, I could envision the message being lost. My idea of what a specific object smells like in a specific room in a certain place at a certain time doesn't need to be explained to another person – I can conjure it myself – this process is hard to mess us with no middle man. The Bhagavad Gita says you can't be tied to the fruits of your actions. You make your best attempts to create good things, but how they will resonate is beyond your control. You can't worry that the big guys will squash you – the cream rises to the top".-David Seth Moltz, Co-Founder and Perfumer for D.S. & Durga (USA)

Dom De Vetta of Shay and Blue (formerly a top executive for CHANEL and Jo Malone)

"Things have changed a lot in the last ten, fifteen years. People today are looking for authentic indie companies for their drinks, their food, their perfume. The internet has helped this. As an independent perfumery, we at Shay & Blue are trying to flourish without outside money. It is a balancing act, because you can just about do it if you are modestly successful and remain small. However there are two “extremes” as it were: if as an indie you become very popular there is no way you can afford to make all the inventory you need to feed demand, or, secondly, if you run out if steam and your product is not selling you will now need money to reboot. Personally for me, I would rather remain truly independent to keep our uniqueness and authenticity. But never say never, because if we find ourselves becoming much more popular, we might not have the luxury of remaining commanders of our own ship". –Dom De Vetta, Founder and Creator of Shay and Blue

Riccardo Tedeschi and Alessandro Brun of Masque Milano

"The rules of the game in independent perfumery and fine fragrances today are clear and quite ruthless: the winner takes it all. For instance, gaining a spot in the top locations requires too large an investment for a small brand to afford.  Being bought by a large group would allow formerly independent brands to exploit the so-called “parent advantage”, entering in top department stores and negotiating good conditions – yet it would mean losing independence and the true niche spirit. We at Masque Milano believe that there must be an alternative strategy, which includes finding new partners and leveraging on smart alliances. Just yesterday we officially announced a share capital increase. In the next few months, we will introduce a new formidable team encompassing a dozen young professionals, which will contribute with capital as well as their expertise, to make sure that Masque Milanocould rapidly move to another league. Another example of working smarter, not harder? At the coveted TFWA exhibition in Cannes, we have exhibited for three years in a private apartment, with 9 other brands. A stunning location in boulevard de la Croisette, which we couldn’t afford, didn’t we share costs with other brands. Furthermore the presence of 10 brands will make our exhibition attractive for several top buyers, so in this case the partnership also involves sharing contacts and supporting each other’s growth. Probably the above strategies are not enough for long term survival, yet now are mandatory to avoid extinction. In the future, one option might be that several niche brands be merging to institutionalize the above-mentioned partnerships. Stay tuned, as the only sure thing is that we will witness to many more transformations in this wonderful fragrance business." –Alessandro Brun and Riccardo Tedeschi, Founders of Masque Milano (Italy)

What do you think of our seven panelists in this "round table". Which quotes or Creative Directors' words resonated the most? How do you feel about the consolidation of independent perfumery?

Let's be reminded that the indpendents (their retailers and distributors) sponsor 99% of our perfume draws and giveaways…not large corporations.

 

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19 comments

  • Nir says:

    Phenomenal group of independent perfumers. The challenge of going up against big companies is steep. Nick Steward mentions the abuse of language, with “niche” getting exploited and now we see indie and artisan going the same direction. Thankfully we have the internet and people who support independent brands, a place to find their customers and grow, like what Dom De Vetta said. These are the exact kind of brands we focus on at Perfumology, and count on their creativity and thriving brand to build our perfumery.

  • DespinaVnt says:

    I read everybody’s views with great interest.
    I share Luc Gabriel’s concern about freedom of creativity being severely compromised after the former independent perfume owner sells the majority of his company’s shares; unfortunately, it has been confirmed in too many cases.
    I am in total agreement with the need of genuine, meaningful collaboration between independent perfume brands, as it was pointed out by Nick Steward, as well as by Alessandro Brun and Riccardo Tedeschi.

  • Roger Engelhardt says:

    I have read all the responses many times over. I do believe that “niche” is no longer relevant, since many have been bought out by large corporations. With that being said, was it a bad decision? Not for me to say. They did what they felt was necessary for the brands survival. Indie and artisan is where my heart has resided for the last 10 years, maybe more. The risks and the creativity that has come from them is, to me, both astounding and important to the fragrant community. If they could, and were receptive to the idea of forming a sort of union that would help all of them to flourish and reach out to all corners of the globe, then the big money machine of the corporates would have a formidable opponent.

  • Ann says:

    Thank you, Cafleurebon, for bringing this topic to your readers. Rarely do we have the opportunity to hear from the creators and owners of the smaller perfume lines, who put their hearts and souls into their companies. We consider ourselves very lucky to represent five of the seven lines at Indigo and admire their passion, creativity and determination.

  • Oreastina says:

    Thank you Cafleurebon for this great article and learning what these owners really feel about being an Indie fragrance company. Everyone had a great take (Dom De Vettawas with Chanel? Wow). I loved David Seth Moltz’s quote “At the end of the day perfumers are trying to bring joy to the world” . I don’t think that’s what those clone commercial fragrances have in mind”. I also liked the mix of countries and thank the Masque Milano owners for their idea of collaboration. That would be ideal

  • fazalcheema says:

    Its ruthless like it is in other industries. There are both pros and cons. The pros are that bad brands get phased out. The cons is that success creates a strong temptation to sell your business to the highest bidder so usually most niche brands do their best work in early years and start coming with safer compositions in the latter years.

  • Mr_Sillage says:

    In all honesty, I’ve only just discovered Indie and Artisan houses for a little over a year and a half ago. Man, what a nose dive I’ve taken, though. I’ve found such amazingly stunning fragrances. Ones that transport you to a place, or an idea. Ones that are stories in a bottle or ones that are inspired by animals…
    The uniqueness that these sort of houses bring and the heart that they each put into their fragrances are what mage them spectacular. I would love to see each and all of these brands become prosperous. As long as they can manage to truly keep the heat of the fragrances and artistic direction in mind. One thing that stuck out as I was reading was said by Nick Steward, a man I had the pleasure of meeting and learning a lot from. He said something along the lines of indie houses collaborating. I was actually thinking something along the same lines. It would be spectacular to see inie/artisan houses unite more as a whole to. I also see my friend, Nir , commenting at the top as well. It is because of access to his store that I am able to experience more houses like these and, as long as I can, not that my voice has any weight whatsoever, but… I will ALWAYS sing my pairs for the indie fragrances that I enjoy.
    AMAZING ARTICLE!

  • Robert H. says:

    Wonderful insights from these very well regarded and respected perfumers and creative directors. Having witnessed the takeover and makeover of certain niche brands in the past five years, it has been interesting to see some of the failures and successes but I feel confident in the future of independant with these 7 fine examples of cultural creatives. As David Seth Molz stated, the cream always rises to the top.

  • Old Herbaceous says:

    Fascinating to read these gifted creators’ thoughts! It does seem as if the independent brands would benefit from having their own trade association, if they don’t already, or some kind of collective that would allow them access to resources with more leverage in the marketplace (like the shared display location described in the article). Maybe that could even push back against some of the IFRA restrictions we love to hate!

  • Ermano says:

    How nice to read those deeply surgical, honest and soulful visions. I was lucky enough to talk about this topic of some of them face to face and this post touches me particularly. All the players are part of the game and we as writers, but also as retailers or consumers should act responsibly with our choices. When we buy an indie perfume, we hold in our hand more than fragrant juice in a box. Last word to these amazing people is as many of you highlighted, being independend is tough but it also has pros to leverage on. You’re the best asset of your brand, go go go!

  • SandiL says:

    First of all I want to say Thank you CaFleureBon for this thought provoking idea for this article, secondly Thanks to those Independent perfumers for sharing their thoughts and beliefs on this subject. We appreciate the time that you took out of your busy lives to respond from your hearts and experience. Having been a small business owner myself (not in the perfume industry) for many years, I know first hand the hardships, sacrifices, disappointments, as well as the good times. The challenges of price increases overnight can be crushing, not to mention the loop holes to get into retail space. Each one shared profound responses to this question.

  • SandiL says:

    I for one support the Independent perfumers solely, maybe because I realize the efforts and passion as to why they do what they do. I also have noticed that they are the generous ones that contribute to the draws that everyone enjoys here on CaFleureBon! Thank You for your generous spirits!

  • Chayaruchama says:

    I’m grateful to each of the participants for their candor.
    This topic has been timely and under scrutiny for awhile now, as it needs to be.

    I echo Sandi’s sentiments: I prefer to support independent artists, craftsmen, artisans rather than large corporations.

  • Smelling Great says:

    What an excellent read, lovely article. Love Indie perfumes. In fact, I just launched a video focused on indie perfumery. Unfortunately, I didn’t feature these indies mentioned in this article but I do love each and every one of the brands and their releases. I agree re niche and how is niche really niche anymore? I believe indie is the new niche.

  • Annatar says:

    Thank you for this insight into the industry, it’s great to read some honest thoughts. I can’t imagine how much struggle the indie and artisan perfume brands are facing nowadays, yet they keep going and making outstanding perfumes year after year. I want to believe, like David Seth Moltz, that cream rises to the top and independent companies with a distinctive voice survive all the crises.

  • Catanosmia says:

    This was a great read–thanks for article! I particularly appreciated what Nick Steward of Gallivant and the founders of Masque Milano had to say. I feel for the artists and the tough decisions they have to make regarding their companies. I hope that they can find ways to support each other so that they can stay true to themselves and also grow!

  • Aaron Potterman says:

    What a fantastic read! I completely relate with Neela, Dom, and Linda on only using ones own finances and all the ups and downs of doing so. Nick’s soooooo very spot on with his statement. Dom is absolutely right. I am with David in the art aspect (and most everything). Luc’s statement made me smile and nod thinking, TRUTH! The Masque fellows and Nick’s suggestion of pooling/collaborating is a great idea that I think would work well for some.

    While I do love the big players in many ways, I am still always drawn to the ones pushing limits and basically giving the middle finger to what they are “supposed to be” and just being…without a behemoth backing them.

  • Danu Seith-Fyr says:

    I read this insightful report with great interest as there is relation to many creative pursuits including wine of course.. I agree with lots of the points raised, by the eminent Perfumers and commentators. A double edged sword that always confronts those who translate their passions to product, wishing its success to travel to the world outside and be appreciated. However the business aspect looms of course as Linda states, I do believe that as creative people we must find ways to create alternatives to the trend of business models. On my little Island, the small boutique vineyards support and protect one another from outside interventions by an umbrella association. Staying true to the ethos which started the project in the first place. There is also an underlying issue here of what is perceived as important in this time, in the vast majority of instances in the past, creatives were supported by patrons, (equivalent of big business , perhaps), yet often not dictated to as how they produced their work, being facilitated without interference as they were appreciated for their talents.. in this Age it seems rare to find big business, if investing, in a hands off role. I dislike the loss of something not easy to define when products take on a mass market appeal or are pushed into the main stream on mass…. there is loss of Soul…. which is in fact what defines genius. I am not a Perfume House owner or Director so can only speak as I feel, but in this as in many things I fear the loss of something precious and priceless. I applaud all of the persons who contributed to this article, they are Beacons. They have and continue to create new models of business that include a marriage of Soul and Success.

  • Max Forti says:

    This was a great read on a very interesting topic. Today’s fragrance market direction, trends and how to stay relevant and grow in today’s fast-paced and extremely competitive ”niche” segment is a often times a double edged sword. It was very insightful to read the opinions of highly seasoned and select group of individuals. Thank you for sharing Çafleurebon.