Celebrities - Perfume And Fragrance Launches
With celebrity fragrances, the company manages the whole process from creation to bring the scent to market. The celebrities’ promised involvement in the design process is essential, this is, the celebrity's personality and preferences must be reflected on the product.
THE RISK(S) CELEBRITIES HAVE TO TAKE:
- One risk involved is: When a celebrity launches too many brands under his/her name, it leads to grooming, a lack of loyalty. As a result, buyers will lose interest in celebrity endorsements.
- This is, "the celebrity fragrance category or a particular celebrity ceases to be appealing to consumers or a celebrity’s reputation is adversely affected, sales of the related products and the value of the brands can decrease materially".
THE PROMISES THE CELEBRITY HAVE TO TAKE:
- During the launch of his perfume line "Someday", Justin Berber announced that a portion of the proceeds would go to support the Make-a-Wish Foundation and Pencils of Promise, two of his favorite charities.
- This made people feel more at ease with spending their hard-earned money on his product.
- Celebrities have to own the fragrance brand to make it as a licensed icon.
- The celebrity is usually involved in the fragrance designing process.
- This is because, the celebrity's personality and preferences must be reflected on the product, hence, the designers take this into account when making the fragrance/perfume.
WHAT IS ASSUMED BY THE PERFUME HOUSE:
- The fragrance company manages the whole creation/production process of the fragrance and bringing it to market.
- Companies that license stars' names also have a little control over their image and career paths, which can be a big business risk.
- COTY has told investors it can't guarantee that celebrity "licensors" will maintain their status with consumers, this could hurt the company's sales.
- Many times, the celebrity licenses their name to licensor like COTY with a certain fee. When a celebrity takes a license with COTY, it takes on all the risk (and rewards) related to the product.
WHO DISTRIBUTES, MARKETS, AND ADVERTISE THE PRODUCT?
- When it comes to licensing deals, celebrities do not have a lot of responsibilities. However, the manufacturers of the fragrance still pay them, in terms of royalties.
- Some responsibilities of the celebrity include advertising, taking photos/videos with the product, among other responsibilities.
- Celebrity's manager, staff, lawyers, or a record label, this is, "support team" do most of the groundwork.
- It is always important for a product to reflect a celebrity, and to achieve this, the support team of the celebrity work with him/her to make the product successful on the market, hence, generating sales.
- COTY commissions most of the celebrity fragrances. It (COTY) also serves as a distribution company.
- COTY, majorly creates, markets, and distributes the fragrance through various retailers.
- When a celebrity licenses his/her name to a fragrance, he/she is paid $3 million + as an upfront payment. Also, he/she gets between 5 and 10 percent of the total sales of the fragrance.
- A bottle of perfume usually retail between $60 and $100, but the cost of production is usually about 25% of the retail price.
We could find all the information pre-compiled the public domain, however, we could not find the information on the money invested by the celebrities while launching their own perfume and fragrance brand(s). We used the following strategies trying to find this missing information.
To find out the investments made by the celebrities launching their own perfume and fragrance brands, we first checked information portals like Harpar Bazaar, Dazed Digital, Vogue, Glamour Magazine, Cosmopolitan, Elle, among others since these sources have maximum information on the fashion industry with the focus on celebrity fragrances. However, the information found here was general including the best celebrity fragrances across the globe, some cover stories, among other irrelevant information which do not answer the research criteria.
Next, we checked for information on companies websites like COTY, Elizabeth Arden, Approach entertainment, Big Noise, among others which are well-known to work with A-List celebrities launching their line of perfume and fragrances and other cosmetic brands. Here, we wanted to check if the companies have ever shared any success stories about their work with some celebrities worldwide and if they have mentioned anything on the investments done from the celebrities end. However, the information found was mostly on the celebrities they have worked with.
Further, we looked into the popular investments made by the celebrities to find if any investments are related to any perfume and fragrance launch or any other cosmetic launch. We looked into sources like Insider, Money, Market Watch, Love Money, Tomorrow Makers, Forbes, among others where the investments made by some known celebrities like David Beckham, 50 Cents, Ashton Kutcher, George Clooney, Jay-Z, Beyonce, Jackie Chan, and other famous personalities across the globe were mentioned. Unfortunately, we could not find any investment amount relating to the launching of the perfume and fragrance or any other cosmetic brand(s) by any celebrity.
Lastly, we searched through the reports from Bain, Mckinsey, Globe News Wire, PR News Wire, among others where we found reports which mostly covered the fragrance industry overall. However, the reports had very less mention on celebrity fragrance. Also, we noted that no paywalled report may have this information. We also looked into case studies from sources like lvmh, Slide Share, Research Gate, among others where we did find some relevant case studies but mostly covered the part of how the agencies help celebrities during the whole phase of perfume and fragrance launches. Some celebs covered were Jennifer Lopez, David Beckham, among others, but these studies had no info on the investments made b these celebrities.