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#2JourCaseStudy: How To Sell Luxury Perfumes Online. Examples, Insights, Gaps & Solutions.

Updated: Dec 5, 2024


INTRODUCTION


Luxury fashion brands are increasingly expanding into the perfume market and are dedicating more attention to this segment in their marketing activities. Expansion into perfumery is driven by several key factors:


  • Brand extension and loyalty

Perfumery allows brands to extend their portfolio and reinforce their identity, creating a holistic lifestyle offering that enhances customer loyalty and brand affinity


  • High margins and profitability

The relatively low production costs and high retail prices contribute to significant profitability, with recurring purchases ensuring a steady revenue stream


  • Market penetration and accessibility

Perfumes provide a more accessible entry point for customers who aspire to own luxury items but may not afford higher-priced fashion products. This accessibility helps increase market penetration and potentially converts aspirational customers into loyal clients.


This case study focuses on selling strategies of parfums with over average price tag, particularly in terms of sizing, and aims to:


  • Explore how luxury brands present perfume

  • Discover and compare the main market practices of selling perfumes

  • Provide recommendations on the presentation of perfumes in e-commerce


The case study would be especially beneficial and insightful for:


  • Luxury fashion and jewellery brands expanding into high-end perfumery

  • Brands focusing on high-end perfumery

  • E-commerce executives and beauty professionals operating in e-commerce

  • Marketing strategists


The case study includes analysis of strategies (with visuals) of the following brands:

  • Fashion & Jewelry: Cartier, Celine, Chanel, Dior, Fendi, Hermes, Louis Vuitton, Valentino

  • Pro: Main focus on perfumery: Byredo, Creed, Frederic Malle, Givenchy, Guerlain, Kilian, Le Labo, Maison Francis Kurkdijan


*The summary on each brand's policy is also included.


By analyzing examples from 16 prominent brands representing both luxury fashion and jewellery brands expanding into fragrances and brands focused on perfumery, the study offers valuable insights and actionable recommendations for enhancing perfume sales in the competitive luxury market, with a special emphasis on effective perfume formats.






Fashion & Jewelry

Pro: Main focus on perfumery


BACKGROUND


The idea for this research came after I made a purchase from the Dior Beauty online store. I bought a £33 lip gloss and had the opportunity to choose two perfume samples from La Collection Privée Christian Dior for free at checkout.


La Collection Privée Christian Dior is “a portfolio of refined fragrances reflecting the unique legacy of the founding couturier”. It is positioned as a premium and exclusive line of fragrances within the brand, which is also reflected in its price tag.


After calculating the operational costs for this order, I identified gaps and saw significant opportunities both for expanding market reach and growing sales while reducing operational costs. This is now reflected in this case study.


DISCOVERY AND SAMPLING: The Most Important Touchpoint To Sell A Perfume


In the world of perfumery, several key touchpoints influence a customer's purchasing decision. Key aspects include product discovery, shopping experiences, packaging, and post-purchase support. However, the most crucial touchpoint is the Discovery and Sampling stage, which encompasses Scent Evaluation.


The Discovery and Sampling stage is pivotal when choosing a perfume, as it allows customers to engage directly with the product. Within this stage, Scent Evaluation becomes a critical component, enabling customers to assess how the fragrance develops and interacts with their skin. This firsthand experience is essential for making an informed and satisfying purchase decision.


We believe fragrance is only truly discovered on your skin. It’s the chemical reaction with our natural pH balance that helps create the magic. - Creed

Perfume is a deeply personal product, and experiencing the scent firsthand is essential for making an informed purchase.


In Haute Parfumerie, the thoughtfully-built sampling experience is even more important, as customers tend to be more cautious before committing to a full-size purchase, which is significantly more expensive than the market average.

Let's explore strategies and individual approaches to selling haute perfumes to selling within the following brands:


3.1. Sample Policies and Approaches


By offering samples (which are usually up to 2 ml), brands provide customers with the opportunity to engage in essential Scent Evaluation over an extended period. This allows customers to experience how a fragrance develops on their skin over a few days, which is a significant advantage over in-boutique testing. Such an approach can effectively introduce perfumes, increase the likelihood of full-size sales, foster long-term relationships, and enhance overall customer satisfaction, while also generating additional revenue.


There are different approaches in the market to offering samples of Haute Parfumerie. Sample policies include offering complimentary samples, selling samples and discovery sets, and implementing try-it services with full-size bottle purchases.


1. Complimentary Samples


Some brands offer complimentary samples with purchases, either allowing customers to choose samples at checkout or including predetermined samples. However, the selection may be limited in some cases.


  • Creed, Byredo, Dior, Louis Vuitton, Maison Francis Kurkdjian: Provide complimentary samples with purchases. Customers can choose samples at checkout, though most often the choice is limited

  • Fendi: Provides complimentary fragrance samples with full-size bottle purchases without the option to choose the type of sample.


Providing complimentary samples with purchases is an effective strategy to engage clients and introduce them to the brand's perfumery. This approach builds interest and encourages customers to commit to future purchases. Complimentary samples, whether included automatically or chosen at checkout, allow customers to experience the brand’s offerings firsthand. This strategy enhances customer satisfaction, fosters brand loyalty, and increases the likelihood of converting first-time buyers into repeat customers.


Advantages:

  • Customer Engagement: Samples engage clients directly, allowing them to explore the brand's fragrances

  • Building Interest: Introducing customers to a variety of scents can pique their interest and lead to full-size purchases

  • Increased Loyalty: Positive initial experiences with samples can foster long-term brand loyalty


Disadvantages:

  • Operational Costs: Producing and distributing samples adds to costs

  • Logistics Challenges: Coordinating sample inclusion with orders complicates logistics

  • Limited Choices: A restricted variety of samples might not cater to all customer preferences, reducing satisfaction.


To manage these disadvantages, brands can consider:

  • Set a minimum order value for complimentary samples and limit their quantity. That may also lead to increasing order value (if these are not fashion brands which don't have wide range of beauty offerings - which means no comperetavely low-price offerings)

  • Offer additional samples for a fee and limit their quantity. This may be done via a checkout message or as a pop-up window when a customer adds something to their cart. Offering single samples for sale without a minimum order value may lead to higher operational expenses than the sample price itself, but if it comes with an order of a minimum value, the cost is reduced. While limiting quantities of additional samples helps manage costs, prevent abuse

  • Provide a broad range of samples to cater to diverse tastes, maximizing customer satisfaction and potential for full-size purchases


Technical implementation

  • Clearly communicate complimentary sample policies on item pages

  • Depending on brand time (fully focused on fragrances and beauty or fashion brand with perfume category) mention complimentary in website visual: on item pages, header line and at the checkout



  • If the samples are offered at the checkout they might be grouped by notes type, so the customer could easily choose the type according to prefences



  • If the brand has a fragrance they want to focus attention on (new-in, bestseller, etc.), this sample may be added to the bag automatically.


2. Try-It Service


Several brands offer a try-it service where customers receive a complimentary sample with their full-size bottle purchase. This allows customers to test the fragrance before opening the full-size bottle. If the sample is not satisfactory, the unopened full-size bottle can be returned for a refund.


  • Celine, Chanel, Dior, Givenchy, Guerlain



The try-it service, where a full-size bottle comes with a same-fragrance sample, provides a significant advantage in customer engagement. This risk-free trial enhances the shopping experience, and make customer feel safe when commiting to a full-size bottle.


If a person commits to a full-size bottle with a significant price tag, the advantages of such an approach eliminate any possible disadvantages. The customer may be additionally offered extra samples for a fee at checkout, with the same policies as mentioned before.


3. No Complimentary Samples

Several brands do not mention offering complimentary samples with purchases.

  • Cartier, Hermès, Valentino, Frederic Malle


While saving costs, such approach may miss opportunities to engage customers, specially with those who prefer trying products before committing to a purchase. Customers might be hesitant to buy full-size products without sampling, potentially leading to lower sales.


How To Enhance:

The brand may use other engagement policies to counterbalance, including personalised online consultations or offering samples for sale. While Cartier and Frederic malle offer complimentary samples the brands offer sample discovery sets. Frederic Malle gives an opportunity to customize the set and to redeem its value with full-size bottle purchase.



4. Samples for Sale (Including Discovery Sample Sets)

Many brands offer sample for sale, allowing customers to try multiple fragrances. While most brands offer sets of at least three samples, Le Labo is unique in offering single 1.5 ml samples for sale, featuring them both on full-size bottle product pages, and as a stand-alone offering.


  • Cartier, Celine, Byredo, Creed, Frederic Malle, Maison Francis Kurkdjian, Kilian, Le Labo




Specific redemption policies include:

  • Byredo: Value may be redeemed against any 50 ml or 100 ml fragrance purchase within 4 weeks

  • Creed: Value can be redeemed against a future full-price fragrance purchase within 30 days

  • Frederic Malle: Sample set purchase price deducted from next full-size purchase of £100 or more within 3 months

  • Kilian: Redeemable on your next order within 6 months


Selling discovery sample sets allows customers to explore fragrances, providing an in-depth experience of the brand's offerings. This method generates revenue and can lead to increased sales of full-size products, especially when the cost of the sample set is redeemable against future purchases.


Some brands offer both discovery sets for sale and extra complimentary samples at the checkout (usually up to 2).


How To Inhance

While some customers might view the need to pay for samples as a negative aspect compared to receiving them for free, the approach may still attract those who are not ready for a full-size bottle purchase. Depending on brand offerings (whether it is a brand with a strong beauty offering or has perfumery as an additional category within fashion), it is important to consider the following:


  • Provide the client with flexibility in making a sample set. Perfume is very individual, so pushing particular items in sample offerings may lead to customer dissatisfaction, which will not convert to a full-size bottle purchase;

  • Offer real luxury by paying attention to the packaging. Place samples in a nice box or consider individual packaging for samples inside the box;


  • Use engagement tactics by incorporating descriptions of each fragrance inside the sample box and adding a QR code leading to the product page. Make the QR code a contrasting color and accompany it with a call-to-action text—often customers may miss small details, so it's important to make it visible. The QR codes can also be added on paper cards or as stickers on individual packaging.


On the example shown there is a QR code with a link to official online store on Dior cosmetics. Because it is in the same color palette as the packaging it may be missed by the customer.


  • It may be also cobnsidered to provide both fixed-type sample sets with limited-edition or seasonal fragrances along with an options to make personalised sample box.

Technical implementation

If the brand has a value-redemption policy on sample value and depending on the redemption period, two automated notifications (emails) may be sent—one in the middle of the period and another a week or so before the end. This may encourage the customer to commit to a full-size bottle purchase.


5. No Samples for Sale


Certain brands do not offer any samples for sale.

  • Chanel, Dior, Fendi, Givenchy, Hermès, Valentino


Such approach reduces operational complexity and can enhance the brand's exclusive image, especially when it comes to brands mostly focused on fashion. However, this approach limits customer engagement and the ability to attract new buyers, so it has to be balanced along with other offerings.


Discovery & Travel-sized Perfume


Travel-sized and discovery set fragrances offer a compelling alternative to traditional full-size bottles and small samples, providing both practicality and versatility for consumers. Unlike the tiny sample vials, which typically contain no more than 2 ml of fragrance, discovery sizes are larger, offering a more generous amount of product that allows for a more thorough testing experience. Similarly, travel-sized bottles, typically ranging from 7.5 ml to 15 ml, cater to the needs of those who seek convenience and portability.


Both discovery sets and travel-sized fragrances enhance the customer experience by offering greater flexibility and convenience. They bridge the gap between small samples and full-sized bottles, providing a balance of value and usability that caters to diverse consumer needs.


The approaches brands used regarding discovery is usually determined by at least 3 items, which means sets are preferred over single item sellings.


Discovery sets are presented with the following approaches:


Fixed Option

  • Cartier, Fendi, Givenchy Guerlain, Frederic Malle, Kilian, Maison Francis Kurkdjian, Louis Vuitton, Celine



Advantages:

  • Curated Experience: carefully selected range of fragrances, offering customers a structured introduction to a brand’s offerings. This can highlight popular or signature scents and help in promoting specific products;

  • Simplicity for Customers: an easy purchasing decision without the need to select individual fragrances. This simplicity is appealing to those who prefer a straightforward, curated experience;

  • Consistent Brand Messaging: customers experience the brand’s intended fragrance selection, which can reinforce brand identity and messaging.


Disadvantages:

  • Limited Personalization: may not cater to individual customer preferences, potentially leading to dissatisfaction if the included fragrances do not align with their tastes;

  • Inventory and Stock Management: managing and stocking multiple fixed discovery sets can be challenging and costly.


How To Enhance:

  • Curated Themes: themed discovery sets (e.g., seasonal collections, mood-based selections) to provide a fresh and engaging experience. This can make fixed options more appealing and relevant to various occasions or preferences;

  • Limited Editions: offer limited-edition discovery sets to create a sense of exclusivity and urgency. These sets can feature rare or seasonal fragrances, encouraging customers to act quickly.


Customizable Options

  • Hermès, Byredo, Creed, Givenchy, Maison Francis Kurkdjian



Advantages:

  • Personalization and Flexibility: Customizable discovery sets allow customers to choose their preferred fragrances, providing a more tailored and satisfying shopping experience. This flexibility can lead to higher customer satisfaction and loyalty;

  • Enhanced Engagement: Customizable options can drive greater engagement, as customers are more likely to purchase when they can select specific fragrances that match their preferences;

  • Increased Sales Potential: By offering customizable sets, brands can potentially increase sales of full-size bottles, as customers who enjoy the samples are more likely to make a larger purchase.


Disadvantages:

  • Operational Complexity: Managing customizable sets involves more complex logistics and inventory control. Brands need to efficiently handle a variety of fragrances and ensure availability for customer selection;

  • Higher Costs: Customization can result in increased operational costs;

  • Decision Overload: Too many customization options can overwhelm customers, making the decision process more complicated. Brands should ensure that the selection process remains user-friendly.


How To Enhance

  • Intuitive Customization Tools: Implement user-friendly online tools that allow customers to easily create their own discovery sets. Interactive features, such as scent profiles or options grouped by scent family can streamline the selection process.


By mixing both approaches brands can cater customers with the most preferred way of purchasing decision.


Like discovery sets travel sets have similar presentation, except the experience is often further enhanced with travel cases.


To further enhance travel-sized offer brands may consider to:

  • design travel-sized products with practical and stylish packaging that includes features like secure caps, leak-proof designs, or compact cases;

  • provide mix-and-match options, which allows customers to mix and match different fragrances in travel-sized formats. This customization can appeal to those who want variety and personalization;

  • introduce seasonal or limited-time travel size options to keep the selection exciting and aligned with current trends or events;

  • provide with an option to buy single travel-sized perfume or along with a full-size bottle.



Enhancing Fragrance Purchases with Extra Services and Customizations


Brands offer various extra services and customizations to enhance the fragrance purchasing experience, catering to diverse customer preferences. These services can be grouped into several key categories:


Personalization

  • Dior, Louis Vuitton, Creed, GivenchyGuerlain, Le Labo, Maison Francis Kurkdjian


These brands offer personalization services, such as bottle engraving (Dior, Louis Vuitton, Creed, Givenchy), embossing for leather sleeves (Creed), and customized delivery boxes or travel tubes (Le Labo). Guerlain provides a broad range of bottle design personalization options, some free and some for an extra charge, while Maison Francis Kurkdjian offers personalized perfume bottles and travel holders for an additional fee.



How To enhance

To enhance personalization, brands could expand their customization options. Introducing more personalized elements, such as custom scent blends or bespoke fragrance consultations, could attract customers seeking a unique experience. Offering more extensive engraving options, including customizable packaging, could further enrich the customer experience. Additionally, integrating advanced technology for virtual engraving previews could enhance the appeal of personalization services.


Refill Services

  • Cartier, Louis Vuitton, Creed, Kilian, Le Labo


Several brands focus on sustainability and convenience through refill services. Cartier offers metal cases sold with refills. Louis Vuitton provides a refill service at in-store perfume fountains. Creed offers refillable travel atomizers, and Kilian has a comprehensive refill catalog for perfumes, travel sprays, and carafes. Le Labo’s refill program allows customers to send back empty bottles for refilling at a lower cost than purchasing new ones, available in the USA and UK.



How To Enhance

To improve refill services, brands can enhance convenience and sustainability by offering subscription-based refill programs, where customers receive regular refills at discounted rates. Expanding refill programs to include more geographical regions and providing refill kiosks at major retail locations can also increase accessibility. Implementing a reward system for customers who use refill services can encourage more eco-friendly practices and boost customer loyalty.


Travel and Storage Options

  • Celine, Dior, Fendi, Louis Vuitton, Valentino, Byredo, Creed, Frederic Malle, Le Labo, Maison Francis Kurkdjian


Travel and storage solutions are a common offering. Celine, Byredo, and Frederic Malle provide travel perfume holders. Dior offers leather-covered cases for travel-sized fragrances, while Fendi and Louis Vuitton provide luxurious travel bottle cases. Valentino and Creed offer single and multi-bottle perfume cases, with Creed also offering leather sleeves for travel samples and bottles. Le Labo provides a travel tube parfum case, and Maison Francis Kurkdjian offers travel holders with personalization options.



How To Enhance

Brands could enhance travel and storage options by offering customizable travel sets where customers can choose from a variety of case designs and sizes.


Exclusive and Limited-Edition Products

  • Cartier, Louis Vuitton, Guerlain, Dior


Some brands emphasize exclusivity through limited-edition and high-value items. Cartier offers limited edition parfums and web exclusives. Louis Vuitton’s exceptional pieces include one-liter Baccarat crystal bottles and exclusive parfum collections by architect Frank Gehry. Guerlain offers bespoke fragrances starting from a high price point, showcasing their dedication to creating unique, personalized experiences for their customers. Dior have reissued Tricolour Amphoras in 3 French flag colors crystal bottles which showcase 3 Dior fragrance bouquets  in a numbered and limited series.



How To Enhance

To heighten the appeal of exclusive and limited-edition products, brands could collaborate with renowned artists or designers to create unique, collectible packaging. Offering limited-time access to exclusive fragrances through loyalty programs or special events can create a sense of urgency and exclusivity. Brands can also enhance their storytelling around these exclusive products, sharing the inspiration and craftsmanship behind each creation to deepen customer connection.


Enhancing the customer experience through personalization, sustainability, convenience, and exclusivity may not only add value but also foster brand loyalty and elevate the perceived luxury of the products.


General Enhancements To Address General Gaps In Selling Perfumes Online


Improving the online shopping experience can help customers make more informed decisions. While checking the practices main gaps were detected, which may be solved in the following way:

  • Providing detailed descriptions and ingredient lists;

  • Mentioning all available volume options on the product page. While exploring different offerings, it appeared that while the perfume may be available in a range of volumes, this is often not mentioned on the product page. This includes samples, travel, and discovery sizes;

  • Mentioning same-fragrance items on the product page. This can be either a link to a specific collection or, depending on the quantity, a listing of all products available within the same fragrance;

  • Mentioning additional items that may accompany the product in product , such as travel cases or elevated versions;

  • Mention additional item features as "web exclusive", "limited edition", "new in", "exclusive" with a ribbon on product page both on collection and product page;

  • Work on well-structured menu. Apart from combined categories add to the list any particular collections you want customer to focus on. For better navigation anchor links and pictures may be integrated to re-direct customer to specific category. Do not forget filter and sort options on top of collection pages;


  • Add breadcrumbs both on collection and product pages - a navigational aid that helps users understand their current location within the site’s hierarchy and easily navigate back to previous pages

  • Providing detailed descriptions of policies. Many brands make learning about their special policies too complicated. If a try-it service is mentioned, there should be either accompanying text or a link straight to the details. Same comes to redeemable value of discovery sets, returns etc;

  • Incorporating customer reviews, as they play a pivotal role in decision-making in beauty shopping;

  • Encourage customer to subscribe to e-mail updates along with offering complimentary samples;

  • Ensuring mobile optimization. Make sure the website is fully optimized for mobile devices, as many customers shop on their phones.


***

CONCLUSION


Luxury perfumes have surged in popularity among brand offerings due to their ability to enhance brand identity, provide high profit margins, and cater to consumer desires for exclusivity and personalization. They are popular as gifts, align with cultural trends towards indulgence, and offer a profitable diversification for brands. Their emotional impact and unique sensory experience further solidify their desirability.


Continuously improving and offering a balanced approach to online selling is crucial for maintaining competitiveness and meeting evolving consumer expectations. Regular enhancements ensure a seamless shopping experience, foster customer satisfaction, and build loyalty. This not only attracts and retains customers but also adapts to market trends, drives sales, and strengthens the brand's reputation.


Individual Brand Policies

Cartier

Celine

Chanel

Dior

Fendi

Hermès

Louis Vuitton

Valentino

Byredo

Creed

Frederic Malle

Givenchy

Guerlain

Kilian

Le Labo

Maison Francis Kurkdjian



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