Among all five of our senses, the remarkable capabilities of our sense of smell are often overlooked and undervalued. Many renowned thinkers have historically dismissed the importance of olfaction, considering it an evolutionary relic—a skill essential for animals but seemingly unnecessary for humans. This perception has persisted through the ages.
The influential naturalist Charles Darwin believed that the human sense of smell was merely vestigial, while the esteemed German philosopher Immanuel Kant characterized it as the “most dispensable” of the senses. Even the great Aristotle dismissed humanity’s olfactory talents, bluntly stating: “man smells poorly.”
However, recent scientific research has begun to unveil the true sophistication and complexity of our olfactory abilities. Through various studies, scientists have shed light on how our sense of smell plays a pivotal role in our daily lives and experiences.
In 2017, neuroscientist Dr. John McGann published a groundbreaking paper in Science that challenged the long-held belief that humans possess a weak sense of smell. McGann highlighted the astonishing fact that humans can differentiate a vast array of odors, suggesting that our olfactory sense is comparable to that of other mammals.
The significance of our sense of smell surged into public consciousness during the COVID-19 pandemic, as it became recognized that a loss of smell could be a telling symptom of infection. This newfound awareness sparked greater interest in understanding olfaction.
A study published by the British Medical Journal revealed alarming findings from researchers in Singapore, the UK, and the US, indicating that approximately 5% of the global population may experience prolonged issues with their sense of smell or taste following a COVID-19 infection. This marked a turning point in how we perceive olfactory health.
On the American Psychological Association’s Speaking of Psychology podcast, Dr. Pamela Dalton, an experimental psychologist at the Monell Chemical Senses Centre in Philadelphia, poignantly described the experience of losing one’s sense of smell, or anosmia, as “turning a light switch off.” This metaphor highlights the profound impact that olfaction has on our perception of reality.
“It’s fascinating because people often don’t realize how much their sense of smell informs their understanding of time, space, and environment until it’s gone. Our sense of smell forms a backdrop to our daily experiences and interactions, woven into the very fabric of our lives, and it is only after it is taken away that we truly appreciate its value,” Dalton explained.
This rejuvenated interest in our olfactory abilities serves to reinforce the old adage: you never truly value something until it is lost.
In the beauty and personal care industry, this renewed focus on fragrance was evident in the meteoric rise of fine fragrances, particularly within the Asian market.
In 2021, L’Oréal, a global beauty giant, witnessed its luxury division rebound to near pre-COVID levels, attributing this recovery partly to the robust performance of fragrances, especially in China, where consumer interest soared.
“Historically, fragrance was a minor category in China, representing less than 5% of the luxury market. Recently, however, fragrance’s share has surged, nearing 10% by year’s end, as a new generation of Chinese consumers discovers and embraces the art of scent,” stated Cyril Chapuy, president of L’Oréal Luxe, during the firm’s annual results conference in February 2022.
Similarly, the esteemed French brand L’Occitane reported a remarkable 23% increase in sales in China during the first half of the 2022 fiscal year, driven by successful product launches, including its Osmanthus fragrance. According to the company, this fragrance accounted for 10% of total sales during its initial launch phase, indicating strong consumer demand.
This fragrance renaissance isn’t confined to China alone; we are witnessing similar trends across the globe. Coty, an American beauty multinational famous for its blockbuster fragrance brands like Chloé and Hugo Boss, has identified Southeast Asia as a critical market for its fragrance offerings.
Even niche fragrance brands are thriving in Asia, each carving out its unique identity and voice. Notable names include Gabar, Maison Dixsept, Maison de L’Asie, and Siam 1928, all contributing to the vibrant fragrance landscape.
The booming perfume industry in Asia can be attributed to a renewed appreciation for fragrances, not merely as luxury items but as essential components of personal wellness and self-expression.
Understanding the New Fragrance Consumer: Insights on Buying Behaviors
Over the past decade, the way consumers in Asia approach perfume purchasing has transformed significantly. Traditionally, individuals bought perfumes primarily for brand prestige and status, often reserving them for special occasions or giving them as gifts.
Asia has historically posed a challenge for many fragrance brands, including storied houses like Molinard, which has been crafting perfumes since 1849 and is one of the oldest family-run businesses in the industry. Despite its rich heritage, the company struggled to establish a foothold in Japan during the 2010s due to cultural preferences for lighter, more ‘polite’ scents.
Fast forward a decade, and the fragrance consumer has developed a refined understanding and appreciation for the art of perfumery. Joyce Lian, founder of the niche brand Scent Journer based in Singapore, has observed that her consumers are notably knowledgeable about fine fragrances.
She recounted her surprise during recent consumer research, discovering that her clientele gravitates towards niche brands like Diptyque, Le Labo, and Penhaligon’s. These consumers not only value the quality of the scents but also appreciate the stories and artistry behind each fragrance.
The exposure to these niche brands has honed consumers’ olfactory preferences, making them more receptive to exploring unconventional scent profiles. This evolving market dynamic is compelling Scent Journer to innovate and create more sophisticated and unique fragrance offerings.
“Our current fragrance collection leans towards floral notes, but next year, we’re excited to introduce more woody and fresh scents. While floral and fruity fragrances have historically dominated, we’re observing a shift in consumer preferences towards richer, earthier notes,” expressed Lian.
She emphasized that this new wave of fragrance enthusiasts challenges brands to maintain originality while staying in tune with market trends.
The growing interest in fragrances isn’t confined to the high-end market; it also extends to masstige beauty brands in Thailand, such as Cathy Doll and Mistine, which have recently launched their own fragrance lines. For Cathy Doll, entering the fragrance category represented an opportunity for premiumization.
“For over ten years, we’ve focused on competitive pricing. Now, it’s time to elevate our offerings and introduce more upscale products to enhance our brand equity,” stated Kat Wei, regional director of business development.
When Cathy Doll debuted its fragrance line, which includes a variety of eau de parfum and scented body lotions, Wei noted that retail partners were surprisingly enthusiastic about the higher price point.
“Given that Thailand’s average GDP per capita is lower than that of countries like China, expensive products typically face resistance from beauty retailers. However, this time, many expressed keen interest,” she said.
Cathy Doll’s inaugural fragrance collection has certainly garnered attention, especially with the endorsement of Thai actor and model Gulf Kanawut as the brand ambassador. Nevertheless, Wei acknowledges that the brand is still navigating this new category.
“There’s plenty of room for improvement. One challenge we face is the price point, so we plan to launch smaller volume bottles to encourage trial and broaden our consumer base,” she added.
Exploring the Emotional Connection: The Profound Impact of Fragrances
As we emerge from the challenges of the pandemic, we are increasingly aware of the intricate relationship between scent, emotion, and overall well-being. This understanding marks one of the most significant shifts that Jason Lee, founder of Scent by SIX, has observed in the market.
“Historically, fragrances were viewed primarily through an aesthetic lens. However, the pandemic, with its lockdowns and the physical separation from loved ones, has led people to become more conscious of the tangible benefits that scents can offer. I’ve noticed a substantial shift in how fragrances are perceived; people now pay closer attention to the emotional and environmental impacts of scent,” he remarked.
Scent by SIX debuted with a line of perfumes inspired by Lee’s global travels, heavily emphasizing storytelling. The COVID-19 outbreak prompted a pivot in the brand’s mission towards promoting mental health through fragrance.
In 2020, SIX collaborated with the Singapore Association of Mental Health (SAMH) to launch Hikaru, a yuzu-themed scent collection designed to uplift spirits and evoke happiness, utilizing technology from Japanese flavors and fragrances producer Takasago.
This initiative has since expanded with two additional collections—Sleep Returns and Care—the latter co-developed with the Caregivers Alliance Limited (CAL).
The positive feedback for these collections has been encouraging for the brand. Lee previously shared that the sales of the Hikaru collection are now rivaling those of its flagship scent, 27F Biei. More importantly, customers have shown a tendency to repurchase these mood-enhancing fragrances.
“This direction aligns with our goal at Scent by SIX—to channel our product offerings and communications towards providing genuine benefits for our users and beyond,” Lee stated.
The success experienced by SIX underscores the growing importance of the functional aspects of fragrances as we move forward.
Scent Journer, for example, crafts its perfumes with the intention of delivering benefits beyond mere fragrance. Its Dancing Blue Bees perfume is designed to aid users in relaxation and focus. “With the advancements in technology and research surrounding fragrance, particularly in neuroscience, I recognized an opportunity to introduce something innovative to the market,” Lian explained.
As research into the benefits of fragrances continues to expand, we can anticipate that the focus on olfactory experiences will extend into other beauty categories, including skincare.
In November 2022, Quintis, an Australian sandalwood producer, launched its first skincare brand, About Time We Met, featuring Indian Sandalwood oil as the main ingredient.
Research conducted by the company indicates that Indian sandalwood not only provides a calming effect but also possesses active properties that can help diminish visible signs of aging and protect the skin from pollution and blue light exposure.
“The significance of fragrance extends beyond personal scent. The potential for fragrances to produce tangible effects, beyond just smelling delightful, is gaining traction,” stated Vanessa Ligovich, chief marketing officer at Quintis Sandalwood.
Fragrance as a Mode of Personal Expression: The Evolving Landscape
In November, L’Oréal organized a roundtable to explore the major trends it has identified in China, Japan, and South Korea, and how these will shape the broader beauty market. One prominent trend that emerged was the theme of self-expression.
“The rise of self-expression in beauty can be attributed to the growing influence of fashion, the emergence of artists, and entrepreneurial creativity. This phenomenon is particularly evident within the Korean ecosystem, although we’re seeing similar trends in China,” noted Maxime De Boni, vice president of L’Oréal R&I for North Asia and China.
Fragrance serves as an exceptional medium for self-expression. For many consumers, scents are increasingly becoming a “signature of their personality.” This sentiment was echoed by Kristina Strunz, vice president of sales for Coty SEA.
“This desire for individuality has contributed to the rising popularity of niche fragrances. Consumers want to stand out; they seek unique scents that reflect their distinct identities, not those that are commonly worn,” she stated.
Johanna Monange, founder and CEO of bespoke perfume house Maison 21G, also observes a growing desire for self-expression among consumers.
“I sense that people are eager to express their true selves, particularly following the COVID-19 pandemic, when we all felt a loss of freedom. The younger generation, in particular, is keen to embrace authenticity and individuality. This trend towards self-expression will undoubtedly become more pronounced,” she remarked.
This quest for personal expression will further drive the demand for customization in fragrance. Monange believes consumers are now more willing to engage creatively and explore personal fragrance options.
“Initially, many were hesitant about the bespoke concept from Maison 21G. But as time has passed, I’ve witnessed a surge in interest and participation in our workshops, where people are excited to create their own fragrances,” she shared.
The Digital Evolution of Fragrance: Embracing E-commerce and New Frontiers
One of the significant challenges in the digital era has been how fragrance brands can effectively engage consumers and facilitate online purchases. To address this, brands have developed discovery sets, scent cards, and sample vials. Yet, it took a global pandemic to catalyze a significant shift towards online shopping.
“The pivotal turning point was COVID-19. Before the pandemic, consumers were reluctant to shop for fragrances online, as there was a prevailing notion that you needed to smell a fragrance before purchasing it,” Strunz explained.
However, as consumers adapted to the convenience of online shopping for all their needs, fragrance brands experienced a surge in online sales.
“During the pandemic, many began purchasing discovery sets online, leading to a gradual familiarity with different scents, which in turn prompted repeat purchases through online channels,” she added.
As consumers became accustomed to buying fragrances online, a ripple effect emerged in their behavior. Strunz elaborated, “People grew more aware of different fragrances and began experimenting with them. Their purchasing patterns started mirroring those seen in makeup and skincare—trialing products and making repeat purchases online in a natural progression.”
Explore More Insights from Coty in the Video Below
https://www.youtube.com/watch?v=4MyYkbzyUqg[/embed>
This year, Coty launched a Chloé LazMall flagship on Lazada, a leading e-commerce platform in Southeast Asia. This presented the company with a fresh challenge, as articulated by Strunz.
“When we launched Chloé on LazMall, we faced the question of how to convey the essence of a Chloé woman through fragrance. We needed to ensure that consumers, especially those new to Chloé, could grasp the feeling and experience associated with the fragrance,” she said.
This led to a successful TikTok campaign that utilized mood boards to illustrate the concept of the “Chloé woman.”
This digital transformation is merely a precursor to further innovations aimed at addressing evolving consumer behaviors, which may lead us toward the realms of Web 3.0 and the Metaverse—a thrilling prospect, according to Strunz.
“What excites me is the potential for technology and innovation to bring sensory experiences into the digital space. The advancements in technology, especially with 5G, are facilitating this shift,” she remarked.
The emergence of new digital frontiers and their possibilities present exciting opportunities for Coty. “As a fragrance-led powerhouse, we feel a sense of responsibility to lead in innovation and not lag behind,” Strunz emphasized.
It’s not just Coty preparing for a future in the Metaverse; founders of brands like Maison 21G, Scent by SIX, and Scent Journer are also contemplating their digital futures.
Maison 21G recently launched an exhibition titled A Polysensorial Reconnection, featuring collaborations with three artists from various disciplines to bring five specially crafted scents to life through visuals, movement, and music.
Monange explained that since scent is inherently challenging to articulate, she collaborated with diverse artists to engage all five senses, effectively communicating the narrative behind each fragrance. Moving forward, Maison 21G is exploring the potential of developing non-fungible tokens (NFTs) that will encapsulate their clients’ unique fragrance creations.
Lee speculates that advancements in technology could transform fragrances into interchangeable wearables, allowing consumers to access a “jukebox of fragrances.” He concluded that creativity will be the only limit for brands.
“The Metaverse will not replace our current reality, but it will undoubtedly serve as a significant complementary space. The possibilities for reimagining our surroundings are limitless,” Lee stated.
Conversely, Dan Terry, founder of Oo La Lab, which pioneered the craft-your-own fragrance experience in Singapore, expresses skepticism towards Web 3.0.
“To be blunt, I’m not interested in that aspect at all. I’m open to innovation—we’ve even developed a machine learning algorithm to assist customers in ingredient selection. While I find the underlying technology interesting, selling a digital token or an image seems overhyped. I believe the funds could be better allocated,” Terry remarked.
“While we explore how technology can enhance our offerings, I prefer to focus on more meaningful endeavors,” he added.
Terry emphasizes that he perceives fragrance as a means to foster a deeper connection between individuals and nature.
“What truly excites me is the renewed interest in natural ingredients and the sustainability of products. Consumers are increasingly attentive to these aspects, and I believe the veil has been lifted. Industries must go beyond mere labeling regarding practices, such as sourcing and working closely with farmers,” he asserted.
While some brands are investing in virtual realms, Terry hopes to invest in substantial physical spaces. His vision for Oo La Lab includes expanding into a larger venue with space for a garden, enhancing the experience for visitors.
“We prioritize immersive experiences for our patrons, emphasizing the importance of details. It’s exciting to showcase the journey of an ingredient—from plant to raw material to its final transformation into a fragrance,” he concluded. “I genuinely believe that the real world offers a far more engaging experience.”
As we look to the future, the fragrance industry’s engagement with Web 3.0 remains speculative. However, one thing is clear: brands must adapt to the increasingly sophisticated preferences of modern fragrance consumers and recognize that fragrance is evolving beyond its traditional roles as a luxury item or a means of attraction.
