Fragrance makers hook up with Hollywood stars
(AP)
Updated: 2004-07-02 11:33

The latest trend in fragrances isn't about seductive scents or eye-catching bottles. It's all about the Hollywood star connection.

Marketers trying to lift the fragrance industry out of a three-year slump are signing deals with celebrities, hoping to attract devoted fans who want to buy scents endorsed by Britney or Beyonce.

Elizabeth Arden Inc. signed an exclusive agreement with pop singer Britney Spears to develop and market a line of fragrances and cosmetics. Called Curious Britney Spears, the first fragrance will arrive in stores including Macy's and Nordstrom department stores in late September.

Singer Beyonce Knowles will be the spokeswoman for Tommy Hilfiger's new scent True Star, while actress Scarlett Johansson will appear in the ad campaign for Calvin Klein's Eternity Moment.

Avon Inc. has nabbed actress Salma Hayek for ads for its cosmetics and new upscale fragrance under three separate names _ Today, Tomorrow and Always. And Estee Lauder Inc. has chosen actress Ashley Judd to be its spokeswoman for American Beauty, the first of three skincare and cosmetics brands it's developing for Kohl's Corp.

Raul Martinez, chief executive and executive creative director of AR, a New York-based advertising agency said companies believe a "celebrity face will help."

"It will help bring recognition," to their products, he said. But he warned: "It could also backfire, if the celebrity isn't properly matched" with a fragrance.

Companies all hope to copy Coty Inc.'s successful partnership with Jennifer Lopez, whose fragrance Glow by JLO, unveiled in September 2002, was the ninth best-selling women's fragrance in department stores last year, according to market research firm NPD Beauty.

Glow was followed by Lopez's Still six months ago. The two brands have totaled $200 million in sales, exceeding expectations, according to Bernd Beetz, the CEO of Coty.

While Tommy Hilfiger, Calvin Klein and Avon are using celebrities as spokeswomen for their scents for the first time, Coty and Elizabeth Arden are among those developing celebrity brands, a riskier strategy. A hot celebrity could quickly turn cold, hurting sales of the product.

"Two years ago, celebrity fragrances did not work. (Lopez) broke the mold," said Beetz, whose company has since tapped Celine Dion in 2003 and teen actresses Mary-Kate and Ashley Olsen for namesake fragrances.

One of the few exceptions has been Elizabeth Taylor's White Diamonds, which has remained one of the most successful celebrity fragrances since its 1991 launch.

Beetz said that, in the past, companies just slapped a celebrity name on the scent, but success now lies in getting closer to the star, from the scent to the packaging. Coty is promoting Glow by offering scent strips with the singer's CDs. The curvy bottle represents her figure.

The fragrance industry is hoping to reverse annual 2 percent declines it has suffered since 2001, according to NPD Beauty. Last year, men's and women's fragrance sales at department stores totaled $2.8 billion.

Part of the industry's problem is an oversupply of brands.

"The number of new launches that has flooded the market in the last 10 years is four times that of prior years," said Timra Carlson, president of NPD Beauty.

Wendy Liebmann, president of WSL Strategic Retail, a consulting firm in New York, noted that the fragrance industry "is becoming like the fashion industry," with consumers wanting a new fragrance fix every season.

But even with the demand, marketing isn't a sure thing; companies hoping to lure customers in their 20s are finding that they need to try new strategies, such as a greater use of the Internet.

"The 16-24 demographic that comprises Britney Spears' fan base is far more elusive; they watch less than two hours a day of TV," said Ronald Rolleston, executive vice president of Elizabeth Arden. "To communicate with them, we've had to be very precise in our choice of vehicles."

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