ClickZ Fragrances Newsletter - 12.05.2024

Khloé Kardashian teams up with Luxe Brands on XO Khloé fragrance launch

Author

Zihan Lyu
December 05, 2024 • Estimated Reading Time: 6 minutes

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ClickZ Fragrances is your essential newsletter for fragrance e-commerce professionals. As the holiday season approaches, we're here to help your campaigns hit the mark.

Top Shelf 🛒

With BFCM wrapped up, marketers are shifting gears to plan for 2025. To help you start strong, here are three essential tips to set your brand up for growth:

1️⃣ Get the Right Measurement in Place: You can’t plan for next year without accurate measurement. Yet, many brands stick with the devil they know—Last Click— despite its fundamental flaws.

With BFCM in the bag, now’s the perfect time to adopt effective full-funnel measurement. Plus, Fospha delivers YoY metrics from the start, so you can dive into budget planning ASAP.

2️⃣ Consider Adjusting Your Channel Mix: What worked last year might not work now. Successful brands adapt by altering their channel mix and ad spend as they scale. We find that as brands mature, they have to focus on expanding their upper funnel spend to create more demand to capture.

3️⃣ Reflect on Peak Performance: Before diving into next year, take time to assess your BFCM performance. Benchmarking data is your compass and gives you data-backed edge for 2025 planning.

For free BFCM 2024 benchmarking data, sign up for priority access to our BFCM 2024 Report here.

From The Shop Floor

The singer’s beauty and lifestyle brand has unveiled two US-based festive pop-ups after the performative success of its previous experience-led activations. These activations showcase exclusive products while reinforcing direct consumer engagement. Marketers should note this integration of physical and digital experiences, offering insights into effective hybrid strategies that drive growth in the competitive fashion retail landscape.

Fragrance's surging demand offers strategic opportunities for marketers this holiday season. Engage younger consumers with innovative scent promotions, leveraging value sets and rewards. Focus on prestige outlets to enhance brand appeal. Adapt your approach to capitalize on this trend, while anticipating continued market growth and changing consumer sentiments.

Body care and premium deodorant brands are emerging as prime M&A targets, with L Catterton's recent acquisition of Stenders highlighting investor appetite in this space. Despite a generally cautious M&A market, premium multiples are being paid for promising body care brands, evidenced by deals like e.l.f. Beauty's $355m Naturium acquisition. This signals a shift in consumer behavior toward premium body care products and investors' confidence in the segment's continued growth through 2025.

Khloé Kardashian's XO Khloé fragrance, crafted with Luxe Brands, exemplifies strategic brand-building. With floral, rose, praline, musks, and woods in its profile, and high-profile launches at Harrods and Ulta Beauty, it offers key insights into effectively leveraging celebrity influence and cross-channel partnerships in retail marketing.

Unilever's $100 million investment in creating an in-house fragrance innovation hub offers insights into market trend responsiveness and brand differentiation. Leveraging AI and hybrid approaches, it aligns with its Growth Action Plan, presenting a model for strategic adaptation and marketing superiority.

The Golden Gobbler 🍗

Extended Black Friday and Cyber Monday sales challenge eCommerce marketers, requiring strategic creativity in promotions to maintain profitability, especially for smaller brands. Early sales from major retailers like Amazon emphasize the importance of proactive planning to stay competitive.

Strategically allocate 7-12% of revenue for e-commerce marketing; startups might invest 15-20% for initial growth. Focus on customer acquisition while prioritizing high-return channels and tracking ROI. Assess customer lifetime value for sustainable tactics. Challenge your eCommerce methods by embracing adaptability and regular evaluations to maximize long-term market gains.

BNPL is reshaping holiday marketing strategies by integrating 0% financing with promotions, appealing to budget-savvy shoppers. This strategic approach differentiates brands and offers a creative edge in managing consumer spending. Embrace these insights to enhance your strategic planning in the competitive eCommerce landscape, aligning with evolving consumer expectations.

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