BEAUTY AND FRAGRANCE
Byline: Julie Naughton
As this year’s beauty entries to WWD’s Luxury survey demonstrate, building a successful luxury brand is less about quirky ingredients than it is about the value of a name, consistency, quality and customer service.
When consumers were asked to identify the top luxury brands, they didn’t select the newest or the trendiest product on the market; they named brands like Chanel, Giorgio Armani and Christian Dior (numbers one, two and three, respectively) — all brands that have delivered year after year and have continually introduced new and innovative products. In fact, when Armani finally unleashes his first color cosmetics line — now out in Europe — in the U.S., chances are that the same audience buying his fragrances and clothing will also give the makeup a try.
While beauty is facing the same uncertain times that the rest of the U.S. industry is, there’s one strong point in beauty’s favor: It tends to be recession-proof. As numerous market analysts have recently told WWD, even if a woman trades down to less-expensive clothing, once she’s hooked on the $20 lipstick, she generally is loyal to it.
And once a strong luxury brand image has been built, it tends to be forgiving. Several companies on the list — such as ninth-ranked Borghese and number 10 Elizabeth Arden — have hit rocky times over the last few years, with Borghese undergoing a complete restructuring over the last two years, and Arden being sold to FFI Fragrances late last year.
Despite the turmoil, their perception among consumers remains at the high end of the luxury spectrum.
While many of this year’s names are no surprise, one standout is beauty retailer Sephora. Although the store carries many high-end brands, the house brand has much lower price points and is intended for mass appeal. Still, the Sephora name ranks 32nd, far ahead of its higher-ticket counterparts, like number 34 Creed’s $100-plus fragrances and number 36 By Terry from Terry de Gunzberg’s $150-and-up cosmetics.
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The Rankings
1 Chanel
2 Giorgio Armani
3 Christian Dior
4 Gucci
5 Estee Lauder
6 Givenchy
7 Lancome
8 Yves Saint Laurent
9 Borghese
10 Elizabeth Arden
11 Guerlain
12 Annick Goutal
13 Frederic Fekkai
14 Ralph Lauren
15 Prada
16 Calvin Klein
17 La Prairie
18 Boucheron
19 Creme de La Mer
20 Donna Karan
21 Shiseido
22 Helmut Lang
23 Aramis
24 Tommy Hilfiger
25 MAC
26 Laura Mercier
27 Prescriptives
28 Bobbi Brown
29 Michael Kors
30 Nars
31 Clarins
32 Sephora
33 Trish McEvoy
34 Creed
35 Origins
36 By Terry from Terry de Gunzberg
37 Sisley
38 Stila
39 Philosophy