Why luxury scents are a game changer for the perfume wearer

Luxury perfumes have been a hot category in the world of cosmetics over the years, for it’s got merit for both brands and consumers

If Roja Parfums, Tom Ford, Amaffi, Viktor & Rolf, Creed, and Maison Francis Kurkdjian are not unprecedented names for you, welcome to the club of luxury fragrance connoisseurs. “Your fragrance is your message, your scented slogan,” quotes French perfumer Maurice Roucel, but in essence, the way you smell is an obvious extension of your personality. You encounter a person’s olfactory aura before you even greet them. Certainly, the fragrance you wear plays a key role in fabricating your first and last(ing) impression. This explains why prestige perfumes have been a hot category in the world of cosmetics over the years—there are classics for loyalists and avant-garde innovations for explorers. 

The global luxury perfume market, valued at US$12.74 billion in 2023, is poised to expand to US$23.26 billion by 2033 at a compound annual growth rate (CAGR) of 6.2 per cent. While America is the biggest market in terms of luxury perfume consumption at US$3,053 million in 2023, India is steadily getting there. According to Statista, the “prestige fragrances segment, which amounts to US$233 million in 2023, is expected to grow annually by 2.11 per cent.” Today, alongside standalone stores of brands like Jo Malone London, Byredo, Victoria’s Secret, Christian Dior, Chanel, and Burberry, are omnichannel retailers like Tira, Sephora, Nykaa Luxe, Maison De Parfums and SCENTIDO. The Indian consumer now has access to a wide plethora of perfumes—from niche and prestige to luxury and mass-produced brands. 

“The spending capacity has drastically increased in the last 10 years; Indians are slowly but gradually moving to niche fragrances and artisanal brands because they have a desire to wear something that is exclusive and expensive. It’s interesting to note that a frequent perfume shopper surely possesses knowledge about perfumes right from notes to the olfactive family,” shares Kimberley D’Silva, marketing manager, SCENTIDO. A new wave of homegrown luxury fragrance (and ittar) labels such as NASO, Bombay Perfumery, Olfa Organics and Boond Fragrances have also entered the landscape. Does that reflect the mushrooming merit of the segment from a business point of view? Perhaps, because of the increasing demand for exotic and rare fragrance blends. We speak to some key opinion leaders in the space to understand why luxury fragrances have gained a certain mileage over the rest. 

Which part of the perfume-making process influences its cost?

Different stages of the product development can vary from brand to brand; their USPs, brand positioning, quality of material, and many other factors determine the mechanisms of production, justifying the corresponding costs. Pranav Kapoor, an eighth-generation perfumer and chef from Kannauj, believes creating a perfume is a delicate dance of art and science, and that the cost of a perfume encompasses several factors, each contributing to its final value. “Firstly, the quality and rarity of raw materials play a significant role. Exotic flowers, rare spices, and unique extracts contribute to both the olfactory richness and the overall exclusivity of the perfume.” In concurrence, Abdulla Ajmal, CEO, Ajmal Group, who attributes approximately 50-60 per cent of the total cost of his brand’s perfume to the fragrance or what we refer to as the ‘juice’ itself, says, “The price of a perfume is decided by the raw materials used—the rest of the process is all standard. Whether you have a perfume that will be sold for US$20 or US$2,000, the fixed cost is the same. The raw material makes a product either cheaper or more expensive.”

Kapoor mentions that the extraction methods also impact the final costs. “Traditional techniques, like steam distillation, often yield lower quantities of precious oils, adding to the expenses. Additionally, the expertise required to handle these delicate processes further enhances the value of the craft.” Krati Tandon, co-founder, Boond Fragrances, gives us a deeper understanding of how exacting traditional methods can be. “We make our fragrances using the centuries-old ‘Deg-Bhapka’ method which involves a slow distillation process wherein a copper vessel or ‘deg’ is filled with organic ingredients like flowers, herbs and water. The vessel is sealed with mud and put on a wood fire. Finally, the fragrant steam travels through the ‘bhapka’ and is cooled in water to become a memorable perfume. The final fragrance is a combination of oils extracted from this process and does not include alcohol.”

Lastly, the packaging, marketing strategies and campaigns, distribution and supply chain management also play their parts in dictating the costs of perfumes. Mayank Bahety, director, Maison De Parfums, has actively been introducing new niche and indulgent fragrances in the Indian market. Through his experience of dealing with a slew of brands under the luxury and prestige category, he opines that “the cost of a perfume is based on factors such as brand reputation, marketing, global presence and also the ‘perceived value’ that can contribute significantly to the price.”

Expensive equals luxury—a false notion?

Consumers have conventionally been buying into “the costlier, the better” perception and cascading it into every purchase decision. However, the price of any product, let alone a perfume, isn’t the only factor that makes it luxury. A perfume could cost US$1,000 and still lack an opulent visual representation, taking away from the overall luxury persona of the product, despite the exorbitant price. “The definition of luxury extends beyond mere expense,” says Ajmal, who does not entirely subscribe to the belief that luxury perfumes are inherently superior. “In today’s market, some brands offer costly products or niche fragrances at very high prices, equating price with luxury and presumed quality. However, this equation oversimplifies what luxury truly means. I believe it is the overall composition of the product and the care taken in selecting the kind of bottle because even in the bottles, there are different classes of bottles, the kind of material used for the caps. For example, we use gold polishing, plus enamel, or hand-painted enamel in some of our caps. However, nowadays, most brands are trying to put a lot of emphasis on the product itself because of discerning consumers as they’re far more knowledgeable and curious about what is in the fragrance’s composition.”

Tandon says luxury perfume brands are often associated with a strong reputation for quality, exclusivity, and craftsmanship. “These brands use high-quality, rare and exotic ingredients which can result in more complex fragrances. Renowned perfumers are sometimes involved in creating these scents, adding an artistic touch to the perfumes. The packaging and presentation of luxury perfumes also increase the overall perception of quality and desirability. Limited production quantities contribute to their exclusivity, and the higher price point often leads to the belief that they are superior in quality.” 

Bahety opines that luxury perfumes are always perceived as better due to their complex and sophisticated scents. “Luxury perfume houses focus on the highest quality form of the ingredients—they are often distributed in a small selection of stores and offer a luxury experience with respect to packaging, quality, and the unique character of the fragrances.” However, “it is important to consider factors beyond price when evaluating the quality of a luxury perfume,” he cites, “as an expensive price tag doesn’t always reflect high quality in terms of ingredients, longevity, or other aspects of a perfume.” If one associates a big-ticket perfume with luxury and quality from a longevity point of view, “they do often exhibit superior longevity on the skin and project well, ensuring that the fragrance lingers throughout the day. This is a testament to the quality of ingredients and the skilful blending process,” adds Kapoor.

What sets luxury perfumes apart?

While the cost and luxuriousness of a perfume may or may not be overlapping concepts, the fact that a truly prestigious fragrance will lend a remarkable olfactory experience is a hundred per cent true. D’Silva shares that luxury fragrances have an upper hand in terms of longevity, sillage and overall quality. “Luxury perfumes, especially niche ones, are exceptionally good because their concentration of oil-to-alcohol ratio is higher and the ingredients are naturally sourced in most of the perfumes. This gives them greater longevity, powerful sillage, and projection. If you have a scented trail of what you sprayed in the morning even at the end of the day, then you know you made the right choice and invested in a good brand.”

Along the same lines, Bahety adds, “The performance of luxury perfume over other ranges of perfumes is always a game changer. From the use of unique combinations of ingredients, fragrance development with maturation and maceration processes, the concentration of the fragrance can easily make the consumer identify a luxury perfume.” Tandon furthers, “Luxury perfumes use premium, rare ingredients to create complex, long-lasting scents, while cheaper options often rely on synthetic substitutes, resulting in simpler fragrances. Luxury brands have established prestige, offering well-crafted packaging and collectable bottles, whereas cheaper perfumes may lack such sophistication. Ethical and environmental considerations are also prominent in luxury perfumery, while cheaper alternatives might not prioritise responsible practices.” 

“Additionally, luxury perfumes may release limited editions or exclusive collections, adding an element of exclusivity and prestige that cheaper alternatives may lack. Regardless of that, high-end brands invest in research and development, creating original and innovative fragrance compositions that set them apart from more generic scents,” says Kapoor. From quality control to the kind of cap used to the fragrance itself, the more the consumer experiences, the more they understand the difference, opines Ajmal. “If someone claims a perfume contains a specific ingredient, like oud, it’s worth investigating whether it’s genuine or a synthetic substitute. Similarly, scrutinise claims about unique ingredients to ascertain their authenticity. Genuine brands will never go out of their way and claim things because they know that they lose their respect if it’s false,” he concludes.

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