When looking at niche markets, there is undoubtedly no other industry that uses the term more often than that of perfumery. With that in mind, what is the definition of a niche market? What does the term mean in relationship to perfumery? Does it imply better and more expensive?
What Does Niche Mean?
By its very definition, "a niche market is a segment of a larger market that can be defined by its own unique needs, preferences, or identity that makes it different from the market at large."
When reading this definition, I feel the interpretation is that niche means 'different' and not necessarily wanting or needing to please everyone. It is worth noting that the definition makes no mention of the price or the quality of the item within the niche.
You are probably wondering--how does this relate to the industry of perfumery. Well, for one thing, the perfume industry has welcomed and embraced the term niche with open arms. So much so that it is quickly becoming the newest buzzword.
There is no other industry that uses the term as often as the perfume industry does.
We have all heard of, or see, the popular mainstream brands of perfume. Most of these brands not only launch fragrances, but they most often have a brand of bags or accessories as well—all to lure the consumer into buying not only each product but into the brand as a whole,
Perfume brands have rather expensive budgets to spend on marketing to learn which advertising formula will appeal to the broader market overall. Significant advertising revenue is put into various lavious campaigns that feature both models and actors, all in the name of adding allure and extra appeal to the fragrance.
Once they have hit on a winning fragrance, they then produce multiple variations in an attempt to please even more individuals.
It is essential that the consumer not assume that the niche fragrance's current rise isn't going without notice by the designer brands. In an attempt to get in on their share of the increasingly popular niche market, they have introduced more and more lines.
Let’s consider those brands such as Acqua Di Parma or Tom Ford. Although some wouldn't consider these perfume brands a lucrative side product, would it be considered a niche? You will find them in almost every medium to large city in the world, with them offering over 70 varieties of fragrances, boasting that they have something for every taste. More expensive and more exclusive—yes—but would they be considered niche?
Even though it is more complicated, the same can basically be said about the avant-garde brands. Even considering that their offerings are mainly the biggest crowd pleasures, they are still, like the luxury brands, available across the world, if only selectively. They are both exclusive and luxurious, and even though they have been widely released, would they be considered niche?
What Does The Term Mean In Relationship To Perfumery?
What it all comes down, when you look at it on the most basic of terms, defining niche can lead to quite a bit of confusion. Niche seems to mean something different to different people, and as such, there is no clear hard and fast line on what you can call a niche perfume and what you can’t.
The best manner in which to look at the term niche fragrance brand is to consider this explanation:
These are perfumes that are handcrafted on a much smaller scale, usually by an independent perfume house. The perfumes will be offered in a limited collection, unlike the brands that have extensive collections.
A niche fragrance will have a story that sets them apart from the other brands and is not only inspirational but both clear and distinct.
A niche fragrance brand operates with the sole passion that they create unique perfumes and are not caught up in the whole "pleasing everyone" dynamic, aiming more at pleasing the individual instead.
Does It Imply Better And More Expensive?
In most cases, niche fragrances can prove to be more expensive. This, as it turns out, is not always the case, but more often than not, they are. There are several reasons that give insight into why this is:
- The fragrance creators use more expensive and higher quality ingredients.
- The fragrance creators take a much greater risk in terms of creativity than brand designers, resulting in higher payoffs.
- The fragrance creators take great pride in exclusivity as people are willing to pay more to smell different than anyone else.
- Niche fragrance creators are happier to serve a small client base, and if they choose to lower their prices, they may not be able to meet the demand and the increase in customers.
Whether you can, or even wish to, pay the higher price is something you will have to decide. Niche fragrances are not created, nor directed at, as everyone out there. As such, the prices are set for those who can and are willing to pay them.
The best way of thinking of a niche fragrance is to compare it to an iPhone.
The new iPhone 13, priced in the range of upwards of $1000, is a great phone, and if you have the money and are willing to spend that amount on the phone, it is a great choice.
However, there is also the option of a wide selection of cheaper smartphones out there for as little as $100. These phones work great as well and are a perfect choice for almost everyone.
Those that use niche fragrances are those individuals that feel the appeal to the fragrance is well worth the cost. Although this analogy may not be true for everyone, there is a significantly large enough segment of the consumer base that feels the cost is worth it as the niche fragrance market continues to grow.
If you are looking to sample great smelling, premium scents, take a look at Scent Decant. We offer an economical perfume & cologne samples that allows you to test a wide variety of scents and determine what works for you without breaking the bank.