Is Fragrance Key to Earning Future Luxury Consumers’ Loyalty Now?
While Chanel's lipstick once symbolized entry into luxury, Gen Z and Gen Alpha are after a new outlet for self-expression and sophistication. Fragrance, with its universal appeal and huge spectrum of scents, is emerging as the new frontier for low-cost indulgence.
Perfume is the quintessential entry-level luxury product for young consumers who might not have the income to spend thousands on bags or clothes yet — but are set to become key luxury consumers by 2030.
Let's explore why fragrance is so popular for Gen Z and Alpha and how luxury brands are already leveraging it to build brand loyalty.
Future Luxury Consumers Love Perfume
While fragrances have been a wardrobe staple among the wealthy for centuries, the perfume industry has truly had a renaissance in the last decade — thanks in large part to Gen Z, or those born between 1997 and 2012.
A key driving factor behind this is its role in self-expression. In a world where individuality is everything to Gen Zers, fragrance allows them to communicate their identity, tastes, and personality through scent. It’s their way to curate their image and stand out.
Gen Z is the biggest purchaser of fragrance, with 83% of Gen Zers using perfume in 2023 (5% more than in 2022). They’re also the generation most likely to purchase fragrances for themselves multiple times per year. This is thanks to their heavy usage of the product. They like to wear multiple different scents per week and spray them not just on the skin, but on their clothes and hair too.
This upward tick in perfume sales among younger consumers started back in 2020, during the pandemic, but has shown no signs of slowing. This could be attributed to several things: consumers ‘treating’ themselves in lockdown, an appreciation for the mood-boosting attributes of perfume, and the rise of TikTok use across the globe which coincided with the pandemic.
We know that TikTok can shape consumer trends and spending habits. Hashtags like #Perfumetok have gained immense popularity, with 7.6 billion followers sharing fragrance reviews, recommendations, and tutorials.
Of course, just like lipstick, perfume is also an entry point to luxury brands. Gen Z — who may be students or on low wages — can use name-brand perfumes to smell and feel luxurious. This presents a great opportunity for luxury brands looking to win over Gen Zers and create loyal future customers.
How Luxury Brands Are Using Fragrance to Capture Future Luxury Buyers
Gen Z and Gen Alpha (those born after 2012) are predicted to become the biggest buyers of luxury products by 2030. Experts estimate that they will account for at least 80% of global purchases within six years.
This is the chance for luxury brands to make a lasting impression and win them over to secure their loyalty now. This can be done with low-ticket, entry-level products like fragrance and beauty which are more affordable and accessible. And if brands can convert Gen Zers into customers now, there’s more of a chance they’ll make repeat purchases as they get older and have more spending power.
Let’s take a look at some examples.
CHANEL LAUNCHED A DIGITAL-FIRST CHANCE CAMPAIGN
Chanel is, historically, a luxury brand associated with “elite” middle-aged women — Coco Chanel was 38 when Chanel No5 was first released and 50 when she became the first face of the fragrance, appearing in an advertisement published by Harper's Bazaar in 1937.
However, in recent years, the brand has made inroads into changing that perception and forging relationships with younger consumers.
Their Chance fragrance campaign is an excellent example of this. They tapped young, fresh-faced models who would appeal to Gen Z to be in the campaign. Instead of regular print and TV ads, Chanel dropped fun and colorful imagery and videos on YouTube and Instagram. The release was launched in parallel with a Chanel online mobile game, an immersive and customizable experience that involves players in the brand.
DIOR GAVE MISS DIOR A 2024 REVAMP
Miss Dior is a tentpole fragrance for the French fashion house, which originally hit the shelves back in 1947. Though it has gone through various iterations over the years, the classic fragrance was revamped in 2024 for a younger audience, as an attempt for Dior to capture the youth market.
Leaving department stores behind, the brand launched the new fragrance with a pink pop-up in LA, designed to look like a 1960s Parisian street. Consumers could visit and be immersed in all things Miss Dior, from a flower shop to a cafe where they could eat gelato and write postcards. Of course, there was a social angle too. The best moments from the pop-up were captured and shared on TikTok, tapping into that ever-growing #PerfumeTok audience.
MARC JACOB'S MADE DAISY SUSTAINABLE
Originally launched in 2007, Marc Jacob's Daisy perfume, with its playful sweet floral notes, has always targeted a younger audience. The brand’s latest release of the perfume, Daisy Wild, launched in 2024, takes its Gen Z appeal to the next level, though, with a statement on sustainability.
Now available as a refill, Marc Jacobs has ensured that Daisy Wild reduces its environmental impact and reinforces the brand’s commitment to the earth that inspires the Daisy collection.
Daisy Wild was also launched in parallel to another Marc Jacob’s fragrance, their limited edition Daisy Pop. The matte pink bottle is slightly more bright and zesty than the standard Daisy perfume, capitalizing on Gen Z’s desire to own multiple perfumes for different occasions.
YSL CELEBRATED GEN Z’S INDIVIDUALITY WITH MYSLF
Research shows that Gen Zers value individual expression and avoid labels, and this is exactly what YSL has tapped into with their Myslf fragrance.
The campaign is distinctly male, but is a departure from the stereotypical masculine personas often seen in luxury advertising. The campaign used five Gen Z actors aimed to represent a full spectrum of masculinity, including rapper Lil Yachty and Stranger Things actor Finn Wolfhard.
Though all five models were involved as faces of the campaign, they were shot individually, allowing for their own personalities to shine — harkening back to the ‘self-expression’ that Gen Z associates with fragrance.
The Power of Fragrance
Gen Zers aren't just influencing the ways brands market their perfumes, but how they create them too. Legacy fashion houses like Chanel, Dior, and YSL are looking to those born after 1997 to shape their business strategy, as this is where the money will be coming from by 2030.
Even L’Oreal is now planning to create a perfume line to bring in these younger tastemakers. They’re even leveraging eco-friendly ‘green science’ techniques, no doubt because of the importance Gen Z places on brands being ethical and sustainable.
With all this in mind, could now be the right time for your luxury brand to launch a fragrance and grow your Gen Z following?
