As millennials continue to take over the majority of the workforce and in turn, continue to impact the economy, we're seeing less buying interest in high-ticket items. Luxury fragrance is no exception. This generation over 80 million strong, enter the workforce and economy with depressingly outrageous student loan debt hanging over them, a major factor in shaping their spending habits. The lust for luxury items is being met with the necessity of sustainability. Purchasing a near $100 bottled scent doesn't align with these more modern millennial values.
What could this mean for the likes of luxuries like high-end fragrance?
This January, high-end fragrance powerhouse COTY bought major stake in Younique, valuing the online direct-sales cosmetic company at a jaw-dropping $1 billion. A company whose highest-priced item maxes out at around $40 may be the last hope to offset debts from the parent company's declining luxury fragrance sales.
Now, as we're seeing early termination of manufacturing contracts, stunningly ambitious investments and other business moves on the horizon, we're curious about how the market will shape to buyer appeal. Can millennials be convinced through marketing and product quality to justify spending a little more on a signature scent? Only time will tell.
Do you have a favorite luxury scent? Share your thoughts with us!