Beyond Common Scents

Innovative fragrance delivery systems, varieties and promotions are providing new selling opportunities for manufacturers and retailers.

Air fresheners and scented candles have long been mainstays in American homes, but of late, the category has seen steady dips, particularly in the face of an economic downturn, when such items are viewed by many consumers as extras rather than necessities.

Confirming that assertion is the most recent 52-week data for the period ended Nov. 27, 2010, from the Schaumburg, Ill.-based Nielsen Company, which found overall air freshener/deodorizer dollar sales dropping 1.6 percent, following a 5.0 percent decline in the year-ago period. All air freshener segments experienced decreases, with the happy exception of solids, which saw a 11.3 percent increase in dollar sales on top of 14.1 percent growth in 2009, helped no doubt by new product introductions — and their more affordable price points — that piqued shopper interest.

For the same period, dollar sales for candles and accessories fell 4.8 percent, while incense and scent holder dollar sales rose 1.5 percent, offering further proof that when the right items come along in terms of utility and price, shoppers will buy even those products they deem discretionary.

Further, with a more consumers finally accustomed to adapting their purchase behavior to be slightly more liberal than was demonstrated during the peak economic spiral, manufacturers and retailers have a chance to play up the latest advances in the air freshener and scented candle category which, if all goes as expected, is poised to come up smelling like a rose.

“Fragrance choice seems to be the driving factor in consumer purchases in candles.” —Eddie Owens, United Supermarkets

When asked which types of products appeal most to shoppers at Reading, Pa.-based Redner's Markets, Eric B. White, the grocer's consumer communications specialist, cites plug-ins or electrical-based products, which he says “require a limited amount of oversight or management. The timed devices are easy to manage, as the consumer simply plugs them in and checks on the item in 30 days or more. Flameless and LED flickering candles are emerging as being more appealing due to the lack of an open flame for purposes of safety, and their realistic look, which can be combined with time-released air fresheners.

“Consumers are aware of the technological advances being put into the products through product marketing,” he adds, noting that Redner's, which operates 39 Warehouse Markets and 13 Quick Shoppes in eastern Pennsylvania, Maryland and Delaware, relies most heavily “on manufacturer-driven promotions through Catalina or FSIs, while strong center store/aisle displays and proximity to seasonal merchandising are the biggest drivers in sales” of such items.

Over at Lubbock, Texas-based United Supermarkets, however, director, corporate communications Eddie Owens believes that “the average consumer is probably not aware of the many differences in technology used in making candles in general.” To help bridge this knowledge gap, the grocer, which operates 50 stores in north and west Texas under the United Supermarkets, Market Street and Amigos United banners, occasionally “posts educational information at the point of purchase for the consumer, if the manufacturer provides the information in a format that works well with our merchandising strategy.”

When it comes to consumer buying preferences, “fragrance choice seems to be the driving factor in consumer purchases of candles,” notes Owens. “Glass-jar candles and votives carry the volume of sales in the candle category. Consumers purchase fragrances based on the time of year. For example: lighter, cleaner fragrances in the spring/summer, richer, deeper fragrances in the fall and winter.”

United's extensive candle offering, which includes both everyday and seasonal items, has been designed to stand out. “Many of our candles are merchandised on wood shelving units and displayed in an array of color, size and price points,” explains Owens. “The unique shelving helps to draw consumer attention to the products.” Further, the retailer employs “point-of-sale information as well as advertising to support candle purchases,” he says. “Candles are considered an impulse purchase” whose sales appeal is heavily dependent on the particular time of year.

“Fourth quarter is peak time for candle sales; therefore, we will continue to see the fall and holiday scents as the strongest in the category,” Owens observes. “Other items within the category that are gaining consumer interest are the flameless products such as wax warmers, diffusers and battery-operated candles.”

The Sweet Smell of Success?

Manufacturers are tapping into such consumer interest in imaginative ways. For instance CPG powerhouse Procter & Gamble recently introduced Febreze Set & Refresh, which was designed to freshen noticeably longer than cone air fresheners. According to Cincinnati-based P&G, the item features a unique technology that slowly releases scented oils, continually providing odor elimination and long-lasting freshness.

“Consumers are always looking for ways to get continual freshness and rid their homes of lingering odors,” says Febreze brand manager Scott Beal. “Set & Refresh provides consumers with a hassle-free [way] to get up to 30 days of freshness in any area of their home, without plugs and batteries.” The product comes in Linen & Sky, Spring & Renewal, Meadows & Rain, Hawaiian Aloha, Thai Dragon Fruit, and Apple Spice & Delight scents.

To launch the item, Febreze joined up with Sandra Lee, host of the Food Network's “Money Saving Meals” program, for a series of online videos on Febreze.com, YouTube, Facebook and the House Party website that showed how to plan for unexpected guests. Lee also helped women across the country throw 6,000 parties in late June, providing the hosts and attendees an exclusive opportunity to sample Set & Refresh before it arrived in stores.

Additionally, as a way to appeal to the primarily Hispanic shoppers who are loyal purchasers of its Gain detergent, P&G has extended the product line to include Febreze with Gain Original Scent Fabric Refresher, Air Effects, Candles and Noticeables.

In response to research performed on its behalf by New York-based Harris Interactive finding that nearly half of women believe that the simple daily luxuries they rely on to improve their outlooks and relieve stress begin at home, SC Johnson has tailored The Fragrance Collection by Glade explicitly to stressed female consumers through such scents as Lemongrass & Citrus, rolled out this past summer as “a … revitalizing and cleansing experience that's indulgent and accessible.”

“Women want to indulge with products they can trust and depend on to enhance their lives.” —Kelly M. Semrau, SC Johnson

“SC Johnson knows that women want to indulge with products they can trust and depend on to enhance their lives,” explains Kelly M. Semrau, the Racine, Wis.-based company's VP of global public affairs and communication. “The new Lemongrass & Citrus scent was designed to offer a refreshing fragrance experience that women can count on to add freshness to their home and lift their spirits.”

Featuring reed diffusers, 10-ounce three-wick soy-based candles and 2-ounce soy-based candles, the product line also consists of Currants & Açai, Sheer White Cotton, and Jasmine & Wild Orchid varieties. The 2010 holiday collection also included a 10-ounce GiftPack and came in Pomegranate & Cranberries and Fresh Pine & Cedar scents.

From Sept.1 through, Oct. 31, the brand also offered fans the opportunity to join celebrities, fashion designers and home décor pros in expressing their personal style through the Glade Design and Shine Contest, which invited consumers to virtually design their own Glade Scented Oil Candle Decorative Glass Holder. Two grand-prize winners received $10,000 and will have their design sold in stores this year, while six first-place winners got $750 apiece. Contestants could visit GladeDesignandShine.com to check out designs from the likes of Giuliana Rancic of “E! News” and Evette Rios of “The Rachel Ray Show,” and come up with their own creations.

Meanwhile, smaller manufacturers are growing more innovative as well. “Our company … has launched a new home fragrance brand that caters specifically to the food, drug and mass channel,” says Marieke Finck, PR and marketing manager of Rockville, Md.-based Pacific Trade International Inc., whose signature brand, Chesapeake Bay Candle, is available primarily through mid-tier department stores and specialty stores. “The new home fragrance brand is called Modern Light and was officially launched during the International Homes and Housewares Show in March 2010 … Modern Light designs are modern, clean and fresh, and the fragrances sophisticated yet understandable. The brand caters to an aspirational customer who is smart, modern, working and forever young. She loves to decorate and to entertain at home.”

Modern Light currently offers two inline programs, Aroma Essentials, a collection of home fragrance necessities currently available at Winn-Dixie, and Corner Bakery, a lifestyle collection inspired by the gourmand and designer-bakery trend, as well as various seasonal programs including a Harvest collection (available at Wegmans), Holiday, Valentine's Day and Spring.

The Harvest 2010 collection included a new product for Pacific Trade International: scented air fresheners made from felt. “This product has become a huge hit with consumers, and sales have been extraordinarily positive,” notes Finck. “The air freshener has the shape of leaf in a rich, gradient color story for fall. A mini scented air freshener is also available as a gift with purchase of any large jar candle.”

In the realm of cause marketing, the company introduced to retail channels — including food, drug and mass — the Chesapeake Bay Candle-Susan C. Komen collection of three jar candles, three high-fragrance candles in boxes, and one trio votive set, in three fragrances: Cherry Blossom, White Peach Bamboo and Vanilla Rice Flower. One dollar from every candle sold went to Susan G. Komen for the Cure to fight breast cancer, with a guaranteed minimum donation of $100,000.

With so much creativity in the air, sales look set to reignite. Redner's White says it best: “As technology becomes more advanced, with an emphasis on ease of use by the consumer, and as scent technology continues to produce excellent products, consumers will continue to support this category.”