Niche Fragrance's Ripple Effect

Niche Fragrance's Ripple Effect

From the Archive

Market Insights

2023

Why are Snobs so important to Niche Fragrance Brands?

Why are Snobs so important to Niche Fragrance Brands?

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In many discussions, I describe the importance of differentiating between different types of consumers in niche fragrance.

As we have seen for ages within the world of luxury watches, cars, wines, and more recently within niche fragrance and sneakers, consumers gradually develop competencies within specific product categories over time. As they develop these competencies, they will gradually move from novices to connoisseurs. But what makes these connoisseurs so important for niche fragrance brands, considering their relatively small proportion within the customer base?

Beyond their propensity for increased spending and wider product exploration, connoisseurs play an important role in opening up new markets for brands.

Luxury products afford✌ types of social influence:
The first is by signaling status and wealth. Studies have shown that people are less likely to honk at an expensive car. When a consumer wears a luxury designer t-shirt, others exhibit more submissive behavior toward the wearer. A man who owns a Porsche attracts the attention of women and is considered a more desirable short-term partner. This seems to happen due to a mix of the perceiver’s attraction, intimidation, and fear based on the resources, achievements, and success that the influencer has earned.

The second type of influence is through persuasion. Consumers with luxury expertise are considered credible and trustworthy sources because they display domain-specific expertise, taste, and sensitivity to luxury symbolism. Research has shown that a person with authority originating from expertise can exercise significant social influence, known as “soft influence” and get others to conform and comply.

Luxury consumers with competencies have considerable persuasive social influence on others’ perceptions, choices, and behaviors. They are likely to be opinion leaders through word of mouth and influencers on social media.

The trickle-down theory, observed in various luxury markets, takes on a unique dynamic within niche fragrance. Unlike traditional models that originate among the elite, here, the trickle-down effect starts with connoisseurs, gradually permeating wider consumer circles. This is highly noticeable when examining frag-communities and monitoring the brands that are most talked about that eventually permeate broader forums.

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And so, connoisseurs are obviously important, but also very hard to please, as they are very discerning, sometimes even snobbish. They value novelty, limited editions, exclusivity, behind-the-scenes glimpses, and detest compromises on brand identity or any activities perceived as devaluing of the brand.

Niche fragrance brands that successfully integrate themselves into these community discussions, catering to preferences while managing authenticity, will find influential voices championing their products, effectively opening new markets and avenues of growth.
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"This is an article I published on LinkedIn that I later removed because I felt it gave away too much away."

Marcus Nymand Jacobsen

Marcus Nymand Jacobsen, Managing Partner

________________________


In many discussions, I describe the importance of differentiating between different types of consumers in niche fragrance.

As we have seen for ages within the world of luxury watches, cars, wines, and more recently within niche fragrance and sneakers, consumers gradually develop competencies within specific product categories over time. As they develop these competencies, they will gradually move from novices to connoisseurs. But what makes these connoisseurs so important for niche fragrance brands, considering their relatively small proportion within the customer base?

Beyond their propensity for increased spending and wider product exploration, connoisseurs play an important role in opening up new markets for brands.

Luxury products afford✌ types of social influence:
The first is by signaling status and wealth. Studies have shown that people are less likely to honk at an expensive car. When a consumer wears a luxury designer t-shirt, others exhibit more submissive behavior toward the wearer. A man who owns a Porsche attracts the attention of women and is considered a more desirable short-term partner. This seems to happen due to a mix of the perceiver’s attraction, intimidation, and fear based on the resources, achievements, and success that the influencer has earned.

The second type of influence is through persuasion. Consumers with luxury expertise are considered credible and trustworthy sources because they display domain-specific expertise, taste, and sensitivity to luxury symbolism. Research has shown that a person with authority originating from expertise can exercise significant social influence, known as “soft influence” and get others to conform and comply.

Luxury consumers with competencies have considerable persuasive social influence on others’ perceptions, choices, and behaviors. They are likely to be opinion leaders through word of mouth and influencers on social media.

The trickle-down theory, observed in various luxury markets, takes on a unique dynamic within niche fragrance. Unlike traditional models that originate among the elite, here, the trickle-down effect starts with connoisseurs, gradually permeating wider consumer circles. This is highly noticeable when examining frag-communities and monitoring the brands that are most talked about that eventually permeate broader forums.

______________
And so, connoisseurs are obviously important, but also very hard to please, as they are very discerning, sometimes even snobbish. They value novelty, limited editions, exclusivity, behind-the-scenes glimpses, and detest compromises on brand identity or any activities perceived as devaluing of the brand.

Niche fragrance brands that successfully integrate themselves into these community discussions, catering to preferences while managing authenticity, will find influential voices championing their products, effectively opening new markets and avenues of growth.
______________

"This is an article I published on LinkedIn that I later removed because I felt it gave away too much away."

Marcus Nymand Jacobsen

Marcus Nymand Jacobsen, Managing Partner

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