
“It shouldn’t be online vs offline” says Puig Chief Operating Officer Javier Bach who underscores the significance of an omnichannel method
INTERNATIONAL. Puig Chief Operating Officer Javier Bach opened Day Two of Beauty Tech Live with a compelling session on experiencing and promoting fragrances online.
Family-owned fragrance firm has Puig forecast that 30% of its enterprise will come from digital by 2025. In a one-on-one interview with BW Confidential Editor-in-Chief Oonagh Phillips, Bach mentioned Puig’s online acceleration, classes over the final 12 months, the function of brick & mortar shops and Puig’s ‘good fundamentals’ method to standing out in a aggressive digital market.
“2020 was a 12 months of learnings,” Bach mentioned. “We initially predicted 25% of our enterprise will develop into digital by 2025, however our ecommerce enterprise in status fragrances went from 12-13% in 2019 to 24% 2020, reaching our projections 5 years early. It was 5 years of digital acceleration in a single.”
The brick & mortar retailer has to evolve to develop into extra elevated and experiential, Bach says. Pictured above is Penhaligon’s hanging pop-up at Hamad International Airport (launched in partnership with Qatar Duty Free).
Despite the super progress of digital, Bach says that there’ll all the time be a spot for bodily shops — notably these with omnichannel capacities — in the fragrance trade. He mentioned, “Offline shops will all the time be essential, notably in perfumery,” he mentioned. “This is as a result of nobody has cracked the method on how clients can odor online, so we rely on bodily shops to handle that a part of the journey.
“We noticed exponential progress in our personal ecommerce, however while you have a look at e-tailing, pure gamers and marketplaces, we seen that omnichannel gamers carried out higher than their pure digital counterparts. It’s not online versus offline, however how you amplify each of them.”
When requested if a maturation level for online will quickly be reached, Bach mentioned: “We imagine that online will develop into extra related in the years to come back. Customers who’ve shifted to online purchasing received’t return to in-retailer purchasing; and the investments that retailers and types have put in direction of enhancing the digital purchasing experience will push much more customers to buy online.”
Bach says that fragrance manufacturers have to have ‘good fundamentals’ to face out in a aggressive online market
With a lot emphasis positioned on digital, how should the brick & mortar retailer evolve to maintain up? “The function of bodily shops has to evolve. Online brings a lot comfort, forcing manufacturers and retailers to rethink how their shops function. Brick & mortar must develop into extra experiential and elevated. If they rely on a purely transactional method, they are going to lose the race to online. An omnichannel method is essential. It’s not online vs offline, however as a substitute how do you incorporate each to reinforce the shopper journey.”
According to Bach, those that fail to satisfy the problem of omnichannel will likely be left behind in the new retail panorama. He mentioned: “The enormous online acceleration hasn’t resulted in internet progress for our trade. In many markets, this progress has been at the expense of offline networks and this may power door closures, particularly for individuals who fail to adapt. COVID-19 has merely accelerated these underlying dynamics.”
So, how can fragrance manufacturers stand out in a crowded online market? Bach mentioned, it’s all about having good fundamentals. “You have to be glorious by way of channel search, visibility, rankings and opinions to face out. It’s actually about having good fundamentals and having efficient execution. Part of our technique is mastering the omnichannel connection and conversion of customers. Brands want to know who their buyer is and all the touchpoints of their purchasing journey.
In 2020, Puig launched AI.LICE, an progressive new cellular know-how that enables clients to preview scents in actual time with out testing or smelling it
Puig-owned heritage fragrance model Penhaligon’s was the first to introduce the AI.LICE know-how by way of its ‘Magic Monocle’ digital software
Known as a relentless disruptor and innovator in the fragrance world, Puig has deployed a variety of online fragrance improvements and communication methods to adapt to the rising online shift. “Each touchpoint has the capability so as to add or destroy worth for customers and types want to determine how so as to add worth at each second,” he added. “Puig is thought for creativity and disruption and our groups are continually upsetting the establishment by way of content material, product growth and digital innovation.”
Speaking of fragrance innovation, Bach additionally mentioned a few of Puig’s newest fragrance know-how achievements and how these improvements will influence its future method. He mentioned, “We have developed a fragrance profiler, which is a proprietary know-how that mixes the largest fragrance database with wonderful ingredient photos and related key phrases. You can’t odor the product, nevertheless it’s the closest factor you can get utilizing photos and phrases.
“The profiler additionally allows customers to create their very own olfactive profiles,” he added. “For retailers, this provides them extra focused sampling and for customers they can share with associates to reinforce gifting. We’ve carried out this software on our personal web sites and with chosen retail companions. So far, the outcomes have been wonderful by way of conversion, engagement and common transaction worth.
In addition to the fragrance profiler, Puig has additionally launched the ‘Air Parfum’ software which lets clients trial and odor varied fragrances with out getting over-saturated. “We’re additionally in search of new methods to empower our magnificence advisors by way of know-how,” Bach mentioned. “Our Air Parfum software removes the saturation ache level on the subject of fragrance sampling and thru this, we’re enhancing our magnificence advisors means to attach with clients and improve the trial experience.”
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