The Fragrance Foundation hosted their annual State of the Industry luncheon at the Harvard Club in New York City on November 17.

Rochelle Bloom, president of The Fragrance Foundation, welcomed Michael Edwards, author of Fragrances of the World; Lynn Franco, director of the Consumer Research Center for The Conference Board; Wendy Liebmann, CEO of WSL Strategic Retail; and Carrie Mellage, director of consumer products for Kline & Company, as this year’s speakers to provide insight on past, current and future trends in the fragrance industry.

“In 2011, 1,200 new fragrances were introduced, as opposed to a total of 372 that were introduced ten years ago,” said Edwards. “We are seeing a significant increase in unisex fragrances, primarily due to the rise in niche brands. Personally, I see niche as being the seed ground for the future of prestige.”

Franco continued the presentation with an overview of the U.S. consumer mindset in current economic conditions.

“With weak job growth expected for the months ahead, the current economic environment is suppressing consumer confidence and we are moving sideways as a whole,” said Franco. “There continues to be a clash between consumers’ desire and their ability to spend, but they will remain in a cautious mood heading into the holiday season.”

Liebmann discussed “The Sweet Smell of Shopping,” and the extraordinary resilience in the mind of an American shopper post-recession.

“She’s accepted a new reality, become a smarter shopper, and has many more tools in hand,” said Liebmann. “Online purchasing has become such a massive factor, and 47% of shoppers now use mobile in-store to shop, which is creating tremendous changes in retail at large. It’s stunning the innovation that has occurred in beauty over the last 12 months, and we need to dazzle her with the future, not dig up the past.”

Mellage closed the presentation with her explanation of the sudden boom in the fragrance market.

“Alongside a relatively strong stock market and consumers’ frugal fatigue, foreign tourism is a big factor,” said Mellage. “Tourists are spending big on luxury items—up 13% over 2010—as they are attracted by lower prices and a weak U.S. dollar. We expect this to contribute to the personal care industry’s record high sales this year of $56 billion.”

WSL Strategic Retail’s Wendy Liebmann,
Kline & Company’s Carrie Mellage, and
The Conference Board’s Lynn Franco with Michael Edwards of Fragrances of the World.

The Fragrance Foundation’s Rochelle Bloom
and Ann Gottlieb Associates’ Ann Gottlieb
with Allison Slater of Sephora.

SGD’s Peter Acerra and Shéhérazade Chamlou with Art Spiro of Elizabeth Arden.

Arcade Marketing’s Eric Dalbo, Debra Leipman-Yale and Larry Berman with Ruth Sutcliffe (2nd l.) of Coty.

Pochet’s Gerald Walle and Boris Zivkovic.

Palm Beach Beauté’s Paul Smith
and Ted Boccuzzi of ADS.

Gaia One’s Elizabeth Gaynes and Nick Graham with Cos Policastro of Givaudan (c.).

Symrise’s Jessica Wolfe and Mark Knitowski of Victoria’s Secret Beauty.

IFF’s Julie Pruett and Lorenzo Cavallaro with Dana Kline of Fusion Brands (c.).

Robertet’s Jennifer Powderly and Alison Chaneski of Givaudan.

Firmenich’s Dara Quinlan and Caroline Ornst.