Business
Skunk
Getty Images
Scentsible

Estée Lauder’s Jo Malone is launching an “AI Scent Advisor” to convince people to buy perfumes without smelling them

Gen Z is driving a perfume and fragrance boom.

Gen Z is driving something of a fragrance boom at the moment, and Estée Lauder is looking to continue cashing in by debuting an “AI Scent Advisor,” developed with Google Cloud, that it hopes will convince online shoppers to spend north of $100 on fragrances through a chatbot conversation that tries to capture the intangible experience of smelling. Perhaps a dream-come-true moment for the so-called “frag heads” who look for seriously unique scents to match bizarre situations, or even memes.

The launch of the AI scent stylist gives another avenue for Estée Lauder to grow its stable of fragrance and perfume brands — a roster that includes Tom Ford, Frederic Malle, Le Labo, and Kilian. Indeed, the debut marks a pivotal step for a company that was late to go all in on online retail, but has been catching up quickly, with its fragrance division now the company’s fastest-growing segment, growing its sales 14.4% year on year as of the latest quarter.

Fragrance is driving Estee Lauder’s growth
Sherwood News

In fact, it’s the only division of the 79-year-old company that has managed constant, meaningful growth for the past few years, with fragrances notching an 89% jump in net sales since the first three months of 2018 — even as the wider beauty industry slumped.

Fragrance drove EL’s growth since 2018
Sherwood News

Smells like teen spirit

Fragrance’s digital focus is not new: Spanish beauty giant Puig, whose fragrance and fashion segment, with labels like Carolina Herrera and Byredo, accounts for 73% of its entire business, is also doubling down on the visual appeal of perfume to attract younger consumers online. Last year, 26% of Puig’s revenues came from digital channels, more than the company had anticipated five years ago, thanks to the brand’s film-like marketing strategy… and teenage boys who became “obsessed with fragrance” through TikTok, in CEO Marc Puig’s words. 

In fact, it’s very much not just girls driving the growth for the latest hype, too — annual fragrance spending reportedly jumped some 44% for teenage boys last year, per Piper Sandler research. And thanks to increasingly popular review websites like Fragrantica and big perfume houses’ push for visual focus and greater exposure in TikTok shops, many of these new, younger consumers love to “blind buy,” buying fragrances without even smelling them.

Teens wanting to be unique and special is certainly not a new thing, but in the perfumery world, that youthful desire, combined with new terms and trends like “scent layering” and “smellmaxxing” (meaning enhancing one’s own body scent, if you had to google), translates into, well, a lot of money.

More Business

See all Business
business

Netflix is down amid reports it’s leading the Warner Bros. bidding war as Paramount cries foul

Netflix’s charm offensive appears to be working.

Netflix is reportedly emerging as the leader in the bidding war for Warner Bros. Discovery after second-round bids this week, edging out entertainment juggernaut rivals Comcast and Paramount Skydance.

Investors don’t appear psyched by the streaming leader’s turn of fortune: the stock is down on Thursday morning, a day after closing down nearly 5% following reports that scooping up HBO Max wouldn’t necessarily result in a big market share boost.

Paramount, which has reportedly made five bids for Warner Bros. Discovery, doesn’t love the current state of play, either. The company sent WBD a letter questioning the “fairness and adequacy” of the process, highlighting reports that WBD’s board favors Netflix and is resisting Paramount.

Any offer would be subject to regulatory approval — a fact that may have weighed against Netflix’s offer given that cofounder Reed Hastings’ politics are vocally to the left, very much at odds with the current regulatory regime. Paramount seems confident in its ability to get approval, reportedly boosting its breakup fee to $5 billion should its potential acquisition fall apart in the regulatory process.

Investors don’t appear psyched by the streaming leader’s turn of fortune: the stock is down on Thursday morning, a day after closing down nearly 5% following reports that scooping up HBO Max wouldn’t necessarily result in a big market share boost.

Paramount, which has reportedly made five bids for Warner Bros. Discovery, doesn’t love the current state of play, either. The company sent WBD a letter questioning the “fairness and adequacy” of the process, highlighting reports that WBD’s board favors Netflix and is resisting Paramount.

Any offer would be subject to regulatory approval — a fact that may have weighed against Netflix’s offer given that cofounder Reed Hastings’ politics are vocally to the left, very much at odds with the current regulatory regime. Paramount seems confident in its ability to get approval, reportedly boosting its breakup fee to $5 billion should its potential acquisition fall apart in the regulatory process.

business

Delta says the government shutdown will cost it $200 million in Q4

The 43-day government shutdown that ended last month will result in a $200 million ding for Delta Air Lines, the airline said in a filing on Wednesday.

That’s about $100,000 per shutdown-related canceled flight. (Delta previously said it canceled more than 2,000 flights due to FAA flight reductions.) When the company reports its fourth-quarter earnings, the shutdown will lop off about $0.25 per share.

Delta initially stayed calm about the shutdown, with CEO Ed Bastian stating in early October that the company was running smoothly and hadn’t seen any impacts at all. One historically long shutdown later, Delta wasn’t able to remain untouched.

The skies have since cleared, though, and Delta’s filing states that booking growth has “returned to initial expectations following a temporary softening in November.”

Delta’s shares were up over 2% as of Wednesday’s market open.

Delta initially stayed calm about the shutdown, with CEO Ed Bastian stating in early October that the company was running smoothly and hadn’t seen any impacts at all. One historically long shutdown later, Delta wasn’t able to remain untouched.

The skies have since cleared, though, and Delta’s filing states that booking growth has “returned to initial expectations following a temporary softening in November.”

Delta’s shares were up over 2% as of Wednesday’s market open.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.