• by Sarah Mahoney  @mahoney_sarah, December 20, 2018

Coty, which has been stepping up digital initiatives, is using virtual reality to help people explore new fragrances, immersing shoppers in seven separate olfactory experiences.

Rolling out in Buenos Aires, Argentina, the program is designed to help users discover the company’s luxury fragrances, a portfolio that includes scents from Marc Jacobs, Calvin Klein, Gucci and Burberry.

A spokesperson tells Marketing Daily Coty chose Argentina because it is a relatively new luxury fragrance market, and consumers there are eager to learn more about the category. The company intends to scale the experience with select retailers, working with multiple Coty brands.

Consumers put on a virtual-reality headset and then pick up one of seven textured stones, each representing a different experience. Using 3D visuals, sound, fragrance and texture, the experience then uses mixed-reality to create “an additional layer of magic and otherworldliness that the fragrance category is known for.”

In recent months, Coty has introduced the Clairol Color Assistant using Google Assistant. And with its Rimmel cosmetic brand, it’s launched the Cybersmile Assistant, an AI-driven antibullying campaign.

While Coty’s sales have been in a slump, falling 9.2% in its most recent quarter, industrywide luxury fragrance sales are going strong.

The NPD Group says dollar sales of prestige fragrances jumped 8% year-to-date through October, or $2.7 billion in sales, which it says indicates strong sales through the holiday period.

 “After several years of soft holiday performance, fragrance made a comeback in December 2017, proving to be a giftable category for the holidays,” says Larissa Jensen, executive director and beauty industry analyst for the Port Washington, NY-based market research group, in its report. “We continued to see this turnaround during other key periods in 2018, including Valentine’s Day, Mother’s Day and Father’s Day, and I anticipate its streak to continue this Christmas.”