Luxury firms diversifying into perfumes

Designer retailers turn to fragrance to expand consumer reach and find new growth drivers

Perfume is playing an increasingly significant role in the business growth of luxury brands, especially in Asia, fueled by the emerging middle class and millennial consumers who are pursuing high-end lifestyles.

Louis Vuitton had not been involved in the perfume business for 70 years, but returned to the sector in 2016. Last year, the brand's cosmetics and perfume category reported sales revenue of 42.6 billion euros ($49.6 billion), up 13 percent year-on-year. It was one of the company's fastest-growing categories.