In a strategic move signaling the growing dynamics of the fragrance sector, L Catterton, the private equity powerhouse backed by luxury conglomerate LVMH, has invested in Vyrao, a rising star in the niche perfume market. The investment marks a significant step for Vyrao as it prepares for expansive growth.
Founded by Yasmin Sewell, a former fashion buyer known for her tenure at top retailers such as Browns and Liberty, Vyrao has successfully raised capital through its second funding round. This latest round saw participation from Manzanita Capital—associated with Gap founder Bill Fisher—and Estée Lauder’s New Incubation Ventures, which was part of Vyrao’s seed funding in 2022. Interestingly, this investment round is notable as it is the first time all three firms have jointly participated.
Vyrao has made a name for itself with its wellness-centric approach to fragrance. The brand is distinctively marketed under the premise of “high vibrational scents” that promote joy and enhance soul health. Each of its fragrances, boasting names like “Witchy Woo” and “I Am Verdant,” is designed not just to smell good but to provide an emotional uplift enhanced by the inclusion of crystals believed to have spiritual properties.
Cori Aleardi, founding partner at Elevate Beauty—the growth investment fund by L Catterton—indicated that Vyrao fulfills key criteria for investment, particularly in terms of price positioning within the premium market and its broad distribution network. With a price point of $120 for a 30ml bottle, Vyrao finds a sweet spot appealing to consumers willing to pay for premium products without venturing too far into luxury pricing. Its distribution includes well-known retailers such as Saks in the US, Mecca in Australia, and Liberty in the UK, which further enhances its visibility in a competitive marketplace.
Moreover, what sets Vyrao apart is its broad scent portfolio. The current lineup includes seven fragrances, allowing consumers to select multiple scents rather than relying on a singular “signature” fragrance. Aleardi highlighted the importance for brands to adapt to changing consumer preferences, noting that modern fragrance shopping often involves a collection rather than a single best seller.
This directional shift aligns perfectly with Vyrao’s vision. Sewell has expressed her philosophy that no one should be tethered to one distinctive fragrance, which has been a guiding principle in the creation of her brand.
The rise of Vyrao coincides with the larger trend towards wellness and self-care in the beauty sector. As consumers continue to seek products that support their holistic health, Vyrao’s integration of emotional and spiritual aspects into fragrance positions it as a unique player in the marketplace. Notably, Shana Randhava of Estée Lauder’s New Incubation Ventures remarked that Sewell’s skill in merging luxury, wellness, and scent sets Vyrao on a path to lead within this niche.
While the fragrance market experiences robust growth—recorded as the fastest-growing prestige beauty category in the US, with sales surging 12% in the first half of 2023—Vyrao is fully aware of the challenges that accompany such success. Competing brands in the niche perfumery space include notable indie labels such as DedCool and Phlur, which are also capitalizing on consumers looking for unique and personalized scent experiences.
The success of fragrance brands is not only reliant on appealing products but also on securing prime retail spaces. High-traffic locations such as Selfridges and Harrods serve as critical battlegrounds for visibility and sales. Direct-to-consumer strategies also prove essential for brands like Vyrao to protect their margins and collect valuable customer insights.
Vyrao currently generates about 40% of its sales online, but Sewell maintains that her vision does not center solely on being a direct-to-consumer brand. Leveraging her retail experience, she understands that a well-structured retail presence is vital for brand establishment and growth.
With the newly acquired funding, Vyrao is poised to amplify brand awareness, especially in the U.S., which is identified as a crucial market for expansion. The focus on robust training and enhanced marketing strategies underlines the brand’s commitment to educating consumers about the unique qualities that differentiate its offerings.
Reflecting on Vyrao’s growth trajectory, the brand faced early challenges such as consumers primarily purchasing sample sets rather than full bottles. However, this was transformed into a marketing advantage as satisfied customers returned, demonstrating a preference for a versatile collection of fragrances rather than a single product.
In conclusion, Vyrao’s strategy to intertwine luxury with wellness gives it a strong foothold in the competitive fragrance landscape. As the brand navigates its growth path following the L Catterton investment, it will be interesting to observe how it leverages this capital to enhance visibility and capture more market share, developing a loyal consumer base drawn by its unique offerings.
