Euromonitor Worldwide is happy to current an interview with Luciano Bertinelli, the CEO at Ferragamo Parfums, a part of the luxurious specialist firm Salvatore Ferragamo S.p.A, primarily based in Italy. The CEO discusses prevailing matters in fragrances, together with the power of the area of interest segment and the need for personalised offers, as effectively because the rise of stand-alone stores amongst magnificence players, topics of curiosity to trade observers and fragrance players, as the aggressive panorama bears better resemblance to a battleground for market share and too few consumers, typically finicky on scent.
Niche perfumeries have been on the rise lately, probably even eroding among the market share from international prestige brands comparable to Salvatore Ferragamo. Can international fragrance brands compete with the niche segment with unique collections?
The area of interest perfumeries have undergone an necessary and interesting improvement and progress over the previous years, becoming virtually a trend. We don’t consider them a competitor but an opportunity for haut de gamme merchandise and unique collections, like our Tuscan Soul and Tuscan Scent Quintessential Collections, which are only distributed in our Salvatore Ferragamo Boutiques and selected prime department shops.
Do you imagine fragrance personalisation is the brand new method forward in the business to compete in a saturated market?
I think that fragrance personalisation, in terms of creating a person scent, may very well be an additional way to compete in a saturated market. In truth, these days customers increasingly respect and seek exclusive, distinctive and made to measure products. Having stated that, I guess that the eventual advantages in terms of further sales wouldn’t be compensated sufficient by the complex enterprise model this device would require. On the contrary, I consider personalisation associated to modern aesthetic elements of the flacon and packaging a robust way to differentiate a fragrance in a saturated market. Also to leverage on market opportunities like local festivities helps to face out. On the occasion of the Salvatore Ferragamo’s twentieth Anniversary Celebration in China, for instance, we launched a limited version of Signorina Eau de Parfum, completely obtainable in our boutiques in China.
Intellectual property safety is lacking in fragrances. Do you assume this could benefit the industry if it was implemented? How?
To repeat a perfume may be very tough as it’s a multifaceted olfactive creation with an extended means of improvement and technical and chemical know-how. In fact the business may have some benefits from intellectual property safety, since each perfume could be really distinctive. In practice, managing the entire process linked to it could be very complex and would have extra prices than benefits.
Some international brands resembling Burberry and Christian Dior now function their own stand-alone stores merging their trend business too. Do you believe this supplies a aggressive benefit within the retail environment?
It can be an extraordinary competitive advantage from an image viewpoint and an awesome opportunity to draw totally different customers who will not be only considering fragrances. This is a crucial strategic resolution to take, considering additionally the high investment of stand-alone stores. We at Salvatore Ferragamo have started to work on this path with dedicated model counters in high department shops, joining three product categories: fragrances, eyewear and timepieces. For now we opened the primary ones in China and Italy and are contemplating to develop this enterprise model to other nations. That is a primary step in that direction with a limited funding to raised evaluate the real business opportunity.
Online retailing within the magnificence business is turn into well-liked with customers. Fragrances, nevertheless, typically rely on the patron smelling the product before making a purchase order resolution. Do you see on-line activity turning into a major supply of sales in fragrances, particularly given the extra digitally-engaged younger shoppers?
Compared to different style equipment or magnificence products, the first fragrance buy usually relies on the buyer smelling the product. I think that more than another product you use or put on, a perfume expresses and underlines your personality and due to this fact the selection is a person one. After all consumers approach a fragrance because of the model, the interesting communication and aspect, but in the long run they purchase it as a result of they like the odor. On-line procuring becomes a significant source of gross sales when it come to the re-purchase of fragrances.
What are the rising challenges in today’s fragrances market?
In a very competitive state of affairs, distribution and visibility are our fundamental challenge, for both off and online channels. Today, customers are frequent travellers and purchasing is now not only home. Subsequently it can be crucial to gain not solely a neighborhood however global coherent visibility and be aware of excessive and low journey intervals.
As for Salvatore Ferragamo, any new launches in the pipeline, or maybe current launches (reminiscent of Signorina Assortment or Tuscan Scent) that you desire to to debate? Why do they stand out out there?
The worldwide rollout of Signorina Misteriosa just started. It enlarges the Signorina franchise. Signorina is our most iconic product enjoying major success thanks additionally to the quality and strong hyperlink to the Salvatore Ferragamo Maison. In the second part of the year we’ll launch a brand new men’s line deeply linked to the DNA of our brand.