Inter Parfums Premiere H&BA Line Intimate Expected To Fuel Mass Sales
This article was originally published in The Rose Sheet
Executive Summary
Inter Parfums' Intimate H&BA line is expected to boost sales in the company's mass market division after it is rolled out this month, CEO Jean Madar said.
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Inter Parfums' Intimate H&BA line is expected to boost sales in the company's mass market division after it is rolled out this month, CEO Jean Madar said. While Inter Parfums' net sales jumped 40% in the first quarter, sales for the company's mass market division, which includes the Aziza cosmetics brand, were flat. Mass market sales in 2000 were up 17%. The 18-SKU line of shampoos, conditioners, mousses and body lotions will roll out to 3,000 mass stores, including 1,700 Dollar Stores and 1,100 Consolidated doors nationwide. Intimate, a trademarked name purchased from Revlon in 1994, will be targeted to older, budget-oriented consumers; 15 oz.-20 oz. products will be line-priced between $1-$2. The launch will be supported in-store with co-op advertising and sampling. The collection will be expanded later with deodorants and hair sprays, Madar noted. The exec has high expectations for Intimate, predicting the brand will follow in the footsteps of Inter Parfums' Aziza, which is expected to become a $10 mil. brand. Available in 12,000 value-priced stores, Aziza brand sales increased four-fold in 2000, Madar said. The Aziza brand was purchased from Unilever in 1995. The firm's prestige fragrance sector, comprising 65% of the business, is on a steady growth track led by fragrance launches under the Burberry, Paul Smith and Christian Lacroix brands, the firm said. The Paul Smith duo, which made its initial debut in the U.S. last fall, has generated sales 50% higher than projected, Madar said. Paul Smith fragrances were expected to achieve $15 mil.-$20 mil. worldwide when the licensing deal was penned in 1998 (1 (Also see "Paul Smith Fragrances Bowing In 2000 Under Inter Parfums Licensing Deal" - HBW Insight, 21 Dec, 1998.)). The success of the Paul Smith fragrance line has encouraged Inter Parfums to create a hair care line under the designer name, which is slated to bow in mid-2002. The seven- to 10-SKU collection of hair care products will not be an extension of the fragrance line, Madar emphasized, but rather a new direction for the U.K. brand. Products will be displayed apart from to the fragrances at department stores and in Paul Smith boutiques. Skin care and cosmetics are additional categories being considered for the brand, the exec added. The Burberry Touch fragrance brand, which generated an 80% sales increase in the first quarter, will be expanded with a seven-SKU Burberry Touch bath line in June and a collection of alcohol-free skin care products for babies in the first quarter 2002 (2 (Also see "Burberry Touch Bath Line Expands "Natural" Positioning Of Fragrance Duo" - HBW Insight, 12 Feb, 2001.)). Madar attributes Inter Parfums' ability to gain market share in the prestige sector to its diverse portfolio of brands that do not cannibalize one another. Image revamps of brands such as the Burberry fashion line also have been a contributing factor, he added. A similar boost from the fashion industry is expected to create buzz around the upcoming launch of the Celine men's and women's fragrance duo. Building on revitalization efforts of designer Michael Kors, the Celine fragrance collection will bow in Europe and the Middle East in October, followed by a U.S. debut in June 2002. Additional launches include a Molyneux Modern Quartz men's fragrance that will join its female counterpart by the end of 2001 and a Christian Lacroix fragrance duo slated to bow in 2002. Lacroix Eau Florale, which recently debuted in Europe and launched stateside in February at Saks Fifth Avenue, has done "extremely well," according to Madar. The scent has generated sales three times those of the original Lacroix fragrance, he noted. The launch of the FuBu urban apparel brand's premiere fragrance duo and ancillary collection has not been ruled out for this year. The firm expects to announce FuBu's official launch date when it releases second quarter results. Inter Parfums signed a licensing agreement with FuBu in July (3 (Also see "Inter Parfums" - HBW Insight, 10 Jul, 2000.)). Inter Parfums also is considering a re-launch of its Jordache color cosmetics kits in 2002. Developed into a full line of fragrances and deodorants during a 12-year licensing agreement, Jordache has been "increasing nicely," Madar said. Inter Parfums expects second quarter sales will grow approximately 15% to about $28 mil. Net income is expected to increase 20% to approximately $1.8 mil. |