Inter Parfums Aims To Double Lanvin Fragrance Sales In Three Years
This article was originally published in The Rose Sheet
Executive Summary
Inter Parfums expects sales of Lanvin fragrances to double over the next three years following the signing of a licensing agreement between the two firms announced June 15, CEO Jean Madar stated
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Inter Parfums expects sales of Lanvin fragrances to double over the next three years following the signing of a licensing agreement between the two firms announced June 15, CEO Jean Madar stated. The fashion brand's fragrance portfolio generated sales of $30 mil. in 2003, according to the exec, who noted Lanvin fragrances likely will comprise 15% of Inter Parfums' total business in the first 12 months of the agreement. The 15-year licensing deal grants Inter Parfums the rights to create, develop and distribute fragrances under the Lanvin brand. Effective July 1, the agreement requires an upfront licensing fee of $19.2 mil. and the purchase of existing inventory for $7.2 mil. In addition, Inter Parfums will pay advertising expenditures and royalties "in line with industry practice," according to the firm. Inter Parfums anticipates the first fragrance to launch under the agreement will be a women's scent that will debut at the end of 2005. As part of the company's strategy for the brand, Inter Parfums will aim to reinterpret and modernize one of Lanvin's classic fragrances for an upcoming launch, Madar added. Lanvin fragrances currently include classics such as Arpege , created in 1927, as well as more contemporary offerings, including Lanvin L'Homme , Eclat d'Arpege and Vetyver . Inter Parfums expects a reinvigoration of the Lanvin fragrance brand will attract a new audience to the portfolio; the company will particularly work to appeal to the brand's fashion following. In line with that effort, the fragrance manufacturer intends to implement a more "fashion forward" approach to creating and marketing Lanvin fragrances, according to Madar. The strategy is one that has worked well for the company's Burberry portfolio. Lanvin's existing department and specialty store distribution will remain unchanged under the agreement. The fragrances are distributed in approximately 350 doors in the U.S. and 3,000 worldwide. Fragrance distribution was recently scaled back after the fashion label was purchased from L'Oréal by a private investor group in 2001 to improve the brand's U.S. presence "qualitatively" (1 , p. 4). Lanvin will be the only "classic French perfume house" in Inter Parfums' portfolio, the company noted, adding the brand will therefore not directly compete with its other brands like Burberry, Paul Smith , Celine and Christian Lacroix . On top of signing a new license, Inter Parfums is preparing for the launch of Burberry Brit for Men , slated to bow in August. The men's fragrance will follow the successful launch of Burberry Brit for women, which was unveiled in the U.S. last year (2 (Also see "Burberry Brit Scent Positioned As Fragrance Icon Of Fashion Brand" - HBW Insight, 23 Jun, 2003.), p. 6). The scent is targeted to young men ages 20-40 who are familiar with the Burberry fashion brand, according to Madar. Inter Parfums anticipates the men's version will duplicate the strong sales of its female counterpart, which generated nearly $100 mil. worldwide at retail in the first 12 months on counter, Madar said. The company also is planning to launch a new Diane von Furstenberg color line called Color Assets . The range will be distributed through the HSN shopping network. Von Furstenberg currently markets a collection of clothing called Silk Assets through the home shopping network. Expected to debut around at the end of the year, Color Assets products will be sold as gift sets rather than as individual products, Madar noted. Although von Furstenberg "edited" the makeup collection, the range does not carry her name, according to Madar. Color Assets is distinct from the designer's existing prestige DVF cosmetics line, which is distributed through department stores such as Bloomingdale's and Macy's. The lines feature different products, color palettes and packaging, the exec said. DVF launched last year under a licensing agreement between the designer and Inter Parfums that was signed in June 2002 (3 (Also see "Burberry Brit Scent Positioned As Fragrance Icon Of Fashion Brand" - HBW Insight, 23 Jun, 2003.), p. 11 and 4 (Also see "Von Furstenberg Prestige Scent To Re-Establish Designer’s Beauty Business" - HBW Insight, 3 Jun, 2002.), p. 6). |