Zirh International Distribution Expansion Targets 25 Countries
This article was originally published in The Rose Sheet
Executive Summary
Zirh Skin Nutrition plans to expand its international presence from a limited distribution in four countries to a global reach of more than 2,000 doors in 25 countries by the end of 2002, according to Exec VP-Sales & Marketing Brian Robinson
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Zirh Skin Nutrition plans to expand its international presence from a limited distribution in four countries to a global reach of more than 2,000 doors in 25 countries by the end of 2002, according to Exec VP-Sales & Marketing Brian Robinson. The New York City-based company has reached tentative agreements with multiple distributors to expand globally beginning in the first quarter, Robinson said. International expansion, which is primarily slated to begin in the first quarter, will include 300 doors in Italy, 180 outlets in France, 100 stores in Norway and 105 doors in South Africa, as well as locations in Russia and Brazil. Currently, Zirh's international presence includes limited distribution in Canada, England, Australia, New Zealand and Korea. Zirh is making an aggressive push into the global arena to take advantage of less developed markets for men's products, Robinson said, noting "continuing indications are that men's treatment is increasing in importance and visibility worldwide, most specifically in Northern and Western Europe." "In the U.S, we are seeing the results of the men's skin care market coming to fruition now," he explained. "Internationally, we wanted to enter those markets now so we could be a leader." To promote its skin care stable worldwide, Zirh plans to rely primarily on extensive sampling. The firm aims to distribute "significantly" more samples than competitors in key markets, and international distributors will "over-invest" in sampling and training as well. For example, in Italy alone, Zirh intends to distribute more than 300,000 samples, Robinson said. In addition, as part of its global marketing initiative, the company will employ a "celebrity-driven marketing approach using international and local celebrities and sports figures" to further promote the line. International expansion was outlined as a primary growth strategy for the brand by Shiseido when the Japanese beauty giant acquired a 58.3% stake in Zirh last year (1 (Also see "Zirh" - HBW Insight, 22 May, 2000.), In Brief). At the time, Shiseido said it would expand distribution to 40-60 countries by the end of 2002. Shiseido's financing has helped Zirh progress toward its goals by providing a staff dedicated to international growth, Robinson explained. Zirh also continues to build its availability in the U.S., the exec added. Currently sold in 450 U.S. stores, including Barneys, Saks Fifth Avenue, Bloomingdale's and Sephora, domestic distribution is expected to reach 700 doors by the end of 2002, Robinson said. One of the company's strongest retail accounts is Bloomingdale's, where the Zirh brand ranks number one in the men's fragrance department, according to the firm. As Zirh moves to expand its distribution, the company also is seeking prestige level licensing opportunities, Robinson said. The company plans to develop an entirely new men's skin care and fragrance brand under a "well-known" designer fashion label by fall 2002/spring 2003, he added. The firm introduced its premiere men's fragrance, Zirh, in September and launched a new sun care line in May (2, p. 8). The company is rapidly building its portfolio, aiming to double its offerings to 29 SKUs by the end of the year. In addition to Zirh's first ad campaign, which debuted in August and will run through the end of the year, the company is promoting the brand through the Twentieth Century Fox movie "Joe Somebody" starring Tim Allen, which opens Dec. 21. In the film, Allen gives himself a makeover using a room full of Zirh skin care products, as he tries to transform himself into a "somebody" after suffering public humiliation at the hands of an office bully. Zirh has teamed up with Twentieth Century Fox and Bloomingdale's to create a "Be Somebody" promotion. Exclusively at Bloomingdale's, Zirh will give away a grooming kit featuring travel-size razor, clippers, mirror and nail file with a purchase of $50 or more. The promotion will run from Dec. 1-Jan. 15 and will be supported with full-page print ads in December issues of FHM and Interview. |