Salvatore Ferragamo is seeking to enhance its perfume enterprise. (Photo by Budrul Chukrut/SOPA … [+] Images/LightRocket by way of Getty Images)
SOPA Images/LightRocket by way of Getty Images
Italian luxurious home Salvatore Ferragamo is in unique negotiations with New York-based Inter Parfums Inc for its perfume enterprise which, if profitable, will see the manufacture and distribution of the Florentine label’s scents moved out of home for the primary time in about 20 years.
According to Milan-listed Salvatore Ferragamo, the construction of any worldwide, unique deal must “enhance” the perfume enterprise whereas additionally preserving the model’s heritage together with selective retail distribution worldwide and a ‘Made in Italy’ positioning.
Salvatore Ferragamo is greatest recognized for its sneakers, and the model trades on its Italian-made leather-based craftsmanship. Shoes accounted for 41% of gross sales in 2020 and leather-based items nudged forward with simply over 42%. Fragrances—made by a separate wholly-owned division Ferragamo Parfums—contributed 4.6% of whole gross sales, down from 6.4% in 2019.
Fragrance gross sales have been halved final yr
The Covid-19 pandemic hit Ferragamo’s perfumes a lot more durable than different merchandise segments, not helped by the postponement of latest launches. The class’s gross sales have been halved in 2020 to €41.8 million and this relegated it to fifth place, overtaken by equipment and attire. This was a turning level, particularly as pandemic perfume gross sales normally have proved resilient.
Moves to combine the perfume division totally into the group, to save lots of on sources, started final yr and it’s understood that talks with Inter Parfums to outsource manufacturing began quickly afterwards. Luciano Bertinelli the CEO of Ferragamo Parfums for over 18 years left the corporate in January, and by April the enterprise had been formally merged into the dad or mum.
The enterprise unit, as it’s now, is run by former Ferragamo Parfums chief business officer Teodora Sevastakieva. When contacted by Forbes.com, Ferragamo Group declined to touch upon whether or not the unit could be disbanded or downsized as soon as a deal is struck.
Interparfums co-founder Jean Madar: “Adding valued manufacturers to our portfolio is a high company … [+] precedence.” (Photo by Richard Bord/Getty Images)
Inter Parfums, based in 1982, has loads of perfume know-how throughout many value positions. It makes perfumes and cosmetics below unique worldwide licenses for numerous manufacturers from the extra accessible like Abercrombie & Fitch, Coach and Guess
, to high-end luxurious together with Dunhill, Jimmy Choo, Karl Lagerfeld, and Van Cleef & Arpels. Inter Parfums can also be the proprietor of Lanvin fragrances and the Rochas model.
Sales at Inter Parfums are additionally using excessive—in sharp distinction to Ferragamo Parfums. First quarter 2021 income was simply shy of $200 million, up considerably on final yr, but additionally 11% forward of the identical pre-pandemic interval in 2019. The largest surges got here from North America and Asia, up 56% and 34%, respectively. The firm says that enterprise has been particularly sturdy in areas the place lockdowns have been lifted and shops have reopened.
In mid-May, Jean Madar the CEO of Inter Parfums, additionally made it clear that the corporate was out there for extra licences with out naming names. He stated: “To speed up our tempo of progress, we now have been actively pursuing potential license agreements with manufacturers who’re in search of a brand new associate to leap begin their perfume franchise. While there may be no assurance that any agreements shall be finalized, including valued manufacturers to our portfolio is a high company precedence.”