MILAN — Salvatore Ferragamo SpA, mum or dad firm of the Salvatore Ferragamo Group, and Inter Parfums Inc. have signed a worldwide licensing settlement for the manufacturing and distribution of Ferragamo branded perfumes.
According to an announcement launched on Wednesday, the settlement will probably be efficient from October and can final for an preliminary time period of 10 years.
The deal marks a turning level for Ferragamo’s magnificence enterprise as its perfume division had been managed in-house for the final twenty years.
To make sure the continuity of the Made in Italy manufacturing and the best stage of synergies with the style home, Inter Parfums will function via an entirely owned firm primarily based in Florence.
“Inter Parfums’ nice competence and acknowledged professionalism make it the perfect companion to proceed to develop the strong values of our model in addition to to take care of the ‘Italian-ness’ of the manufacturing,” stated Leonardo Ferragamo, chairman of the Salvatore Ferragamo firm, including that the companion’s “certified business power can even guarantee a brand new enhance to the enterprise of our fragrances, which will probably be distributed via a rigorously chosen gross sales community.”
Inter Parfums Inc. chairman and chief govt officer Jean Madar outlined the label as “one of the vital iconic and well-known manufacturers within the luxurious section” and underscored that the addition to the corporate’s portfolio “represents a terrific alternative to additional develop our enterprise within the vogue and luxurious section.”
Inter Parfums’ perfume licenses embody Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Moncler, Montblanc, Paul Smith, Repetto, S.T. Dupont and Van Cleef & Arpels. The group additionally owns Lanvin fragrances and the Rochas model.
As reported, Salvatore Ferragamo and Inter Parfums stated they have been in unique negotiations for the license final month.
Following the announcement, a bunch of Salvatore Ferragamo staff expressed opposition to the deal in a one-hour sit-in in entrance of the corporate’s Osmannoro plant, exterior Florence. At the time, commerce unions underscored that the doable operation would have implicated that “the rights and jobs of 40 staff are in danger” and requested the corporate to interrupt negotiations.
In response, the style home pressured that the deal was “aimed toward making certain an additional enhance to the fragrance enterprise and the continuity of the Made in Italy manufacturing” and that it was “able to [take action] to supply the very best options for staff.”
The licensing cope with Inter Parfums isn’t the primary within the historical past for the Ferragamo perfume enterprise.
In 1994, the model signed an settlement for the event and manufacturing of its first perfume with Eurocos Cosmetics, a Germany-based division of Procter & Gamble.
After discontinuing the cope with nothing having been produced, in March 1997 Ferragamo and Bulgari shaped a three way partnership — every taking a 50 p.c stake — referred to as Ferragamo Parfums SA. At the time, Bulgari was given administration duty underneath a service contract.
After a four-year-long partnership, the 2 events amicably dissolved the joint-venture contract, with Ferragamo buying from Bulgari its 50 p.c stake for an undisclosed sum. The Ferragamo Parfums division was then established in 2001 to regulate the whole perfume enterprise in-house, from the event of the scent to the distribution.
In the primary quarter of 2021, gross sales of Salvatore Ferragamo fragrances have been up 5.3 p.c to 10.5 million euros. Overall, within the three months ended March 31, the corporate’s revenues rose 10.3 p.c to 244.6 million euros in contrast with 222 million euros in the identical interval final 12 months.
