MILAN — “I would really like that in 5 years’ time another person, from one other firm, sits right here and cites Desire Fragrances as [an example] for the outcomes to attain,” mentioned Patrizio Stella.
The magnificence trade veteran was solely appointed chief govt officer of the perfume producer in September, however he has already outlined bold, long-term plans to speed up the expansion of the agency by increasing its construction, portfolio and distribution footprint.
With a level in political sciences, Stella has labored throughout many roles within the trade, beginning his managerial profession in Procter & Gamble Italia, earlier than being named fragrance and cosmetics worldwide managing director of Bulgari Parfums et Cosmétiques and successively changing into European CEO of Parfums Christian Dior and CEO and nation common supervisor of LVMH Beauty Italia. In 2016, he cofounded and helmed Brands Beyond Beauty Group, launching, constructing and repositioning Chopard Parfums, Philipp Plein Parfums and Elie Saab Parfums.
Leaving govt roles at Brands Beyond Beauty behind, Stella is on a repositioning mission for Desire Fragrances, too, as he goals to raise the Luxembourg-based group that has outposts in Varese, Italy; Switzerland; the Netherlands; the U.Ok., and within the U.S.
“I assumed there was a really attention-grabbing alternative available in the market for us,” mentioned Stella about becoming a member of the worldwide agency. “I’ve appreciated a few of the pillars of this firm, that are the good creativity, robust capability in creating high quality merchandise and on the identical time the openness to vary and develop which seemed very attention-grabbing. The mixture of those components satisfied me this was the correct problem to [pursue].”
The agency has greater than 30 years of experience within the design, manufacturing, advertising and marketing and distribution of fragrances and bathtub and physique merchandise underneath license for corporations together with Liu Jo, Sergio Tacchini, Alfa Romeo, Tonino Lamborghini, and, most just lately, Head, which includes the eponymous American tennis racket model and Austrian ski-equipment producer Tyrolia, amongst others.
Liu Jo’s perfumed physique lotion and perfume mist.
Courtesy of Desire Fragrances
This portfolio represents a life-style division that Stella intends not solely to consolidate however flank with two new enterprise areas, one grouping status and luxurious manufacturers and the opposite devoted to proprietary labels.
“The Prestige and Luxury division is the yet another affiliated with my previous experiences and is the correct completion of the life-style one. It implies a unique group and geographical enlargement, with a higher-positioned distribution and investments in communication. But the concept is that we’ll be within the situation to announce some partnerships on this section already in 2023,” teased Stella.
As for the proprietary manufacturers, the manager underscored that Desire Fragrances already has a small model for children named Petite Beauté, which will likely be additional developed and flanked with acquisitions that might even transcend fragrances.
“In common, we’re considering of evolving this in a magnificence firm, so we are going to progressively look additionally to selective make-up manufacturers and, in the future, to skincare labels,” mentioned Stella, underscoring that this wider strategy might have an effect on each licenses and proprietary manufacturers.
In gentle of this technique, Stella envisions reaching 200 million euros in revenues in 5 years. The govt didn’t disclose 2021 gross sales numbers in complete, however mentioned the corporate’s merchandise generated 70 million euros in retail gross sales final yr. The CEO additionally expects Desire Fragrances to report double-digit development in revenues this years and revealed that 2023 will already mark “an essential turnaround” for the corporate.
This will likely be primarily propelled by the launch of latest fragrances throughout present manufacturers, ranging from Liu Jo — essentially the most in-demand label within the portfolio — and Head, for which key fragrances will likely be launched subsequent month and rolled out globally within the first quarter of 2023. Argentinian tennis participant Diego Schwartzman has additionally been tapped because the face of the promoting marketing campaign.
Tennis participant Diego Schwartzman posing with the Head Fire perfume bottle.
Alessandro Scattolini/Courtesy of Desire Fragrances
Asked concerning the scouting course of for potential manufacturers so as to add to the portfolio, Stella mentioned to look for companions “that need to leverage magnificence not simply as a mere extension of gross sales generated of their core enterprise however as a possibility to mutually affect each other.”
“It would possibly sound like rhetoric, however in my private expertise, when this [synergy] occurred, that marked the success of the sweetness line and the true improvement of the core enterprise,” he mentioned. More pragmatically, the CEO famous that for the Prestige and Luxury division the corporate’s “pure targets are manufacturers that of their core enterprise generate between 100 million euros and 600 million euros in revenues and need to be current or enhance their presence within the magnificence trade.”
The portfolio’s enlargement will inevitably affect distribution, primarily based on a mixture of distributors and direct contacts with retailers and malls. The firm works with round 15,000 doorways globally overlaying the totally different targets and positioning of its manufacturers, however goals to extend its footprint to succeed in 25,000 doorways. As for geographies, Desire Fragrances’ essential markets are Europe and the U.S., accounting for 45 and 30 % out of complete gross sales, respectively. The remaining revenues are primarily generated within the Middle East and Asia, the place Stella goals to additional broaden shifting ahead, additionally contemplating the addition of status manufacturers that might finest resonate in these areas.
At the identical time, investments in advertising and marketing will intention to have interaction youthful generations with a communication and brand-building increase on social media and on-line platforms. Collaborating with celebrities and leveraging the visibility and engagement throughout particular occasions, particularly sports-wise, will add to the technique.
Courtesy of Desire Fragrances
As for the company construction, new hires will additional assist spur development. Citing a lesson realized in former experiences, the manager added that “for how apparent it would sound, it’s additionally key to encompass ourselves with folks of high quality, which is able to encourage different folks to be concerned in a undertaking of this type, too.”
“People of worth entice folks of worth.…And I do know for certain that [having just] a person alone on the high doesn’t work in politics nor in enterprise. Those days are gone,” concluded Stella.