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“We are trying to reinvent and re-position ourselves at a high-end level. And”¦we want to be considered much more international.“ |
Luciano Bertinelli CEO Ferragamo Parfums |
Asia, and especially the Chinese market, continues to be a huge focus for the Ferragamo group. “Asia is still big; it’s practically a planet,” Ferragamo Parfums CEO Luciano Bertinelli told The Moodie Report, at last month’s TFWA Asia Pacific show in Singapore. “China for sure is the market that is growing double digits, but we also continue to see great results in Japan. We recently held a huge launch there, to introduce our new Signorina edt, to [further] boost the market.”
For the second year, Ferragamo has committed to TV advertising in China. “We continue to invest there, and consider TV advertising to be strategically important,” noted Bertinelli. “The other key market in Asia is, of course, Korea.”
Bertinelli confirmed that the Korean market was still positive. “Duty free is growing faster than domestic, where it’s not so easy,” he explained. “But we feel confident. I was in Seoul recently, to visit and to talk with our partners. We are still optimistic. We don’t really see any clouds on our heads in the sky for 2013.
“But 2013 is not like 2012,” Bertinelli continued. “It is not quite so easy”¦The economy is good but we are perhaps being a bit more conservative. Everything continues to grow, but at a different speed.”
Meanwhile, within the US, Ferragamo recently entered into an exclusive, multi-year agreement with Beauté Prestige International (BPI) USA, the US division of the Paris-based luxury fragrance company. The latter began handling the sales, marketing and distribution of Ferragamo Parfums fragrances within the US in April.
“This new deal is important for us,” acknowledged Bertinelli. “We decided to try things with a new partner. Why BPI? They have good marketing, good quality, they treat the brands at the right level, and we think it’s a good marriage between us. We are still in the honeymoon phase – but I hope it’s going to be a long honeymoon.”
Given the timing of the new deal, Bertinelli said it was too early to give any meaningful results. “But I do want to highlight our recent exclusive launch at Macy’s with our new men’s fragrance Acqua Essenziale,” he commented. “We were ranked nine at Macy’s (around 430 doors). That is a very good result for a brand like us – and the first time we achieved a top 10 ranking.”
Both Acqua Essenziale, and the new Signorina franchise, herald something of a new era for Ferragamo Parfums. “Both fragrances are very qualitative,” Bertinelli explained. “We are trying to reinvent and re-position ourselves at a high-end level. And previously, we were perhaps more Japanese-oriented. Now we want to be considered much more international.”
The original, flagship Signorina edp made its debut in February 2012, and was followed up this year with the edt version. “There will be a new, limited edition of Signorina available from October,” Bertinelli revealed, “to build up last-quarter sales and to catch the Christmas spend.”
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Ferragamo Parfums’ Acqua Essenziale was launched in February 2013 |
Ferragamo is also responsible for the Ungaro fragrance licence. The last big launch was L’Amour Fou, which was previewed in Cannes in 2011. “Ungaro is not an international brand, so you can’t be present with it in 90 countries, like you can with Ferragamo,” Bertinelli noted. “But it is available in certain European countries, such as Italy and France, and in the Middle East and Latin America. We also have some doors in the US, and a few in Asia.”
In terms of distribution generally, Ferragamo is managing directly more and more of its markets. “Where possible we are opening more local offices,” confirmed Bertinelli, “in order to manage things together with our local partner. It’s a good way to work.”
The fragrance division, which accounted for 6.2% of total Ferragamo group sales in 2012, has no desire to diversify into the cosmetics category, despite its popularity among Asian consumers – a key demographic for the brand.
“It is certainly not in our short-term strategy,” Bertinelli stated. “We have only just started in the fragrance business, so our share is still small and we think there is plenty of potential to grow, so I don’t want to even think about entering into make-up,” he continued. “It’s a completely different business, and a huge, long-term investment.
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Ferragamo has extended its Signorina flagship feminine fragrance with an edt collection |
“In the fragrance business, if you have fix or six references you can work for 10 years. Our aim is to really maintain the quality, build awareness and grow the brand long-term.”
Bertinelli emphasised that there were markets where Ferragamo had barely scratched the surface – and therefore still held great untapped potential. “We have spoken about the importance of Asia, but take also Germany, where we have only just begun, or Brazil. There are huge markets where we can fish, and we have only just discovered our nets,” he concluded with a smile.
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