Introduction: Perfumes Y Diseño Group Americas Sales Director Esther Jiménez discusses the company’s proactive approach to crisis, the importance of partnership and the key to building a qualitative brand portfolio with Hannah Tan-Gillies.
There has been much talk recently about the surging popularity of niche fragrances in the post-pandemic landscape and Spanish fragrance distributor, Perfumes y Diseño (PYD) Group, is capitalising on this startling trajectory.
Amid the uncertainty of the COVID-19 crisis, PYD Group remained agile and adaptable while many peers opted for a much more cautious approach. During the last two and a half years, PYD Group embraced digital innovation, implemented online training courses, deepened its partnerships with brands and retailers and launched several memorable campaigns.
Today, PYD Group is reaping the rewards, recording +16% sales growth versus pre-pandemic 2019. PYD USA, the company’s Caribbean subsidiary, outperformed other regions recording a +80% sales performance versus 2019.
PYD Group Americas Sales Director Esther Jiménez comments, “We had a very hard time during the total closure of the markets, but we did not stand still. We remained in constant contact with our distributors and retailers, giving them the support they needed.
“We did online training all over the world, provided marketing ideas to create new digital business and helped our clients develop their social media platforms and alternative sales channels. We quickly adapted to the new reality and found ways to remain active. As soon as the markets started reopening, we launched the ‘Tous Love Me’ campaign, while assuming that there were risks involved. Luckily this campaign had extraordinary results.”
After being delayed in 2020, PYD launched the Tous Love Me campaign with Aelia Duty Free in 2021. In Q4 of that year, it introduced the Tous LoveMe The Onyx Parfum in Americas travel retail. The major campaign rolled-out with Attenza Duty Free, Duty Free Americas, Top Brands, London Supply, Dufry and Aelia Duty Free.
The company also launched the first Scalpers fragrance in 2021. The Club fragrance was celebrated with a Father’s Day campaign that helped the brand generated the second highest sell-out in Spain. In 2022, PYD launched Scalpers’s second fragrance, The Boxing Club, with a special activation at Adolfo Suárez Madrid–Barajas Airport. At the end of 2021, PYD launched Nightology into global travel retail.
In the first half of 2022, PYD launched the Halloween Blossom, Tous Man Chill and Tous Your Power fragrances in domestic markets with a travel retail roll-out to follow.
“While most of the competition was still waiting to see how the situation would evolve, we were tremendously proactive,” Jiménez recalls. “2021 was the best year in history for PYD Group, with a +16% increase in sales compared to 2019. The company experienced unanimous growth across all its brands and subsidiaries worldwide, especially the Caribbean subsidiary — PYD USA — which registered a growth of +80% compared to 2019.”
This performance was driven by PYD Group’s personalised approach to its brand and retailer partners. Jiménez claims. “What differentiates us from our competitors is the special care and personalised service that we give to the brands for their development. One of our main objectives today is to establish ourselves as one of the main distributors in the Americas.”
With accelerating recovery taking place, PYD Group is looking towards growth with a special focus on the Americas and Caribbean.
“We will continue to strengthen PYD Group’s global presence, particularly in the Americas and the Caribbean, by incorporating our brands into markets where they are not yet present,” Jiménez says.
“We will pursue aggressive commercial policies aimed at gaining market share and maintain close ties with the key players in each market. We are also very focused on enhancing our distribution function by selectively expanding our brand portfolio.”
Jiménez says that travel retail plays a key role in this strategy. “Like all distribution channels, travel retail is very important for PYD Group. We have not stopped investing in it and seized opportunities that others passed up during the uncertainty of COVID.
“We will continue to do this with all our brands, both owned and distributed. Our priority is to maximise the potential that our brands have in travel retail. Our goal is to provide excellence in terms of travel retail service and distribution to any brand in our portfolio.”
Founded in 1998, PYD Group has been steadily growing its portfolio of owned and distributed brands. It kickstarted 2022 with the acquisition of the Caribbean distribution rights for the Perry Ellis fragrance brand. Other PYD-owned brands include Starck Paris, Tous Perfumes, Halloween Perfumes, Nightology, El Ganso Perfumes and Scalpers.
It is also the distributor of the Goutal Paris, Juliette Has a Gun, Moschino, Missoni and Versace fragrances in selected markets. “Our goal is not to simply collect brands,” Jiménez says. “We are being strategic with our selections and are focused on providing the brands on our roster with proper service. We want to ensure growth through sales and a great positioning within different markets.
“Our main objective is to give exceptional work to all brands that trust us as distributors,” she adds. “We will continue to grow our portfolio but only with brands where we can ensure the best results.”
Niche fragrances have emerged as one of the biggest sub-categories in the beauty industry post-COVID. Commenting on the different post-pandemic trends within the fragrance category, Jiménez sasys, “There are several global trends in the beauty industry influencing the fragrance business. These is growing consumer interest in sustainable and environmentally-friendly products; the increase in the consumption of niche or luxury fragrances; and changes in purchasing and consumption habits.”
The pandemic revealed a new retail landscape in which digital is king and brands, distributors and retailers need to evolve to survive. “We need to offer reasons for customers to shop in travel retail that go beyond just prices and promotions. This is especially true because local markets are very price-oriented, particularly with online sales. Travel retail needs to offer new ways for consumers to interact with brands and provide a differentiated experience.
“We live in a digital world, and the pandemic has forced us to rethink everything. A classic presentation of a fragrance with a tester at the point of sale is not the best tool anymore. We must connect with consumers in this new digital environment, which is a huge challenge since shoppers cannot smell through a screen. Still, this new frontier is both the present and the future, and we need to continue innovating to be part of it.”
