FRANCE. Couture house Lanvin is to exit the fragrance and watch business as part of a radical restructure that will see it refocus on its core, luxury ready-to-wear fashion. Consequently, it will pull out of the watches business it entered just two years ago, and is seeking a licensee for its fragrances.
Citing a “deteriorated economic situation” – last year the company registered a loss of €22 million on sales of €80 million – Lanvin will seek to cut 65 of its 300 jobs worldwide. Around 46 could go in France, where the house employs 207 people. The aim is to cut costs by 25%.
Lanvin, founded in 1889, is France’s oldest couture house. It is majority-owned by Taiwanese publisher Shaw-Lan Wang, who purchased it (via an investor group called Harmonie) from the L’Oréal Group in summer 2001.
Several scents have since been launched by the company, including Eclat d’Arpège and Lanvin Vetyver (The Moodie Report.com, 3 November 2003). Wella and Procter & Gamble are reportedly among the parties which could be interested in licensing the Lanvin name.
“Despite the overall group loss, commercially the fragrance division performed very well last year, thanks largely to the successful launch of Eclat d’Arpège,” a Lanvin spokesperson told The Moodie Report. “It’s a thriving business, and that’s a big positive for whoever takes over the license.”
