Luxury leads the way for P&G Prestige – 21/11/06

The One: the new luxury fragrance from Dolce & Gabbana

INTERNATIONAL. P&G Prestige remains fully committed to developing its presence and improving its performance in the travel retail channel, despite the latest round of difficulties sparked by liquid bans and transit confiscations.

“Our travel retail business year-to-date has been quite good, although of course it could have been better,” Director Asia-Pacific & Global Travel Retail Hans Wohmann told The Moodie Report.

“Certain external factors, such as the summer’s liquid ban, caused a few headaches, but the market in general is still developing very well, with many positive trends. There are always difficulties of one sort or another to overcome, and overall we are very pleased with our progress in 2006.”

We have a great pipeline of initiatives, and see a lot of room to grow the base business.
HANS WOHMANN, P&G PRESTIGE

Wohmann cited new developments such as the stunning Bangkok Suvarnabhumi Airport, the 2008 opening of Heathrow terminal five, and a variety of imminent key concession changes at existing locations, as among the positive factors for the future.

“We see big airports worldwide as key development areas for us,” Wohmann explained. “And while we are already very strong in certain markets, such as western Europe and the US, there is still plenty of potential for growth, particularly in developing areas such as Eastern Europe, China and Russia.”

But the company will draw on its strengths and synergies with local markets too. “We have an integrated plan for developing travel retail and domestic together,” explained Global Prestige Products Market Development Operations Carolyn Tastad.

The renewal of the Gucci fragrance licence has provided another boost for P&G Prestige

“There is so much scope for each [channel] to learn from the other. The two are so different they can’t really be compared, but each can teach the other different things.”

She added: “What has become increasingly obvious is that travel retail is now a great window for the world of luxury. The channel does a great job in many locations, and the business is very exciting.”

But it needs the right brands to back it up, something P&G Prestige has no shortage off. Wohmann singled out the group’s recent renewal of the Gucci fragrance license, and the high-profile launch of The One – the first fragrance from Dolce & Gabbana since P&G took over the licence from EuroItalia – as notable recent brand developments.

“The launch of The One has been explosive,” said Wohmann. “And it has received great support from our retail partners.”

The fragrance signifies a new chapter for the Italian fashion and fragrance house, one that embodies the real luxury of the Dolce & Gabbana brand.

“We have a great pipeline of initiatives, and see a lot of room to grow the base business,” Wohmann added.

We have an integrated plan for developing travel retail and domestic together. There is so much scope for each [channel] to learn from the other.
CAROLYN TASTAD, P&G PRESTIGE

“Such a premium positioning is perfect for the travel retail universe, which is itself so focused on luxury. Crucially, we will look to maintain our excellent retail executions.”

Which means strengthening its industry partnerships, and using trade shows like Cannes to update and inform its retail clients.

“The whole world comes here, so Cannes provides us with an opportunity to meet a broader group of people, and to showcase many new projects in an appropriate environment,” explained Tastad. “It also provides an ideal opportunity to implement certain high-level strategic discussions.”

Following the acquisition of the Wella Group’s Cosmopolitan Cosmetics division, and the subsequent reorganisation, P&G Prestige is now well placed to develop its vast and varied product portfolio.

Creating in-store impact and excitement is a key objective for P&G Prestige

“We see a tremendous opportunity to make the in-store environment more exciting,” concludes Wohmann. “Shoppers today are looking for new experiences, and great service, which is something travel retail can do really well.

“We now have a very strong selection of products, backed up by lots of energy and ideas. We want to bring that whole package to life in-store.”

MORE STORIES ON P&G PRESTIGE

P&G Prestige introduces new Baldessarini fragrance – 17/10/06

P&G Prestige rocks on with Valentino – 11/09/06

P&G Prestige unleashes the power of One – 06/09/06

P&G Prestige sparkles with new feminine fragrances – 21/08/06

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