FLORENCE — Once dominated by commercial brand names like Versace, Dolce & Gabbana, Armani and Bulgari, the stagnant Italian beauty market has seen a recent emergence of selective, or niche, specialty fragrances.
Industry observers say the trend for niche fragrance brands is rising from the ashes of the traditional Italian perfumery, a sector that has experienced consolidation and closings. Sales in the perfumery channel were flat to down last year.
But niche brands are said to be lining more shelves of still-independent perfumeries that haven’t been shuttered or sold to a bigger chain. The light end of the tunnel, according to experts, is a mixed merchandise offering featuring the bigger fragrance names alongside the presence of new and niche brands.
Guido Wetter, co-owner of niche perfumery Profumo in Milan said increasing selective product was a way for some perfumeries to stay afloat. “We have seen those perfumeries that have not been bought out by the bigger chains in recent years or disappeared stay alive by raising the quota of niche products on the shelves,” he said. “The only way they can beat their competitors is by level of service and choice of product — especially the sort of products that are considered rare.”
At the second annual Fragranze — a fair in September dedicated to artisan and niche beauty — Celso Fadelli, president of Herbarium, concurred. “The Italian perfumery situation has boiled down to three possibilities,” said Fadelli. “That independent stores are bought by the big chains, [that they are] sold or they have to search to offer a selection of product that is more exciting and different.” Herbarium is the Italian distributor for brands including Clive Christian, Aesop and the exclusive worldwide distributor of Capri’s fragrance brand Carthusia. Fadelli said Herbarium was concentrating on its exclusive distribution of niche Italian brands, including the perfume and home fragrances by Torino-based nose Laura Tonatto, as well as Carthusia.
Fragranze, held here by Pitti Immagine Sept. 17-19 at the Limonaie of Palazzo Corsini, recorded big attendance increases. The number of exhibitors at the fair doubled to 88 brands. Visitor numbers were also up — 1,000 compared with 800 at 2003’s edition.
Related Articles
Meanwhile, the question remains whether devoting increasing amounts of perfumery space to niche brands will relate proportionately to better sales. Furthermore, though Wetter said he has seen an increase in sales and interest for niche, harder-to-find products, he said new attention to these products could destroy what cachet the brands currently have. “The discussion is strange because if the popularity of these brands is growing and if people are able to find them in more shops, then you have to ask — will they keep their niche status?” he said. “I think it is very fashionable right now to search for and to desire niche brands in beauty, but if the market is flooded with demand and production soars, then brands are no longer niche. Their distribution in Italy has grown but it’s not that simple for these sorts of companies to grow,” said Wetter.
Apparently, though, niche Italian perfume companies including Acqua Di Biella, Laura Tonatto and Profumo di Pantelleria are nevertheless bulking up to meet demand. Conversely, Herbarium’s Fadelli said Carthusia had absolutely no plans to increase production.
At Fragranze, Herbarium presented Carthusia’s limited-edition 700-ml. fragrances with gold caps, Fiori Di Capri and Carthusia Uomo. The perfumes are priced at $450 and only 1,000 pieces will be made. Carthusia, formed in 1380, operates out of a 538-square-foot laboratory in Capri. The line is available in 150 points of sale in the world and in 15 countries.
“They are at full capacity and are working with raw ingredients from the island so literally cannot increase their production,” said Fadelli. However the company has plans to increase sales points and might add another fragrance, Fadelli noted.
Laura Tonatto’s collection is another of Herbarium’s exclusive distribution deals. The namesake 420-item fragrance, body and home fragrance line includes the latest launch of a 16-item car fragrance collection. Laura Tonatto has 250 points of sale worldwide, and is expected to increase turnover by 40 percent to 2.5 million euros, or $3.24 million at current exchange rates, by 2005.
Silvio Levi, president of distribution firm Calé, said he was also focusing on Calé’s exclusive global distribution of Italian perfume brands Acqua Di Biella and Profumo Di Pantelleria. Both lines have had launches. A new women’s fragrance for Acqua Di Biella, called Janca, was inspired by a river near the northern Italian textile region of Biella. It’s priced at 80 euros, or $103.5, and launched in September. The other, called Aire, is a unisex fragrance from Profumo di Pantelleria. It was inspired by a protected strip of vegetation on an island of Sicily and will be launched this month.
Levi said the retail sales of the brand are expected to double to 200,000 euros, or $258,815, by 2005. Doubled turnover is also expected for Profumo di Pantelleria, which is expected to hit 400,000 euros or $517,629, in 2005. But Levi asserted sales volume wasn’t the object with both brands. “It’s the right placing and positioning of the brands — then step-by-step they can grow,” he said.
Meanwhile, some niche Italian brands want to reach the American customer through U.S. department stores. Ten-year-old perfume line Il Profumo, based in Reggio Emilia, launched its scent Chocolat in September. The firm has a signature store in Reggio Emilia but is trying to expand the brand’s 200 points of sale, and plans to launch in the U.S. by yearend. Industry sources reported the brand’s sales at 500,000 euros, or $647,037. The firm is expecting 20 percent growth annually and says it wants to “remain small.”
Marionnaud Sees Softer Half
PARIS — Citing “exceptional reasons,” Marionnaud Parfumeries said in a statement this week that its first-half profits will be “inferior to those usually obtained.” The French perfumery chain said changes in accounting procedures under discussion with auditors could affect its pretax profits by about 20 million euros, or $26 million at current exchange. Marionnaud has twice delayed reporting its first-semester profits, which were originally due to be released Oct. 26. The firm has now scheduled to communicate the figures Dec. 14. Marionnaud’s stock price fell almost 6 percent on the Paris Bourse Wednesday.