PARIS — Hermès Parfums’ business is soaring.
The March launch of its men’s scent Terre d’Hermès (Earth of Hermès) catapulted the firm’s fragrance sales almost 40 percent by the end of June, year-on-year.
“We are happy; it is beyond our expectations,” said Veronique Gaultier, president of Hermès Parfum and managing director of Hermès’ leather and bags division. “It’s a product that’s made to last. And the dynamism created by Terre has boosted all our scents.”
For the first half of 2006, overall sales of Hermès fragrances soared 34.1 percent at constant exchange, to 23.7 million euros, or $29.8 million, at current rates.
Over the past five years, Hermès’ fragrance division has doubled its business.
To maintain momentum, the firm’s in-house perfumer, Jean-Claude Ellena, has concocted scents to reinforce Hermès’ existing fragrance collections.
“Our strategy is to take care of our pillars, not only to introduce novelties,” explained Gaultier. “We don’t want simply to launch things.”
In September, Hermès introduced Elixir de Merveilles, a gourmand eau de parfum with notes of caramelized orange, patchouli, tonka bean and sandalwood. It’s the third scent in the Merveilles collection.
“It is not a flanker,” insisted Gaultier, adding she doesn’t expect the scent to cannibalize sales of Eau de Merveilles, introduced in 2004. Each 100-ml. edp bottle sells for 95 euros, or $121. Industry sources estimate the elixir will boost the line’s sales 30 percent and generate 10 million euros, or $13 million, in wholesale business in its first year.
Hermès has built on its Hermèssence scent collection with the addition of Paprika Brasil, bringing the lineup to six fragrances. For the new scent, Ellena took inspiration from his travels in Brazil. Notes include braise wood from Brazil and paprika, as well as floral accords of iris and violet.
“We have given the freedom back to the perfumer,” said Gaultier, adding another way the firm does that is by not carrying out consumer tests.
The 100-ml. edp bottle retails for 143 euros, or $182.
Gaultier also discussed the strategy of selling scents exclusively in Hermès boutiques.
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“It’s another way of buying,” she said. “You are not inundated with fragrance and so can be captivated by the scent’s history and ingredients.”
The Hermèssence collection, whose distribution has doubled to 80 of the brand’s boutiques, generates 10 percent of Hermès’ overall fragrance business. The scent was launched on the market in September.