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  1. #1

    Default Inter Parfums to drop Celine

    Inter Parfums to drop Celine, create four JVs

    French fragrance manufacturer Inter Parfums SA has decided to pull the plug on its fragrance license for LVMH-owned French fashion brand Celine at the end of 2007, four years before its expiry. “The brand didn't take off for us,” Inter Parfums SA president Philippe Benacin explained at the presentation of the group's annual figures held yesterday in Paris. “We didn't find the right angle of attack for [it] and it has become the weak brand in the portfolio. We have discussed it with LVHM and will pass the license on to a successor,” he added.

    Sales for the Celine fragrance business were slow in 2005 with a 1% on-year rise to €1.9m. To ensure that the brand does not become a center of loss for the company between now and the end of 2007, Benacin will engage in a stop-gap strategy by which Inter Parfums will continue with launches, mainly line extensions and ancillaries in order to earn €1m to €2m per year to cover the royalty costs of the license.

    Benacin is pleased, however, with the performance of its remaining portfolio of fragrance licenses including star brands Burberry (Burberry Division) and Lanvin, ST Dupont, Christian Lacroix, Paul Smith and Nickel (Luxury & Fashion Division). In addition, he intends to bolster growth in the immediate future with a series of launches over 2006/07, notably that of Burberry London – on the road to becoming a star product for the brand following the success of its UK launch.

    The Burberry Division currently represents 67.5% of Inter Parfums SA's business. Benacin expressed a will to push the other brands to make for an eventual 50/50 split between divisions.

    The recently acquired Nickel brand posted €3.1m in sales in 2005 and will reach €4.4m in 2006, estimates finance director Philippe Santi. He says that the break-even point for the investment in the brand at €5m, which should occur within the next 18 to 24 months at current growth rates.

    Christian Lacroix, with €4.9m in 2005 sales is performing well, notes Benacin, with an on-year growth of 33% driven mostly by the brand's Tumulte launch. “Even though the figures are low, the activity is good and promising,” he explained, in what may be understood as a vote of confidence in the recent change of hands of the fashion business from LVHM to US investment firm Falic Group, which acquired cosmetic brands Urban Decay and Hard Candy also from LVMH in 2003.

    In terms of international strategy, Inter Parfums announced it is to establish joint ventures (JV) in its four key European markets: Germany, Italy, Spain and the UK. The JVs are set to open on July 1 and will be accompanied by a return to an active seeking-out of acquisitions by the company after the relative stabilization of its 2004 acquisitions of the Lanvin license and Nickel business.

    Benacin explicitly lamented not having scooped the Diesel license, which subsequently went to L'Oréal, referring to it as Inter Parfums' primary acquisition interest in 2005. Diesel falls perfectly into the category of licenses Inter Parfums is seeking to acquire, he said, such as fashion brands originating in France, Italy or the US which evoke a distinctive lifestyle and which have a story to tell.

    “L'Oréal will perform very well with this license,” he concedes, estimating the potential fragrance business to be worth between €50m and €100m. “L'Oréal could grow the brand faster than we could,” he offered as a possible reason for losing the license.

    Net profit for the company in 2005 was up 5% to €16.3m, while its 2005 sales were €194.4, up 24% on 2004. The company expects 2006 to yield €215m in sales, signifying a 11% increase on year.

  2. #2

    Default Re: Inter Parfums to drop Celine


    I love the sweet yet understated dry woody scent of the mens version, but really, how long does one expect it to last in notariety if they don't keep it interesting?

    Fickle and easily bored is the market. Reinvention is usually mandatory in this life and time to stay within focus.

    Close your eyes, so you can see what you're smelling.

    "Press trigger twice to release the strength of wood...the wantonness of vanilla...the sentiment of floral...the passion of spice!"

    ~My reviews~

    ~My Wardrobe~


  3. #3

    Default Re: Inter Parfums to drop Celine

    I hope LVMH make their own Céline perfumes now.
    I don't like much of what comes from Inter Parfums anyways.

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