Americas Duty Free speaks with Perfume Holding CEO, Dino Pace, about the companyâ€™s renewed focus on travel retail in the Americas
â€œOur focus for 2014 is to reassess our organization in order to strengthen the relationship with our duty free partners, especially in the Americasâ€Â Dino Pace, CEO of Perfume Holding, told Americas Duty Free ahead of this yearâ€™s TFWA WE show in Cannes.
Indeed, Pace believes that duty free, and specifically the channel in the America, will be the engine that drives growth for the company in the near future. And his opinion is well-founded; the Americas represents 22% of Perfume Holdingâ€™s overall business. Moreover, the company has a leading market share in some very key countries, including Brazil and Mexico.
â€œOur growth strategy is mainly on Ferrari as the main pillar of the portfolioâ€, Dino Pace explains. Perfume Holding is taking a three-pronged approach which includes protecting its market share where it is the market leader; entering new markets where it sees a high potential for the Ferrari brand given its strong worldwide appeal; and exploiting new distribution channels where its brands arenâ€™t yet present. An example of the latter would be duty free and department stores in the US.
Of course, the luxury segment in travel retail is extremely competitive. As such, Perfume Holding strives to stay ahead of the game by ensuring that its new products are state of the art in essentially every way, from the perfume itself and the packaging to offering good value for money, which is often a consideration for consumers when shopping duty free. The company also focuses on developing eye-catching merchandising solutions that will stand out in stores.
Dino Pace notes that logistics are also an area of concentration as efforts in product development and merchandising mean little if new launches donâ€™t reach stores in a timely manner: â€œWeâ€™ve streamlined our organization to ensure that weâ€™re a fast and efficient solution for our partnersâ€ he says.
And the company has ventured into social media as well, seeing it as an important way of engaging younger generations. â€œNext fall we have already committed to strong web/social media advertising in Brazil to support our Ferrari Black fragranceâ€ Pace says.
The newest projects that Perfume Holding is working on include a new merchandising concept for Ferrari and Atkinsons. The concept is expected to be implemented first in Changi Airport next fall. Furthermore, new Ferrari Essence Collection travel retail miniature sets will be on shelf by the first quarter of 2015.
â€œThe pipeline in 2015 will be full of initiatives, especially for Ferrariâ€ Pace tells us. â€œWe will reinforce the brandâ€™s premium product offer, launching the new Essence EDT collection in spring and a new blockbuster in fall. I can only tell you that we are talking about unique productsâ€”real masterpieces in the fragrance industryâ€”and we are really enthusiastic to live this moment in our companyâ€™s lifeâ€.
We ended our conversation by asking Pace what retailers can do to help Perfume Holding reach its goals for the rest of this year and next. â€œWe are asking to be given the opportunity to show just how well our brandsâ€”Ferrari and Atkinsons primarilyâ€”can perform. Wherever we have the right space and the right assortment, our numbers are definitely interesting and retailers are cashing outâ€.