“INNOVATING IS NOT LAUNCHING A NEW PERFUME, BUT DIFFERENCIATING WITH EXCLUSIVE PRODUCTS”
At a time like this, where the perfume industry has reached the highest levels of competitiveness, Perfume Holding, distributor of iconic Atkinsons and Ferrari brands, a niche and selective brand respectively, bets on new formats that make the necessary differentiation. Dino Pace, CEO of the company since 2014, offers more data in these pages.
Text: Laura Pérez / Photo: Perfume Holding
What are the brands currently in the Perfume Holding portfolio?
Our portfolio includes very different brands. The most important for us is Atkinsons, founded in 1799 by James Atkinsons, which gained popularity in the nineteenth century and is now part of the niche market. We acquired it in 2013 and it has always made us very happy. We also have Ferrari Cavallino, the iconic Ferrari brand, intrinsically linked to the charisma of its founder, engine and speed enthusiast Enzo Ferrari. This brand is geared towards an audience which loves details and Scuderia Ferrari, which is associated with Formula1 and is more sporty, passionate and alludes to competition.
To conclude, our portfolio is completed by a wide range of top brands such as Liu Jo, Bikkembergs, Sergio Tacchini, La Perla, Grigioperla, John Galiano, Iceberg, Fantasy Forever, English Garden, English Lavender, Gold Medal, Fine Perfumed Line, Morris and I Coloniali. They ultimately embrace three areas: the niche, the one that deals with skin care and that of fragrance.
Each of these brands is present in more than one hundred countries. What is the key to success?
Perfume Holding is a small business if compared to the “big players” of the industry. These are usually very demanding in retail and distribution and sometimes they do not know how to adapt to the flexibility that the market requires in terms of innovation and new product proposals. As a small business, we work together with distribution chain actors, listen to their problems and suggestions and react immediately.
What values does Perfume Holding convey through its fragrances?
Especially two things. First of all, we do things better than others and we do them because we have everything we need to control the whole process. There are few companies that really control it. Instead, our R&D department is internal as well as manufacturing. The same goes for distribution chains controlled by our company. This means that we create the products, analyze them internally and contact the distributors directly; All this allows us to save on expenses to contact brokers and to offer a better product. The second value as a company is our ability to innovate. It is very important to offer consumers different and exclusive things.
What are your goals in distributing Perfume Holding brands in Spain?
The Spanish market is one of the most interesting in Europe for both its size and its upward trend. The economy is not at its peak, but there is a willingness to recover. That is why it is very important for us, and also because it is a very competitive market.
This year our company is willing to do important work in this country as far as organization, communication and launches are concerned. The goal we set is to continue to grow here thanks to the success stories that have been recorded on other markets where we work best and for longer, markets that have left us completely satisfied and value our brands , such as those of the Middle East, Central and South America, and the countries of the former Soviet Union.
And concretely with the distribution of Ferrari, the brand you are currently advertising?
We have placed great expectations on this brand so that its distribution in Spain is a success, because Ferrari is recognized worldwide. For example, it is the second best selling brand in Brazil; it is the most popular in all Latin America; In Italy, data is also incredibly positive after a change in distribution.
That’s why we think it’s worthwhile to target the Spanish market. There, we have just introduced the Atkinsons brand with fantastic results to the point that we are also optimistic for the Ferrari brand.
What strategic plan have you made for marketing and brand communication?
We have a very comprehensive mixed plan that includes advertising on print, television, and digital media. It is very important for us to present the brand with a sense of innovation. A great deal of perfumes are introduced on the beauty market every year to the point that a new perfume ceases to be an innovation. It is even tedious to announce the launch of a new fragrance. So I propose to think of something that can attract the interest of shopkeepers and consumers and that it is not a mere perfume; the solution would be to enter something different from what other competitive companies offer on the market. Differentiate with new things.
You are thinking about the built-in smartphone case that has just been launched in our country, right?
That’s it. The iPhone case incorporates an evaporation system that allows the user to apply the Ferrari fragrance at any time, everywhere.
According to you, what changes are taking place in the selective perfumery market that have influenced your company?
The world is changing completely and all industries are suffering from these continuous changes that affect both consumer habits and production efficiency. And the perfume world is no exception. The market is incapable of absorbing the incredible volume of new launches that we currently have. The very concept of fragrance seen as a bottle on the bathroom shelf is already an obsolete concept, considering how the consumer’s relationship with the product changes. Even the world-wide increase in air travel is a trend that forces us to review some past results. It is time to innovate the world of perfume.
Any concrete proposals in this regard?
In general, there is a key aspect that is specialization. It is found in the niche sector. The niche consumer knows what product is working and which one is not good. Certainly, if you choose selective scents, they cost. In Perfume Holding we try to anticipate the trends and this project we are launching with the Ferrari fragrance has this purpose. Certainly, it will not be the only project we will undertake to control the consumer experience. Others have already begun, and are patented novelties.
What is your opinion of the growing tendency of the online shopping channel in selective perfumery?
It is inevitable! Everyone is online and offer discounts. However there is a difference between the physical and the digital purchaser and it is the buying experience. It is certainly an added value that in the physical sales point there is someone who knows the scents well and can advise you, conveying the sensitivity of the brand. Appreciating the moment of pleasure that involves choosing the scent, smelling it, trying it on your skin, allowing it to overwhelm you, is something that the online channel cannot offer.
What are the milestones achieved by Perfume Holding since you took over in 2014?
The work we have done with Atkinsons is the most important. Introduced by us in the market starting only from 2013 and thinking that now it is in the big stores of important cities all over the world and with extraordinary results is a great achievement. We must also highlight our growth in the market thanks to the success of Ferrari in key areas such as South America and the Middle East
What are the bets for 2017?
Mainly to be very close to the consumer, to grow in terms of quality of our offer. And, of course, to consolidate the outcomes of our strategy in all markets.