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In France perfume manufacture is an industry with an ancient tradition and Grasse on the French Riviera has been its capital since the 18th century; today, that industry is undergoing change. Indeed, even washing powder manufacturers have entered the market, whose growth has withstood the impact of economic crises. Examples of the last few years include Americans Procter & Gamble, Unilever and Johnson & Johnson. Very often, these groups are also specialists in beauty and hygiene products and the temptation to complement the upper end of their product range, i.e. luxury goods, is great. That is why Unilever acquired the Fabergé-Elisabeth Arden Group as early as 1989 as well as Calvin Klein. It also has the licenses for Scherrer and Lagerfeld. Procter & Gamble had started with "mid-range" brands: Oil of Olaz and Vidal Sassoon. By buying the American cosmetics group Max Factor, it acquired the Hugo Boss and Laura Biagiotti licenses; in 1994, the group bought up Giorgio of Beverly Hills. Thanks to a consistent policy of acquisition the German detergents manufacturer Benkiser has also successfully converted, buying up Coty perfumes and Nikos products. The emergence of new groups in the sector has had two repercussions: firstly, stiffer competition, which explains the inflation in launch costs. Secondly, by investing in large-scale distribution, the sales practices used by washing powder manufacturers are diametrically opposed to those implemented by leading perfumers. In the past Guerlain refused to hear of anything but highly selective distribution. In Paris, its products are sold exclusively in its boutiques. But, more and more, French perfumes men are starting to line the shelves of large department stores, alongside more modest fragrances such as eau de Cologne for example.
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Last Updated: July 25, 2008 | ||
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