Paris -- Puig Beauty & Fashion Group is on track to make its 2006 business plan, which includes doubling sales to $1.4 billion at current exchange rates, company executives say.
The family-owned, Barcelona-based group implemented a broad restructuring program one year ago that includes divvying up the firm by product category, rather than geographic location, as it had been in the past.
The main reason for the revamp was "to find synergies between brands and activities and to share corporate know-how," explained Javier Cano, Puig's chief executive officer.
The group now consists of three main divisions: Puig Prestige Beauty Brands (PPBB), overseen by Manuel Puig; Puig Fragrance & Personal Care (F&PC), headed by Carlos Iniesta, and Fashion, run by Marc Puig. Within PPBB, PPBB Barcelona includes the Carolina Herrera beauty and new beauty license brands. Its general manager is Jose Manuel Albesa. PPBB Paris, overseen by Chrystel Abadie-Truchet, comprises Nina Ricci and Paco Rabanne beauty and Payot.
The fashion division, representing 5 percent of group sales, includes Herrera, Rabanne and Ricci.
The Puig revamp has affected almost every employee since Jan. 1, 2001. Ninety percent of Puig's staff reports to new bosses and 80 percent have been given new responsibilities. Many people have moved offices and the group's main research and development facilities were centralized in Barcelona.
Puig executives feel the revamp is paying off. The PPBB division, which registers about 47 percent of company sales, closed 2001 with 7 percent growth, said Manuel Puig, who added that minus the North American business, which was hard-dashed by Sept. 11 events and the subsequent fallout, that figure would have been closer to 11 percent.
"I would like to improve our position in prestige fragrance products," he said. "The idea is to reach a number five position in prestige fragrance products."
By geographic zone, 45 percent of the division's sales are generated in Europe; about 33 percent in the Americas, and about 22 percent in Asia and the Mideast together.
"In the Americas, we need to improve [our sales] in the North," said Puig.
"I think that all anyone really wants in life is to have people understand us for who we actually are, despite everything," says Ruth Negga. The actress talks "Preachers" season 2 and more on WWD.com. #wwdeye (📷: Dan Doperalski)
"That's something that resonates with me too because I'm so locked into a number. If I go over that number it completely ruins my day so it's nice to get detached from the number on the scale." - Chelsea Handler on Kelly LeVeque's book "Body Love." #wwdeye (📷: John Salangsang)