Puig has inked a deal with Clarins Fragrance Group for the distribution of the Spanish firm’s prestige fragrance portfolio in North America, effective July 1.
Puig’s current North American contract with Coty ends June 30. The two firms have partnered for the past six years, during which time Puig’s North American business more than doubled, according to Marc Puig, chairman and chief executive officer of Puig. According to both parties, the split was a mutual decision.
When news of the Coty-Puig dissolution came, Puig noted that “the time has come for Puig to redefine a new approach to pursue growth in the North American markets.”
Gaining market share in beauty appears to be a key priority for Puig, whose prestige fragrance portfolio includes Prada, Valentino, Paco Rabanne, Carolina Herrera and Nina Ricci both in the U.S. and Canada. In April 2012, after reporting a 19 percent leap in net profits for its fragrance and fashion group to 155 million euros, Puig attributed the success to “a certain strategy that we chose to pursue a few years ago, when we said that we wanted to focus our activity in building brands through fashion — and that has to do with the brands that we have in our portfolio — and then translating the image of those brands in the fragrance category, whether ours or from third parties through licensees.”
Clarins Fragrance Group is a division of Clarins Group in the U.S. and Canada responsible for the Thierry Mugler, Azzaro, David Yurman and Swarovski fragrance brands.
Under the terms of this agreement, the Clarins Fragrance Group in the U.S. will provide back-office support services, while Puig will handle all marketing affairs for its own portfolio and will also manage key accounts. Puig and Clarins Fragrance Group will share a fragrance-dedicated sales force.
“Two of the fastest-growing fragrance groups in North America [joining] forces as this alliance allows us to not only draw upon mutual success and experiences in the industry, but also ensure that together we’re continuing to provide the highest quality of fragrance for our customers,” said Didier Maine de Biran, executive vice president and general manager of Puig in North America. Added Jonathan Zrihen, president and chief executive officer of Clarins Group North America: “Following a similar successful experience with Inter Parfums for the last two years, we believe in the model of sharing back-office costs and the opportunity of building together an efficient sales organization. It allows us to further invest in our brands as well as the in-store consumer experience, strengthening our positions in the market.”
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