Canali's inaugural scent.

<STRONG>Canali Sets First Men's Fragrance</STRONG><BR>NEW YORK — Milan-based fashion house Canali SpA will launch its first fragrance this summer and the men's wear producer has, naturally enough, chosen to do a masculine scent, called Canali....

Canali Sets First Men’s Fragrance
NEW YORK — Milan-based fashion house Canali SpA will launch its first fragrance this summer and the men’s wear producer has, naturally enough, chosen to do a masculine scent, called Canali. The house also will launch men’s treatment products early next year.

Until last year, Canali had only dealt in the suiting, footwear and men’s accessories businesses. But after meeting with Italian fragrance marketer Eurocosmesi, the fashion house was wooed by the potential of the greater name recognition that can be associated with marketing a signature scent.

Eurocosmesi, the fine fragrances and cosmetics division of Bologna, Italy-based Guaber Group SpA, landed worldwide licensing rights for Canali fragrances a year ago. It’s expected the Canali fragrance will be carried in a significantly wider global distribution network than the fashion line’s 1,000 points of sale worldwide.

First off will be the U.S., where plans call for the Canali scent to be launched at Saks Fifth Avenue in August. It’s expected to be carried exclusively at Saks until the fall, when it will be rolled out chain-wide to Bloomingdale’s and Nordstrom. The scent also will be carried in Canali’s only U.S. store, a fashion boutique in Coral Gables, Fla.

Further rollout plans call for the Canali scent to reach roughly 200 doors in the U.S. by yearend. Within the first year, it could be carried in 700 doors in the U.S. Industry sources estimated the Canali scent could generate first-year retail sales volume of between $7 million and $10 million in the U.S., a market that now accounts for 40 percent of the fashion house’s $200 million in total revenues.

Internationally, the fragrance will launch in September. It’s expected to reach about six markets, including Italy, Hong Kong, Dubai and Canada, including 25 freestanding Canali fashion shops. U.S. distribution of the Canali scent is being handled by Karis Group here, which is led by president Cary Lopez and vice president Kristine Spurney.

Canali, a third-generation, family-owned fashion house, began as a tailor shop in Milan in 1934. Spurney believes Canali’s venture into the fragrance category is akin to its entry during the Seventies into the export business, which now accounts for 75 percent of its revenues. “For many years, they were focused on doing fashion [exclusively],” Spurney said of Canali. “But the third generation realized the potential that fragrance can add to name recognition.”

This story first appeared in the June 21, 2005 issue of WWD. Subscribe Today.

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Two versions of the scent will be produced: a 50-ml. eau de toilette for $45 and a 100-ml. version for $60. Four ancillary products will accompany the fragrance — an aftershave lotion, an aftershave balm, a deodorant stick and body shampoo, which will range in price from $18 to $40.

The Canali scent, which was blended by Fragrance Resources perfumer Pierre Bourdon, mixes top notes of bergamot, apple and coriander; a heart of lily of the valley, jasmine and orange blossoms, and a drydown of leather, suede and oakmoss accords. “The notes of the fragrance reflect the Canali man — refined, sophisticated and well traveled,” said Spurney. The Canali bottle was created by Italian design firm KMA.

In the U.S., an advertising campaign will break in September issues of GQ, Esquire and Vogue, an effort that will subsequently include Men’s Health, Details and Vanity Fair. An estimated $3.5 million to $5 million has been earmarked to support the scent’s U.S. introduction, according to estimates by industry sources.

In spring 2006, Canali plans to launch two men’s treatment products — a facial moisturizing cream and a body tonic gel. The move is intended to bring the brand “in line with the current [men’s] market trend,” the fashion house stated, referring to the current growth in the men’s prestige treatment category. Prices for the two treatment items have not yet been set.
— Matthew W. Evans

Lauder, YSL Speculation Discounted
PARIS — Speculation has reignited in Europe that the Estee Lauder Cos. might be out to acquire YSL Beaute. But knowledgeable market sources sharply dismissed the possibility on Monday.

YSL Beaute is Gucci Group’s beauty arm, which includes the Yves Saint Laurent, Van Cleef & Arpels, Oscar de la Renta, Roger & Gallet, Alexander McQueen, Ermenegildo Zegna and Stella McCartney brands.

Spokeswomen for Lauder and Gucci both declined all comment, citing their companies’ policies against responding to market speculation.

While some luxury analysts have suggested YSL Beaute is not a core competency for Gucci Group, industry sources Monday dismissed the idea Lauder would make such a large acquisition. Also, Gucci Group is believed to consider its beauty arm integral since it is profitable.

Market sources estimate a company like YSL Beaute would sell for one-and-a-half to two times revenues. Last year, it generated sales of 630.4 million euros, or $765.7 million.

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