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Beauty Beat: Sales Boost for Diego Dalla Palma Cosmetics

Diego Dalla Palma has reentered the cosmetics market in a flurry of color that has seen a 30 percent increase in sales in six months.

MILAN — Diego Dalla Palma has reentered the cosmetics market in a flurry of color that has seen a 30 percent increase in sales in six months.

The cosmetics firm, under new management, relaunched its line with brand- new packaging and products beginning in March 2003.

Glossy white square packaging with defined black lines set the products apart from the old stockkeeping units, which were popular in the Eighties. The relaunch has seen the company rerelease some 200 products.

Points of sale in Italy have been decreased from 890 to 700 within the past six months. The reason, according to Vittorio De Nadai, general director of holding company AGGF, is to position the line more selectively.

“Our goal is to maintain our ethos as a professional makeup artist brand but always with a modern slant on the future,” said De Nadai. “We reduced the number of points of sales to choose those that could properly show our newly innovated merchandising.”

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To kick-start the launch, the company invested some $1.4 million (1.2 million euros) in advertising and $1.83 million (1.6 million euros) in point of purchase material and merchandising. The effects, according to the company, have been outstanding. All dollar figures have been converted from the euro at current exchange rates.

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“We have heard reports of customers who have been tearing the page from magazines of our advertisement featuring the striking blue eye shadow which was used and bringing it to a perfumery store,” said Grazia Zuccarini, brand manager of Diego Dalla Palma.

Despite the increase in sales, the company says they are expecting a turnover of $7.34 million (6.4 million euros), which is a similar figure to the turnover of 2002.

Looking forward, Diego Dalla Palma is aiming to expand to Russia, Europe and the United Kingdom. At the moment there are no plans to enter America.

This fall, the company has released nine products to complete the 200-sku line. Oil-free foundation, liquid eyeliner and tanning products feature in the new releases, as does a relaunch of an old product — rice powder for fixing foundation. These products are priced between $17.22 and $34.45 (15 and 30 euros).

The company is also planning to align itself with future fashion events in Milan, including sponsoring events for young designers.

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