The Group Clarins USA and the Paris-based Inter Parfums SA are expected to unveil this morning a plan to join forces in building their fragrance businesses in U.S. department and specialty stores.
A U.S. subsidiary, called InterParfums Luxury Brands, has recently been formed and will go into operation on Jan. 1, according to a joint statement by Philippe Benacin, president and chief executive officer of the parent Inter Parfums, and Stanislas Archambault, managing director of the new luxury brands subsidiary.
The new subsidiary — which consists of Burberry fragrances and makeup, Lanvin, Montblanc and Jimmy Choo — will be housed within the Clarins Fragrance Group, a division of Group Clarins USA, a subsidiary of the Paris-based Clarins. Jonathan Zrihen, president and ceo of the New York-based Clarins, said the two companies will share and manage the sales force together, with the combined staff selling brands from both firms.
The Clarins lineup consists of Thierry Mugler, Azzaro, Porsche Design, David Yurman and Swarovski. The New York firm will provide administrative and logistical support from its offices on Park Avenue and warehouse in Orangeburg, N.Y. The objective is to share costs, create a larger critical mass and build the business, Zrihen said. The Clarins chief said the existing sales force can be expanded by 20 to 25 percent. Each company, however, will continue to invoice retailers directly.
Also, after Jan. 1, Inter Parfums is expected to end its distribution agreement with Procter & Gamble Co., according to Zrihen.