HERMES READIES 24 FAUBOURG FOR U.S.
Byline: Pete Born
NEW YORK — Hermes will begin rolling out its latest women’s fragrance Sunday in hopes of giving its small but growing U.S. business a major boost.
The fragrance, called 24 Faubourg in a reference to the address of the firm’s Paris flagship store at 24 Rue du Faubourg Saint Honore, went on sale two weeks ago at the HermAs store here, and is due to be introduced at Saks Fifth Avenue and Neiman Marcus. Distribution will subsequently be expanded to some Nordstrom doors and Bergdorf Goodman and Barneys New York by Valentine’s Day on Feb. 14.
Hermes now has a U.S. fragrance distribution of only 150 doors, with no plans to widen the network. But Laurent Mommeja-Hermes, president and chief executive officer of the U.S. subsidiary, Hermes of Paris Inc., has high expectations.
“My hope is that this is going to be a rocket for Hermes,” said Mommeja-Hermes, who is a sixth-generation descendant of founder Thierry Hermes and the nephew of the current chairman of the French parent company, Jean-Louis Dumas-Hermes.
Hermes has been attempting to rekindle its U.S. business since 1983, when it reacquired control over the American distribution. For the previous 20 years, control had changed hands between Beecham and Lancaster, Mommeja-Hermes said.
When Hermes regained control, distribution was slashed from 1,500 doors to 10, Mommeja-Hermes said, and the company began rebuilding from there. Although executives did not break out figures, industry sources estimate that the company’s American fragrance sales amounted to $5 million at retail in 1995, with 60 percent of the total done by women’s scents, led by the 1961 classic Caleche.
The biggest seller in the men’s category is Eau de Cologne, launched in 1979.
The projection for 24 Faubourg reportedly is at least $2 million at retail in its first year, with hopes that it will become the company’s best-selling scent.
Mommeja-Hermes said he hopes the new item’s sales are strong enough to ignite the entire brand. During the last two weeks, the pre-launch sales at the New York store were 50 percent above expectations, Mommeja-Hermes said.
Fragrances now generate 5 percent of the company’s U.S. volume, said Mommeja-Hermes, who wants to increase that percentage to 15 by the turn of the century.
Considering that the Hermes total is also expected to grow, Mommeja-Hermes figures that fragrance volume will leap by a factor of five in the next five years.
Faubourg was launched in May in Europe, where Hermes had projected first year sales of $19 million, with the global total rising to $35 million once the line is rolled out worldwide.
In Paris, the introduction had been viewed as an effort by the company to get behind its fragrance business after letting it languish for nine years. As previously reported, Hermes had not launched a fragrance since 1986, when it introduced Bel Ami for men.
The launch of Faubourg also signaled a renewed commitment by Hermes to put serious support behind its scents: Faubourg had an advertising war chest of $4 million for the spring launch. In addition, at least $1 million has been earmarked for the U.S. introduction. Mommeja-Hermes said about 10 million Scent Seals will be disseminated via an ad appearing in the February editions of six fashion magazines, including Vogue, Harper’s Bazaar and Elle. Promotion will also include heavy sampling and strong in-store visual presentations, added Mommeja-Hermes.
The product is expensive, with the nine-item line ranging from $75 for a 1.6-oz. eau de toilette to $325 for a 1-oz. perfume. The most impressive item is a 20-oz. eau de toilette, priced at $550 a bottle.
The line includes a 0.25-oz. refillable perfume purse spray for $175 and a 3.3-oz. eau de toilette for $100. Spray and pour versions are priced the same for both the 1.6-oz. and 3.3-oz. eau de toilette. A bath line will be added in time for Mother’s Day in May.
The large size shows off the intricate design of the bottle, both the lines etched in the bottle’s face and the gentle curves of its shape. Mommeja-Hermes said the design was picked to suggest both a Hermes scarf and the curves of a woman’s body.
The fragrance will be officially launched at Saks and Neiman’s next week. But Neiman’s, which will mark the launch with a reception in Dallas Monday, began selling Faubourg at Christmas, and the initial sales were strong. “We have done extremely well,” said John Stabenau, vice president at Neiman’s. “The initial response has been superb.”
Stabenau noted that the $550 item “just flew out of the store.”
He projected that Faubourg could push Hermes into the top 10 of Neiman’s women’s fragrance rankings.
Steve Bock, senior vice president and general merchandise manager of Saks, said the Hermes stable has climbed into the store’s top 15 and he expects a large splash from Faubourg. “It’ll be very strong statement,” he said.
Bernard Bourgeois, chief chemist of Hermes, is credited with developing the scent with Quest International. He described it as a fruity-floral-woodsy combination, designed to evoke the sensuality and mystery of traveling through Mediterranean lands.
Bourgeois added that he is at work on a men’s fragrance, tentatively slated for introduction in 1997.