Shiseido to ‘Integrate’ Two New Brands Into Japanese Market
TOKYO — Shiseido will launch two new brands in Japan for fall and the firm expects the businesses — a makeup line called Integrate and a skin care brand called Elixir Superieur — to generate sales of 30 billion yen, or $260 million at current exchange, by the close of the fiscal year next March.
Integrate will make its debut Aug. 21 and is expected to generate sales of 10 billion yen, or $88 million, in the first seven months on the market. The line is positioned in Japan’s open-sell market for products priced under 2,000 yen, or $17.50, a category that makes up about 60 percent of the entire makeup market, according to Shiseido, which added that the consumer base for such products consists in part of Baby Boomers.
By the end of this fiscal year, Integrate will be carried at 9,000 drugstores, national chains and cosmetics specialty stores. There are plans for the brand to be carried in 15,000 stores by fiscal 2008, with projected sales of 30 billion yen, or $263 million. Shiseido is aiming for Integrate to become the top-selling brand in the self-selection makeup market, and to introduce Integrate in other markets in Asia such as Taiwan and Korea.
Elixir Superieur, which targets women 30 and older, will be launched Sept. 21. The line will be carried in 23,000 doors, including cosmetics specialty stores, drugstores and national chains. It’s expected to generate 20 billion yen, or $175 million, through March. Shiseido has set a sampling campaign of 130 million impressions in hopes of gaining five million users of the brand within the first year. Sales are projected to reach 80 billion yen, or $700 million, within three years and Shiseido hopes it will become the number-one brand in Japan’s mid-priced skin care market.
In addition to Integrate and Elixir Superieur, Shiseido has introduced four other “megabrands” in the Japanese market since last August: Maquillage, Uno, Aqua Label and Tsubaki.
— Koji Hirano
Scherrer to Launch Women’s Fragrance
PARIS — Parfums Scherrer is on the lookout for new licenses and is set to roll out a women’s scent, called S by Scherrer, worldwide.
The firm has exclusively manufactured fragrances for French fashion brand Jean-Louis Scherrer for five years, during which time it agreed not to sign other brands. Now that the clause has expired, the Paris company plans to sign a licensing deal with an additional fashion brand by yearend.
“I am looking at couture brands,” said Parfums Scherrer founder and chief executive officer Michel Benady. “As a small firm, I focus my full attention on one brand, which is how I won Scherrer.”
Benady said Parfums Scherrer, which industry sources estimate last year generated annual wholesale sales of about 10 million euros, or $12.7 million at average exchange, is negotiating with several brands. He declined, however, to disclose their names.
Meanwhile, the firm is boosting its portfolio of Scherrer scents with S by Scherrer, a women’s fragrance, which just bowed in France last month. It is the brand’s first women’s offering since Immense, which was introduced in 2002.
Benady said the new scent was inspired by the designer’s haute couture heritage.
“It’s a fragrance made for the Scherrer customer, for the couture universe,” said Benady.
Its bottle — designed by Serge Monceau — is meant to epitomize luxury. The clear glass flacon features a gold-colored statuette set in a niche on one of the bottle’s facades.
S by Scherrer’s floral Oriental juice was created by Givaudan’s Marie-Aude Couture-Bluche. It features top notes of pear, plum and bergamot; heart notes of tiare flower and rose, and base notes of vanilla, sandal and patchouli.
The fragrance is slated to bow worldwide in September.
In France, the scent is available in 30-, 50- and 100-ml. sprays for 36 euros, 58 euros and 80 euros, respectively, or $45, $73 and $101 at current exchange.
Industry sources estimate S by Scherrer will generate 4 million euros, or $5 million, in first-year retail sales.
The firm, which is present in 56 countries, will target Asia for the first time with a lighter version of the new juice, set to be launched in summer 2007.
— Ellen Groves
Parlux CEO Makes Buyout Offer
NEW YORK — Parlux Fragrances chairman and chief executive officer Ilia Lekach, in partnership with two investment firms, made a $29-a-share buyout offer for the fragrance firm.
Parlux confirmed Wednesday that its board had received a letter from PF Acquisition of Florida, which is owned by Lekach, pertaining to the possible acquisition of all outstanding common stock of the company at a cash purchase price of $29 per share, a 55 percent premium over the closing price on June 13. The shares currently trade on the Nasdaq. If the bid is approved, Lekach, along with two Florida-based investment firms, IZJD Corp. and Pacific Investments Group, have agreed to contribute their shares of common stock of Parlux to PF Acquisition in exchange for membership interests in the company.
Parlux chief operating officer and chief financial officer Frank A. Buttacavoli stated, “The offer has been referred to the Special Committee of Independent Directors of the Parlux board of directors.”
In his letter to the company, Lekach noted that the move is intended to eliminate substantial public company compliance costs and “to end disruptions in operations caused primarily by short sellers.”
Last year, the firm hired Citigroup and Oppenheimer & Co. to seek a buyer, an effort Lekach’s letter noted “has not resulted in a qualified proposal from a third party to acquire the company.”
— Molly Prior