Inter Parfums explains its growth strategies
macroeconomic pressures by expanding its cosmetic and skin care
ranges and increasing its brand portfolio.
Outlining the company's growth strategy, CEO Jean Madar told investors at the Cowen & Company Consumer Conference in New York that he expected growth to be high despite the gloomy economic backdrop.
Madar said manufacturers at the cheaper end of the market were more likely to be hit by an economic downturn because their customers, unlike high earning luxury buyers, are often forced out of the market.
Inter Parfums expects sales to rise 18 percent to $378m for 2007 while it anticipates a 15 percent increase for 2008 and long term growth of more than 10 percent.
Explaining how the company intends to hit these targets Madar said new product launches would be crucial with releases expected from a number of its brands including Burberry, Quiksilver and Paul Smith.
Inter Parfums has achieved great success by focusing its energies on luxury fashion brands and has so far avoided the celebrity trend.
Madar said generally speaking celebrity endorsement is not appropriate for its brand portfolio although an 'evergreen' name may potentially work for the company.
Acquisitions, agreements and new licenses will also continue to be a source of sales growth for the company.
Inter Parfums paid $29.7m for the marketing rights to the Lanvin brand in February last year.
Another of Inter Parfums' growth strategies is to move further beyond perfume and expand its range of skin care, hair care and cosmetic products.
In conjunction with Nickel the company is also looking to explore opportunities on the treatment side of the beauty industry.
Vital to Inter Parfum's current business model are specialty retail partners and the company will be looking to pursue sales growth through this avenue.
Following the success of partnerships with Banana Republic and Gap, the company has recently signed agreements with New York & Company and Brooks Brothers to manufacture and design personal care products on their behalf.
Under the agreements Inter Parfum takes care of product development, formulation, packaging design and manufacturing, while the retail partners are responsible for the marketing and sales of the products.
