MILAN — Salvatore Ferragamo SpA, mother or father firm of the Salvatore Ferragamo Group, and Inter Parfums Inc. have signed a worldwide licensing settlement for the manufacturing and distribution of Ferragamo branded perfumes.
According to a press release launched on Wednesday, the settlement will probably be efficient from October and can final for an preliminary time period of 10 years.
The deal marks a turning level for Ferragamo’s magnificence enterprise as its perfume division had been managed in-house for the final 20 years.
To make sure the continuity of the Made in Italy manufacturing and the best stage of synergies with the style home, Inter Parfums will function via a completely owned firm based mostly in Florence.
“Inter Parfums’ great competence and recognized professionalism make it the ideal partner to continue to develop the solid values of our brand as well as to maintain the ‘Italian-ness’ of the production,” stated Leonardo Ferragamo, chairman of the Salvatore Ferragamo firm, including that the associate’s “qualified commercial strength will also ensure a new boost to the business of our fragrances, which will be distributed through a carefully selected sales network.”
Inter Parfums Inc. chairman and chief govt officer Jean Madar outlined the label as “one of the most iconic and well-known brands in the luxury segment” and underscored that the addition to the corporate’s portfolio “represents a great opportunity to further develop our business in the fashion and luxury segment.”
Inter Parfums’ perfume licenses embody Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Moncler, Montblanc, Paul Smith, Repetto, S.T. Dupont and Van Cleef & Arpels. The group additionally owns Lanvin fragrances and the Rochas model.
As reported, Salvatore Ferragamo and Inter Parfums stated they had been in unique negotiations for the license final month.
Following the announcement, a gaggle of Salvatore Ferragamo staff expressed opposition to the deal in a one-hour sit-in in entrance of the corporate’s Osmannoro plant, exterior Florence. At the time, commerce unions underscored that the attainable operation would have implicated that “the rights and jobs of 40 workers are at risk” and requested the corporate to interrupt negotiations.
In response, the style home burdened that the deal was “aimed at ensuring a further boost to the perfume business and the continuity of the Made in Italy production” and that it was “ready to [take action] to offer the best possible solutions for workers.”
The licensing take care of Inter Parfums isn’t the primary within the historical past for the Ferragamo perfume enterprise.
In 1994, the model signed an settlement for the event and manufacturing of its first perfume with Eurocos Cosmetics, a Germany-based division of Procter & Gamble.
After discontinuing the take care of nothing having been produced, in March 1997 Ferragamo and Bulgari shaped a three way partnership — every taking a 50 p.c stake — referred to as Ferragamo Parfums SA. At the time, Bulgari was given administration duty below a service contract.
After a four-year-long partnership, the 2 events amicably dissolved the joint-venture contract, with Ferragamo buying from Bulgari its 50 p.c stake for an undisclosed sum. The Ferragamo Parfums division was then established in 2001 to manage the whole perfume enterprise in-house, from the event of the scent to the distribution.
In the primary quarter of 2021, gross sales of Salvatore Ferragamo fragrances had been up 5.3 p.c to 10.5 million euros. Overall, within the three months ended March 31, the corporate’s revenues rose 10.3 p.c to 244.6 million euros in contrast with 222 million euros in the identical interval final yr.