30 Jul 2023
“Inter Parfums” perfume production business 100,000 million / by investment man
Many people may think that luxury brands produce their own fragrances, in fact it is both yes and no.
Because there are many brands such as Coach, Montblanc and MCM that do not produce their own fragrances. but hire someone else to produce it
For these 3 brands, they hired Inter Parfums, a perfume production business from France. Currently, the business value is approximately 145,000 million baht, producing perfume for
Today, let’s look at the perfume manufacturer’s business model. What is the origin? Invest Man will tell you about it.
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Inter Parfums was founded in 1982 or 41 years ago by Philippe Benacin and Jean Madar.
from the beginning We can see that this company is the designer of the scent. and perfume production For many luxury brands such as Montblanc, Coach, Jimmy Choo and DKNY.
But in its early days, Inter Parfums’ business began with the production of mid-range fragrances. with a price that can easily reach the customer group
but this strategy did not make the company grow as the two founders intended
When it doesn’t go as intended The couple therefore decided to change the company’s approach. Let’s focus on the market. “Premium Perfume” instead
But instead of creating its own perfume brand, Inter Parfums chose a strategy. By joining hands with various brands in designing scents Including contract production
by this brand Most of them are fashion brands. and luxury jewelry brands
Many people may wonder why they have to choose to join hands with other brands. Instead of building your own brand?
Inter Parfums chose this strategy because the fragrance industry was in a transition period.
Fashion brands begin their inroads into the perfume business. Where previously there were only fragrance brands like Creed or Diptyque.
which this trend started from French fashion brand
before starting to creep into the United States
by pioneering brands Creating its own fragrances are Chanel with Chanel N°5, as well as Dior with its legendary Miss Dior fragrance.
which shortly thereafter More and more fashion brands are gradually entering this market. For example, Yves Saint Laurent started selling its first perfume in 1964.
Seeing the opportunity, Inter Parfums began to enter deals with brands, first with British luxury brand Burberry and followed by Paul Smith.
such strategy Causing the company to grow rapidly, only 5 years after the start of the deal with Burberry, the company was able to successfully be listed on the stock market.
However, doing business in this way There are risks as well.
Because it’s just a manufacturer Does not have its own brand losing a large customer will cause the company’s revenue to decrease significantly
This was the case with Inter Parfums. In 2012, the company didn’t get a contract extension from Burberry, its main revenue-generating brand. to the company at that time
From this story, in the next year The company’s revenue dropped by more than 14% and it took five years to return to the same level.
Cut to the present day, Inter Parfums’ business is not just a scent designer and perfume maker. but also to marketing and distribution can be called comprehensive to many luxury brands
For example, brands we are familiar with are Montblanc, Coach, Jimmy Choo, DKNY, MCM, Anna Sui, Kate Spade.
Including luxury jewelry brands like Van Cleef & Arpels as well.
Over the past 3 years, both the company’s revenue and profit have grown steadily.
– Year 2020, income 18,400 million baht, profit 1,305 million baht
– Year 2021, income 30,050 million baht, profit 2,986 million baht
– Year 2022, income 37,125 million baht, profit 4,132 million baht
Revenue represents an average growth of 23% per year.
Profits represent an average growth of 78% per year.
In 2022, the top 3 fragrance brands
that generate the most revenue for Inter Parfums are
In third place is Coach with sales of 5,500 million baht.
accounted for 14.9% of revenue.
In second place is Jimmy Choo with sales of 6,500 million baht.
accounted for 17.5% of revenue.
The most will be Montblanc with sales of 6,600 million baht, accounting for 17.8% of revenue.
Currently, Inter Parfums has a company value of 145,000 million baht, a 220-fold increase in value compared to the IPO 35 years ago.
Reflects that smell, although not a factor 4 and is not essential to our lives. But there are not many people that give importance to this matter The market therefore continues to grow.
on the business side luxury brand There will be options for both research and production by yourself. Or you can hire a specialist company to produce it for you. which has different advantages and disadvantages
meanwhile A group of contractors who produce their own perfumes. There is still a corner. and grow up
2023-07-30 12:00:55
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