Sweet smell of Colonia wafts into the region
In its almost-100-year history, Acqua di Parma has always resisted going down the mass-market route.
Instead, this Italian perfumery has retained its roots despite being bought by the LVMH group – the world's largest luxury goods conglomerate – six years ago.
The company believes the Middle East is one of its biggest focal points and sees it as a main growth market, alongside China.
And the person tasked with developing the brand here is CEO Gabriella Scarpa, 54, who joined in 2003.
"The main visibility for the brand in this region is Dubai. We have been here for four years, building it little by little," says the Italian. It is now available at Saks Fifth Avenue, Galleries Lafayette, Harvey Nichols and Boutique 1 in Dubai.
But the UAE is a centre of interest for other reasons, too. Acqua di Parma is in talks to supply Emirates Palace hotel with guest amenities and is considering opening a spa here, following the success of its Blu Mediterraneo Spa, which opened in Porto Cervo, Sicily, in April.
"We would like to have a spa [in the UAE]. Investment has been blocked for spas of late but we want to explore the possibility," says Scarpa, who combines her role with Acqua di Parma with being Country General Manager Italy for LVMH and CEO of Parfuma Christian Dior.
And how does she manage to look after three companies while juggling the demands of a home life – particularly as this typical Italian loves nothing more than getting her friends and family round the dinner table when she's not travelling the world?
"I am secure in my life because I have built up my career. I am a workaholic but I have to plan. I went into cosmetics for the experience. It was a different market to what I was used to so I could not apply everything I knew but you learn to adapt.
"I am not someone who can stick to the same thing. I had the chance to learn about different markets and took it as I always want to know more," she explains.
Scarpa started her career working for industrial companies before moving to watch brand Swatch and then into the fragrance and cosmetics sector.
In a world where the perfume industry has begun migrating into the fast-moving consumer goods market, with the release of celebrity scents, as well as seasonal offshoots of staple fragrances, Acqua di Parma has stuck to its guns, producing classic fragrances for high-end clients. It is retailed in 33 countries but a limited distribution prevents it becoming mass market. Although Scarpa is busy making it a global player, she insists that it will continue operating at the exclusive end of the market.
"We move at our own speed and are not attracted by crazy ideas or launching new products every year. We want to work on loyalty so it does not matter about the fast-moving goods market and that is even more important during a crisis because now is the time people look for real value and are therefore less attracted by novelties," says Scarpa of the company that until last year was growing an average of 25 per cent annually. In 2008, it grew 12 per cent but this year looks set to be nearer five or six per cent.
Scarpa also admits that different fragrances appeal to different markets, with Middle Eastern consumers perhaps not surprisingly preferring strong, long-lasting blends. The region currently makes up three per cent of the company's business.
Everything is sourced and produced in Italy, which Scarpa says is vital for the heritage and integrity of the product. All the packaging is also handmade and to this day retains its traditional yellow hue and round bottles.
"We are still a niche brand. We are not a show-off or fashion brand but one of consistency and quality and our customers know the difference between us and commercial brands. They are very loyal so they don't just buy the 50ml or 100ml fragrance, they buy the whole line."
But despite its rich history, Acqua di Parma has not been without its problems. Having launched in 1916 with The Colonia, intended to scent the hankerchiefs of elegant men, made in a tiny laboratory in Parma, the company became the fragrance for the rich and famous. Hollywood A-listers such as Cary Grant and David Niven propelled it to the highest echelons of the perfume industry but its success was not to last.
The 1960s marked a turning point for the Milan-based company as the high price tags became more of a barrier than an aspiration but Scarpa is philosophical about them now.
"The brand disappeared because it was family owned and [the family was] not interested in developing it. There was competition and they were not able to manage it," she says.
It was rescued in the nineties by three powerful Italian businessmen who all had a fondness for the classic scent – Tod's owner Diego Della Vale, Luca Montezemolo of Ferrari, and Paolo Borgomanero, a shareholder of La Perla. The trio sought to grow the business through creating new lines and managed to turn it around in a relatively short space of time. In 2001, LVMH bought a 50 per cent stake, acquiring the remaining half two years later, making it part of the worldwide powerhouse.
Thankfully its celebrity fans have returned, with Scarpa reporting the likes of the Beckhams, Jude Law and Elton John all favouring the colognes. "It's not just a fragrance, it's a way of life," says the Milan resident.
With LVMH, the company launched the Blu Mediterraneo brand and extended the product line into towels and leather goods. "The link to the tailoring and fashion industries was still strong so they wanted to build on it to make it a complete lifestyle brand but perfume still makes up 90 per cent of the business," Scarpa says.
"But LVMH is the leader in the world of cosmetics. It has everything you need and the most important: a distribution network. We can attack the world as LVMH whereas before we were only in Italy, the US and UK."
Even as the company entered into the 21st century a major piece of the jigsaw was missing; despite women wearing the men's cologne, Acqua di Parma did not actively court the fair sex until 2003. They are due to launch their second women's fragrance this year. "Our female customers asked for a fragrance so we needed to create one," says Scarpa.
The move also opens the door for more women to be involved in the brand, which now includes candles, room sprays and bathrobes in its portfolio.
"People aspire to an upper-class scent. We are building a club for our VIP clients through the web. Our relationship with our customers is very important and that is why we are sure we're on the right track."
Other historic Perfume Houses
Guerlain
The House of Guerlain was owned and run by the family from its inception in 1828 until 1994 when it, like Acqua di Parma, was bought out by the LVMH group. After Pierre-François Pascal Guerlain opened his first store in Paris, the company was run by four generations of the family until the buyout. It remains one of the few houses to exist solely on perfumes, rather than fashion like Chanel and Gucci.
Caron
This Parisian perfumerie has somewhat of a chequered past; established in 1904 by Ernest Daltroff, the Frenchman fled to the United States to escape persecution in the 1940s, leaving the house to his artistic advisor and muse, Félicie Wanpouille, who ran Caron until she died in 1967. The company was taken over by Patrick Ales in 1998, who shares Daltroff's love and roses. There are now 35 scents in the collection.
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