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2 Dec

Amouage’s CEO on Authenticity, Distribution Strategy, Next Openings –

Amouage’s CEO on Authenticity, Distribution Strategy, Next Openings –

“It’s type of an open-heart surgery: The brand is filled with history and there’s lots of sensitivities and it’s worthwhile to be a superb surgeon with the intention to bring things to the following stage,” said Marco Parsiegla, chief executive officer of Oman-based luxury fragrance house Amouage, which is marking its fortieth anniversary this yr.

A veteran of the industry, whose experience includes global vp of Procter & Gamble’s prestige division, Parsiegla has been proving to have good nerves and clear considering in bringing the brand latest life since he joined in 2019, in tandem with the appointment of Renaud Salmon as chief creative officer.

The duo opened a latest chapter at the corporate with the goal to make it bloom internationally and attract the following generation of fragrance lovers as a part of its clientele, whose core is manufactured from expert consumers buying greater than six products per yr, and connoisseurs.

The primary strategy Parsiegla outlined to this end included the in-house integration of all processes, epitomized by the corporate’s “sanctuary for creativity” in Muscat. The open-to-the-public space houses all Amouage activities, from production to creativity, attracting 15,000 visitors per yr.

Marco Parsiegla, CEO of Amouage.

Courtesy of Amouage

“It’s really authenticity what consumers are in search of and it’s wonderful because nowadays people can easily understand what’s a made-up story and what’s actually real,” said Parsiegla. He underscored that the project was all about “securing the standard [of the brand], having the ownership throughout and never being secretive about it” to ascertain a transparent dialogue with the audience.

“I also think it is vitally vital to provide a brand a house, that’s what I learned working for brands,” he continued, recalling his experience with Dolce & Gabbana and Sicily. “You could give soil to a brand and for us that’s Oman, which is why we produce all the pieces here.”

Distribution has also played a key role in elevating Amouage. Aiming to construct a premium network, Parsiegla drastically reduced Amouage’s 6,000 points of sale to lower than 2,000 doors.

Inside the Amouage store at Dubai Mall.

Contained in the Amouage store at Dubai Mall.

Courtesy of Amouage

Together with latest products and a revamped visual identity developed under Salmon’s guidance, the strategy has been paying off. In the primary nine months of 2023, sales increased 21 percent to $158 million in comparison with the identical period last yr, with those within the third quarter up 32 percent versus the identical period in 2022, specifically. Parsiegla projected a 25 percent growth for the tip of the yr, which “will give us a latest record result, far exceeding the $200 million mark.”

Thus far in 2023, sales on the 12 Amouage boutiques worldwide were up 23 percent versus last yr, boosted also by the retail concept the brand unveiled on the Mall of Oman in 2022 and rolled out at its existing unit at Dubai Mall and on the Muscat airport. 

The inside concept telegraphs the brand’s move “from something very transactional to creating a novel experience,” said Salmon, by resembling more an art gallery relatively than a retail space. Each location has been conceived to nod to Omani natural elements in a contemporary and arty way, like desert dunes or eclipses.

The Amouage store at Mall of Oman.

The Amouage store at Mall of Oman.

Courtesy of Amouage

The format will soon land within the U.S. as Amouage will open its first monobrand store this month on the American Dream complex in Recent Jersey, signaling the corporate’s serious intention for the market that posted a 21 percent increase in sales in the primary nine months. The corporate has also created an Amouage Americas business unit to get more control over distribution, reducing its presence in smaller specialty shops in favor of malls equivalent to Neiman Marcus, Bergdorf Goodman and Bloomingdale’s.

Growing the business in China and Saudi Arabia can also be a top priority going forward. By the tip of the yr, Amouage will open its first pop-up shop in Shanghai, giving it a physical presence within the country, where it has up to now had only a successful digital presence for the past two years. Incidentally, Parsiegla highlighted that those digital learnings can be soon deployed to revamp the brand’s e-commerce within the U.S., too, as he sees further potential in the net channel, together with Amouage’s direct stores and travel retail.

When it comes to other key geographies, in the primary nine months, sales in Europe were up 25 percent, with Italy, Spain and Germany being the fastest growing markets. Overall, sales in Europe account for 40 percent of total sales, followed by the Middle East and Africa at 30 percent and Asia-Pacific at 20 percent.

The Dia 40 Woman and Jubilation 40 Man fragrances by Amouage.

The Dia 40 Woman and Jubilation 40 Man fragrances by Amouage.

Courtesy of Amouage

Product-wise, the principal driver of the brand’s performance is Guidance, which is the highest seller at greater than 100 flacons per day, based on Parsiegla. 

“Greater than 40 percent of revenues come from creations Renaud has done since 2019,” he continued, praising Salmon’s work, including his lead in putting together a creative collective across different artistic fields that contribute to the brand. 

As a part of the anniversary’s celebrations, Amouage will release the Dia 40 Woman and Jubilation 40 Man scents as a part of its Exceptional Extraits line. As well as, Amouage Gold, the home’s first fragrance created by Guy Robert, has been reissued in a limited edition coming in crystal bottles and gold-pleated details, retailing at 1,750 euros for 50-ml.

The Cristal & Gold 2023 limited edition by Amouage.

The Cristal & Gold 2023 limited edition by Amouage.

Courtesy of Amouage

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