P&G Prestige Products (Switzerland)


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P&G Prestige Products is the fine fragrance and cosmetics division of packaged goods giant Procter & Gamble. With twin headquarters in New York and Geneva, the business manages a large portfolio of well-known luxury and prestige fragrance brands, mostly under license. Key brands include Hugo Boss, Gucci, Dolce & Gabbana and Dunhill. The business was formed in 2005 from the merger of Cosmopolitan Cosmetics, previously a division of Wella, with P&G's existing worldwide fragrance business. Now ranked #2 behind L'Oreal, the group has set its sights on overtaking L'Oreal to become the global #1. The group has often been identified by analysts as the potential buyer of smaller fragrance-led marketers such as Estee Lauder or Clarins

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P&G Prestige Products
47, Route de Saint-Georges
1213 Petit-Lancy 1, Geneva
Switzerland
Tel: +41 22 709 6111
P&G Prestige Products Inc
909 3rd Avenue
New York, NY 10022
United States
Tel +1 212 980 6400

Brands & Activities

P&G's fine fragrance business is led by seven so-called "thrust" brands, divided into two product groups of Prestige and Luxury. The Luxury portfolio is led by Hugo Boss, also the group's single biggest fragrance brand. Euromonitor & Sanford Bernstein estimated sales of $593m in 2013. There are three main fragrance families: the more formal and sophisticated Boss range (fronted by brand ambassadors Gwynneth Paltrow and Ryan Reynolds), relaxed and urban Boss Orange (represented by Orlando Bloom), and funky, clubby Hugo (with Jared Leto). Close behind is Dolce & Gabbana, for which P&G secured the fragrance and cosmetics license in summer 2006. Ambassadors include Scarlett Johannson and supermodel David Gandy. Combined sales were around $477m in 2013. Lacoste fragrances have their strongest following in France and other continental European markets ($122m), while Dunhill fragrances do best in the US and Asia.

The Prestige portfolio is led by Gucci (sales of $316m in 2013), with support from Escada and Rochas ($49m and $42m respectively). Other products include Anna Sui, Jean Patou and a fragrance range branded to singer Christina Aguilera. Among more recent additions to the brand portfolio was the license to produce the first James Bond 007 fragrance, launched in the second half of 2012 to tie in with the 50th anniversary of the film series and the release of Skyfall. In Europe P&G also manages a few local jewels including one with cashmere designer Laura Biagiotti (mainly in Italy, sales of $42m), Bruno Banani (in Germany, sales of $22m) Mexx (sales of $58m), Puma (sales of $62m) and Naomi Campbell (mainly in Central Europe). These are all grouped under the heading of lifestyle & celebrity brands. In summer 2013, P&G signed British designer Stella McCartney following the termination of her licensing agreement with L'Oreal, and inked a new agreement with the Alexander McQueen label, whose previous fragrance line was discontinued by L'Oreal in 2008.

Recent stories from Adbrands Weekly Update:

Adbrands Weekly Update 20th Jun 2013: Ads of the Week "Street Of Dreams".  The ad for P&G's Dolce&Gabbana: The One fragrance offers a dream team combining brand ambassadors Scarlett Johansson and Matthew McConaughey with director Martin Scorsese. The result is a charm; as artificial as any movie you've ever seen, yet you could almost believe it was a real snapshot of a moment in each actor's off-screen life. 

Adbrands Weekly Update 20th Jun 2013: Procter & Gamble's prestige fragrances division signed up British fashion designer Stella McCartney as well as the Alexander McQueen label. McCartney's previous licensing deal with L'Oreal was terminated this month "by mutual consent", and L'Oreal pulled the plug on an earlier line of McQueen fragrances in 2008. 

More from Adbrands Weekly Update

P&G Prestige also now manages ultra-luxury skincare brand SK-II, sales of which broke through the $1bn barrier for the first time in 2012. (Euromonitor/Sanford Bernstein estimated $935m for 2013). Originally marketed in Asia, it has gradually expanded into other regions, including the US from 2004, and Europe in 2005. 

The group has pruned its portfolio since 2005 to focus on what it described as "brands with big global potential, regional star brands or potential growth engines". As a result numerous licenses have been dropped or discontinued, including Helmut Lang, Ellen Tracy, Toni & Tina, Trussardi, Charles Jourdan and Yohji Yamamoto. Old-fashioned British brand Yardley was sold in 2005 to Lornamead; long-established German favourite 4711 was sold to Maurer & Wirtz in 2006. Other licenses including Cindy Crawford, Baldessarini and Ghost were quietly surrendered between 2005 and 2010. For several years, P&G also handled US distribution of the Burberry fragrance range on behalf of Inter Parfums of Europe. That license transferred to Clarins USA during 2010. At around the same time, the Valentino license was shifted from P&G to Puig.

Management

Joanne Crewes succeeded Patrice Louvet as global president of P&G Prestige Products in 2011. She is based out of P&G's Asia Pacific HQ in Singapore. Donald Loftus retired as president & CEO of P&G Prestige Products in the US at the beginning of 2013, and was succeeded by Dennis Curran. 

In Geneva, executives include Bill Brace (VP, global market development & operations), Michel Lambert (global director, media planning & operations), Luigi Feola (VP & GM, global luxury brands), Carla Luini (VP & GM, global fashion brands), Jean-Paul Jansen (global marketing director & global brand operations leader), Guillaume Tardy (director, global Hugo Boss fragrances), Mary Carmen Gasco-Buisson (associate marketing director, Hugo Boss fragrances), Marco Parsiegla (senior managing director, D&G Beauty), Paolo Gialdi (senior brand manager D&G Fragrances), Claudia Marcocci (senior brand manager, D&G fragrances), Jonathan Brinbaum (group manager, D&G Beauty), Nathalie Erazmus (brand manager, D&G cosmetics), Laurent Perves (global brand manager, Gucci Fragrances), Tobias Darnstaedt (global brand manager, Gucci Fragrances), Julie Gosalvez (global brand manager, Gucci Fragrances design), Petronille Didelot (senior global brand manager, Gucci Fragrances), Ruby Dhillon (global marketing manager, luxury beauty), Melanie Montel (marketing group manager, Rochas), 

In New York, executives include Kate Voyten (VP & commercial leader, SK-II & The Art Of Shaving), Barbara Luisi (VP, sales) and Evelyn Noether (director, creative services). 

Background

Procter & Gamble's current fragrance portfolio has been accumulated gradually as a result of a series of acquisitions over several years since 1990. The group made its first moves into the beauty and cosmetics sector in the late 1980s with the acquisition of Richardson-Vicks, which added Pantene and what is now Olay to the group. Further cosmetics purchases followed, but the group's first real step into fragrance came in 1990 with the acquisition of Shulton, which controlled mass-market men's aftershave Old Spice and other products. 

Additional brands joined the group over the next few years, some as a by-product of other acquisitions. For example, German beauty company Eurocos, which P&G acquired from Revlon in 1992, managed the fragrance licenses for Hugo Boss and Laura Biagiotti as well as Ellen Betrix cosmetics. Other fragrance brands were specifically acquired, such as Giorgio Beverly Hills, acquired from Avon in 1994; famed French perfume house Jean Patou, acquired in 2001, along with its subsidiary brand Lacoste; and the Valentino license, acquired from Unilever in 2003 (but later surrendered to Puig). 

Yet although several of these acquisitions brought with them a European management team experienced in fine fragrance sales and distribution, P&G lacked confidence in the US outside of the mass-market. As a result, sales and distribution of the group's prestige fragrances in the US were outsourced in 1999 to Clarins. P&G's dilemma was solved by the acquisition of Cosmopolitan Cosmetics as part of Wella. This business, which already handled several prestige products in the US, including Gucci, had its own North American management structure. As a result the six year contract with Clarins was allowed to lapse at the end of 2005, at which point P&G regained US distribution of Giorgio, Hugo Boss, Jean Patou, Lacoste and Valentino. Cosmopolitan also brought with it the Rochas couture fashion business. This was eventually closed in 2006.

Patrice Louvet replaced Hartwig Langer as global president of P&G Prestige Products in 2009, reporting to Ed Shirley, vice chairman for global beauty. Louvet was in turn succeeded in July 2011 by Joanne Crewes.

Last full revision 23rd May 2013


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