“It’s kind of an open-heart surgery: The brand is full of history and there’s a lot of sensitivities and you need to be a very good surgeon in order to bring things to the next stage,” said Marco Parsiegla, chief executive officer of Oman-based luxury fragrance house Amouage, which is marking its 40th anniversary this year.
A veteran of the industry, whose experience includes global vice president of Procter & Gamble’s prestige division, Parsiegla has been proving to have good nerves and clear thinking in bringing the brand new life since he joined in 2019, in tandem with the appointment of Renaud Salmon as chief creative officer.
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The duo opened a new chapter at the company with the goal to make it bloom internationally and attract the next generation of fragrance lovers as part of its clientele, whose core is made of expert consumers buying more than six products per year, and connoisseurs.
The first strategy Parsiegla outlined to this end included the in-house integration of all processes, epitomized by the company’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 year.
“It’s really authenticity what consumers are looking for and it’s wonderful because nowadays people can easily understand what is a made-up story and what’s actually real,” said Parsiegla. He underscored that the project was all about “securing the quality [of the brand], having the ownership throughout and not being secretive about it” to establish a transparent dialogue with the audience.
“I also think it is very important to give a brand a home, that’s what I learned working for brands,” he continued, recalling his experience with Dolce & Gabbana and Sicily. “You need to give soil to a brand and for us that is Oman, which is why we produce everything here.”
Distribution has also played a key role in elevating Amouage. Aiming to build a premium network, Parsiegla drastically reduced Amouage’s 6,000 points of sale to less than 2,000 doors.
Along with new products and a revamped visual identity developed under Salmon’s guidance, the strategy has been paying off. In the first nine months of 2023, sales increased 21 percent to $158 million compared to the same period last year, with those in the third quarter up 32 percent versus the same period in 2022, specifically. Parsiegla projected a 25 percent growth for the end of the year, which “will give us a new record result, far exceeding the $200 million mark.”
So far in 2023, sales at the 12 Amouage boutiques worldwide were up 23 percent versus last year, boosted also by the retail concept the brand unveiled at the Mall of Oman in 2022 and rolled out at its existing unit at Dubai Mall and at the Muscat airport.
The interior concept telegraphs the brand’s move “from something very transactional to creating a unique experience,” said Salmon, by resembling more an art gallery rather than a retail space. Each location has been conceived to nod to Omani natural elements in a modern and arty way, like desert dunes or eclipses.
The format will soon land in the U.S. as Amouage will open its first monobrand store this month at the American Dream complex in New Jersey, signaling the company’s serious intention for the market that posted a 21 percent increase in sales in the first nine months. The company has also created an Amouage Americas business unit to get more control over distribution, reducing its presence in smaller specialty shops in favor of department stores such as Neiman Marcus, Bergdorf Goodman and Bloomingdale’s.
Growing the business in China and Saudi Arabia is also a top priority going forward. By the end of the year, Amouage will open its first pop-up shop in Shanghai, giving it a physical presence in the country, where it has thus far had only a successful digital presence for the past two years. Incidentally, Parsiegla highlighted that those digital learnings will be soon deployed to revamp the brand’s e-commerce in the U.S., too, as he sees further potential in the online channel, along with Amouage’s direct stores and travel retail.
In terms of other key geographies, in the first 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.
Product-wise, the main driver of the brand’s performance is Guidance, which is the top seller at more than 100 flacons per day, according to Parsiegla.
“More 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 part of the anniversary’s celebrations, Amouage will release the Dia 40 Woman and Jubilation 40 Man scents as part of its Exceptional Extraits line. In addition, Amouage Gold, the house’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.
