Page 77 - EM - Export Magazine Perfumery Edition

INTERVIEW

difference is in handling a product in terms of marketing
positioning. In short, a sensible pricing policy has to be
applied, with the same price for all.

EM: How important is it that the distributor makes
the decisions together with the brand?
CG: The work of distributing a brand is done by four
hands: 50% is up to the brand, 50% up to the distributor.
First of all, we try to give value to the brand; together,
once the channel has been chosen, the area is studied
and an adequate price positioning is opted for, trying to
be as correct as possible. On the shelf, the price has to be
recognized by the customer as a correct price. If not, then
everything is compromised.

EM: They say that the brands that are successful in
italy have excellent possibilities of being successful
on other markets. is that true?
CG: It has to be said first that the buying attitude changes
according to the area, in Italy we go from Africa to the Alps
– and we have to bear in mind thv at Italian consumers
are particularly demanding, for them both the brand and
the place where they choose to purchase it are important.
The advent of e-commerce has completely overturned
some purchasing habits, as paradoxically customers can
obtain complete information on the Internet, sometimes
more details than by going to a store. We are witnessing
an epochal change.

EM: How is retail responding?
CG: Retail, and the figures are evidence, has an uncertain
response. Think about the crowding of brands at any point
of sale: lots of products, or lots of manufacturers, lots
EM: The number of distributors in italy has fallen in of formulators. The buyers are inundated by proposals,
time. Is this due to the difficulties of the market? each of which is more interesting than the other, mostly
CG: It’s true, however, I have always like the most difficult all excellent, and choices have to be made. Statistics
challenges. There are channels that have been progressing, show that 80% of the brands put on to the market
such as the mass market, others in regression, such as disappear after two years. The existing brands, including
perfumeries, for at least 20 years. If it is true that the it those proposed by multinational corporations, set up
is the market that decides the dimension of the channel, a barrier to the entrance of new brands, although they
this means that great transformations are awaiting us; are innovative and interesting. This is how battles begin,
the perfumeries of great excellence will survive, capable almost never with equal weapons and with promotional
of guaranteeing an optimum service. The pharmacy has campaigns and shelves on fine view.
also started to change concerning the sales of cosmetics,
especially with the entrance of some large foreign groups. EM: what is ‘luxury’ for you?
I have always been an advocate of multi-channels: there CG: Luxury is when you are never able to meet the
will be an adjustment and the three channels, drugstore, demand. The day when you can meet the demand, luxury
perfumery and pharmacy, will have to coexist. The will no longer exist. As we are all aiming for turnover, this
essence of multi-channels is that if a product ‘has legs’, has to be controlled, to keep that fine balance necessary to
i.e. consumers like it, it can be on different shelves; the protect the brand, in the value that has been established.

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