“The crisis led to changes in consumer behavior, people are increasingly more opting for our private label products. In the medium term, we want our portfolio of private labels to reach 20% of overall sales,” said Linda Alblas van den Burg, managing director of Marionnaud Perfumeries for Central Europe, who is in charge of the company’s operations in the Czech Republic, Slovakia, Poland, Hungary and Romania.
However, in the first few months of this year, amid a market recovery, clients are again turning to known brands, in a sign that the price is no longer the deciding factor when buying.
“We want to focus our attention on luxury brands, such as Chanel and Dior, because after a promising first half we have noticed people are moving from affordable products to selective brands,” adds Alblas.
Marionnaud Perfumeries has been without a boss on the Romanian market after Sorana Georgia was appointed executive manager of supermarket chain Billa in June. Sorana Georgia led operations of Marionnaud Perfumeries Romania for about a year.
Linda Alblas, who has been in charge of perfumeries in Central
and Eastern Europe since January 2009, says at present most of
Marionnaud’s private labels are skin care products, with nail
products and skin care products for men to be introduced in the
offer shortly.
Marionnaud’s clients earn average income and are aged between 20
and 50 (the average age is 35).
About two years after Ina International and Privilege International (of which France’s Marionnaud Parfumeries owns 51% and Greek businessman George Georgandas – 49%) was taken over by AS Watson through Marionnaud Germany, the rebranding process is almost over. In turn, AS Watson is part of the Hutchinson Whampoa group headquartered in Hong Kong.
Although she does not provide figures for last year’s sales, Alblas says they were slightly lower than in 2009. In 2009, the cumulated sales of Ina Center and Privilege stores amounted to EUR12.3 million, and losses to around EUR2 million.
“The first half of this year was promising and we expect a better second half. In like-for-like terms (the same number of stores), sales are on the rise.
Alblas says 2008 was the best year for the company and hopes next year will be similar.
The company did not open any store in 2010 or in the first few months of this year, but plans to open a new store in Maritimo Constanta shopping center by the end of 2011.
At present the Marionnaud chain has 32 perfumeries, after closing down 18 stores in the first quarter.
“We closed down all the stores we had in the Selgros chain because they were smaller than our current standards.”
She also says Romania is a large enough market to accommodate 100 Marionnaud stores. “In the medium and long term, the company could open 5-10 stores per year.”
(English version by Daniela Stoican; Editing by Radu Bostan)