Indie beauty conversation with Amouage

31 Aug 2021 --- As the Oman-based premium fragrance house Amouage moves into the niche perfumery market in the US and China, we sat down virtually with CEO Marco Parsiegla to talk about the company, its bold expansion plans and the biggest challenges behind achieving them.

Can you tell me about your inspiration behind launching Amouage?

Click to EnlargeMarco Parsiegla is targeting the US and China as Amouage seeks to grow the brand from its homeland in Oman. Source: Amouage.Amouage is an independent, international luxury fragrance house with credible, long-lasting and innovative fragrances that pay tribute to the art of fine fragrance making. Born in the Sultanate of Oman, we feel we have a significant role to play in reflecting the richness and generosity of the country, taking the passion and long-standing history of fragrances from this part of the globe to the rest of the world. My aim is to inject diversity and international experience into the house’s legacy, adding further layers to our journey. As the CEO, I am looking to identify the right business opportunities, including geographical expansion, and seizing these when the time is right.

Amouage has redefined itself over the past two years. We have put in place a team of senior experienced professionals and developed a new strategy, which includes our digital transformation and an ambitious expansion. We opened a new hub in Dubai to serve as a platform for international expansion, paving the way for further growth. Amouage’s business is seeing exceptionally strong momentum with new creations such as the Renaissance Collection, and recent innovations, Boundless and Material, which have enabled us to stay on course with our plans despite the pandemic.

The US represents the biggest fragrance market in the world. In June, we decided to officially launch Amouage Americas, step changing the presence of our house in the US. Our new office is established in the heart of the fashion district on Broadway in New York. We directly partner with top US retailers of ultra-niche perfumes, such as Nordstrom, Bergdorf Goodman, Neiman Marcus, Bloomingdale’s and Saks Fifth Avenue, where we are opening permanent and temporary shop installations. We are also setting up a fulfillment center to directly serve e-commerce from the US. We have a roadmap across the country for the upcoming months, aiming for the bold objective to make the US our second-biggest market.

What was missing from the niche fragrance market that you sought to fill with Amouage?

Interestingly, while in the past Amouage had only a very limited distribution in the US it was one of the most-searched-for brands online, to the extent that at one of the US department store chains Amouage was the most searched for brand despite not being distributed. This clearly opened the doors to work with our new partners to serve this consumer demand. It is a demand that is fueled by Amouage’s global reputation for bringing innovative modernity and true artistry to all its creations. A demand thanks to our bold signature fragrances that reflects a richness and long-lastingness through potent, precious and personal product offerings. 

Our ambition in the US is to further accelerate this demand by addressing the consumer quest for artisanal fragrances. Amouage’s unique vertically integrated organization is therefore key. We handle all core operations in-house; all our ingredients are mixed, aged and bottled directly at the Amouage Manufacturer in Oman, reaching an unprecedented level of product integrity and quality.

What are consumers demanding from fragrances today?

There is an increased need for substance and depth, genuineness and openness. Consumers are becoming more environmentally and socially aware, and as a result are becoming more critical of their brand choices and associations. They are looking for brands that resonate with their principles, brands that are authentic and that have a story. What’s more, they are much more informed. People aren’t just interested in the end product anymore, they are paying attention to ingredients, the supply chain and the company’s reputation among workers. 

Niche fragrances are expected to play an important role in key markets around the world. There is an increasing appetite for unique brands. And there is one particular segment that niche perfumes especially represent that is growing: high-performing perfumes, which are more potent and longer-lasting, and therefore perfumes that are more valuable. The fastest-growing segment of the market is the high oil concentration Eau De Parfums (EDPs) and Extraits, as well as even higher oil concentration products.

How is Amouage responding to these demands?

Amouage is known for leading the innovation in perfumery and doing so building on its authenticity and profound respect for the craft of perfumery. We are rooted in a rich history; our production is local, traditional and transparent; our ingredients are of the highest quality; and we feel strongly about sustainable sourcing. This is all very much infused in our fragrances and I think that is what connects our clients with us so deeply.

Amouage is known for leading the innovation in perfumery and doing so building on its authenticity and profound respect for the craft of perfumery. We are rooted in a rich history; our production is local, traditional and transparent; our ingredients are of the highest quality; and we feel strongly about sustainable sourcing. This is all very much infused in our fragrances and I think that is what connects our clients with us so deeply.

Click to EnlargeSource: Amouage.Our collections are positioned on the higher end of the concentration spectrum. To give you an example, conventionally, Eau de Parfum has an oil concentration of between 12% and 20%, but ours vary between 20% and 30%. Pushing the boundaries of fragrance creation even further, we also created an Exceptional Extrait in 2020 called Interlude 53. This extrait variation took one of our global bestsellers, Interlude, and now contains a 53% oil concentration that was aged for up to six months - a rare undertaking in the modern fragrance industry. The consumers responded unexpectedly well; our first batches sold out in record time. We are currently in the process of aging our third batch.

What do you want consumers to see and understand when they come to Amouage?

Amouage is an icon in the perfumery world, having built a coveted legacy for almost 40 years. As one of the top three players in the ultra-niche segment, we create unique and modern perfumes that speak of unparalleled craftsmanship, quality and creative integrity, but that are inspired by the exceptional heritage, traditions and majesty of Oman. 

We consider ourselves an ambassador of our culture, one that is reflecting generosity and richness. This is mirrored in how we go about creating our fragrances. Our formulas and ingredients have always been the finest and most precious, and this continues to this day. For example, one of our most recent fragrances, Material, is the second most expensive oil we have ever used. We work with the best perfumers in the world and we put no limits on their creative freedom or choice of materials. We have worked with 32 perfumers to date, 10 of who are master perfumers - we are the only fragrance in the world to do that. When we say that our fragrances are born out of a proud legacy and a sincere passion, we wholeheartedly mean that.

What are the greatest challenges to achieving your vision for fragrance?

One of our greatest challenges is to keep innovating in perfumery. We continuously aim to push the boundaries of perfume making. While much has already been achieved, we still find ways to bring the art of perfumery to a new level. We look at perfume creation, at the maceration and maturation. We also explore increasing oil concentrations to create richer, longer-lasting and balanced perfumes. 

At the same time, we never compromise on quality and creative integrity. It is not always easy; from the availability of ingredients to divergent international regulations, shifting consumer demand to logistics. 

Why is China such a key market for Amouage?

Click to EnlargeSource: Amouage.China represents a giant market and is home to an entire new generation of young, expressive, and financially independent consumers representing the untapped potential for niche luxury brands. Amouage will cater to the country’s contemporary fragrance community and the growing appetite for artisanal fragrances. 

Take for example our Epic Woman perfume, inspired by the Silk Road trade route, which consistently ranks in the top three of the niche fragrance category on Nosetime, an online fragrance platform in China. China is already one of our top 10 markets even though we only launched there this year. At the moment we are focused on the digital sphere, but there are plans to go into brick and mortar in the next phase. 

What are the greatest opportunities that you foresee?

There are plenty. There is still a lot of demand in the global market that we have yet to meet, especially among the younger segment. And, as the digital world continues to grow, there is great potential there too.

What are your short- and long-term hopes and goals for Amouage in terms of market penetration and growth? 

In the short term, we will continue to strengthen our online presence, deepen the bond with our clients and reach out to new ones. We will continue to push the boundaries of fragrance creation with new launches, but more importantly we will build on our position as an ambassador of Oman, bringing the passion and long-standing history of fragrances from this part of the globe to the world. 

We will accelerate the Amouage retail experience, both online and offline, with the rollout of a new generation of experiential shopping, with a new brand identity deployed to each boutique that is uniquely relevant to the location where it opens. Plus, we will continue rolling out our brick-and-mortar store expansion in the US and also in China. We are on the brink of opening a new e-commerce fulfillment platform to cater to the biggest share of our six-fold increase in demand online, namely in the US. Further openings will follow suit with key retailers and in key US cities. 

Longer term, we have plans to expand into new markets or step change our presence in Asia Pacific, Middle East, Africa, and Europe. We want to double the business in four years. It is all part of our wider vision to continue our year-on-year growth trajectory, with an ambition to become the number one independent ultra-premium beauty house in the world. 

By Natasha Spencer-Jolliffe, BPC Insights Senior Journalist