Inter Parfums USA inks exclusive licensing for Shanghai Tang Fragrances
The agreement is a 12 year exclusive worldwide license and was signed at the beginning of July, with the first fragrances expected to appear on store shelves in the Spring of 2014.
The deal will license Inter Parfums USA Hong Kong Limited to create, produce and distribute perfumes that bear the iconic luxury brand name.
Shanghai Tang was founded in Hong Kong in 1994 and has since been established as one of the leading luxury Chinese brands to emerge after the territory was given independence from the UK in 1997.
Shanghai Tang now one of the leading China luxury brands
It has now grown into a luxury brand with international recognition and distribution, combining modern chic with a more traditional style that reflects the fast-paced and fashionable Shanghai of the 1920s and 30s.
“China is a strategic priority for Inter Parfums, and as this is an important new relationship for us we have established a new subsidiary in Hong Kong, Inter Parfums USA Hong Kong Limited, to manage the global operations of the Shanghai Tang brand,” Jean Madar, chairman and CEO of Inter Parfums, said.
“We believe that Shanghai Tang is a truly unique brand with exceptional potential to become a global beauty brand in the luxury segment, and we are committed to making this a highly successful venture.”
New license will make up for loss of Burberry
Back in April the company posted a big hike in its first quarter sales on the back of a particularly strong performance in the European market, as the door was finally closed on its mainstay Burberry licensing agreement.
The results for the quarter ending March 31st showed that global sales grew by 29.3 percent to $213.8m, compared to $165.4m in the corresponding period last year.
Likewise, this sales figure was only minimally impacted by foreign currency exchange rates, which were up 29.4 percent when the translation was taken into account.
Last July Burberry confirmed that it was buying back the rights to the agreement for €181m ($220m), a sum that has enabled Inter Parfums to reinvest in the acquisition of Alfred Dunhill fragrances.
However, it is still believed that the business will be impacted in the short- to mid-term given that Burberry sales have traditionally made up approximately 60 percent of Inter Parfums’ annual revenues.