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Interview Sisley president Philippe d’Ornano s Sisley claims it launches few products and aims for both new items and classics to contribute to sales you see what you earn, not what you lose, and what we are Are retailers ready to invest more in service? n n n losing is 1.6 million consumers in France. Even though the BAs know I think they are, but what do you call service? Chains are investing some brands are appreciated and have created a loyal clientele, they in CRM, training and digital tools in often very creative ways. But to have to follow the ongoing promotions and often have a lot of regain customer trust, they also need to invest in their team and how pressure to reach goals. they provide a customer experience in-store. In selective distribution, Instead of pushing certain brands, the retailer should propose teams make a huge difference if they are well trained, well-motivated different brands at different price points and see which one interests and have building a loyal clientele as their frst objective. They cannot the consumer. That is what traditional perfumeries used to do and is do that if they are forced to push a different brand each week, or to what is still being done in independent perfumeries in Italy, Germany push exclusive brands. or Spain, for example. What is important is to go back to basics and The question of exclusive brands is interesting. Exclusive brands can put the consumer at the center of the business. be an asset for stores, but only if they are successful by themselves, which means if customers re-purchase them. They obviously need to Is retailers’ reluctance to trade up due to consumers’ lower be presented, but if they are pushed at all costs, they become a danger purchasing power? for the retailer. It is not a problem of purchasing power. The truth is that each Retailers’ entry-price own brands have performed well and brought distribution channel wants to do something other than what its main more people into the stores. But retailers are still underperforming objective should be. For example, selective perfumeries want to do in the high end. They don’t trade up their customers enough and cheaper products, while mass distribution wants to do more expensive sometimes you have the feeling that they are tempted to trade products. The selective perfumery’s point of difference was to provide down; this would be a mistake. High-potential customers represent good advice, sell higher-end products and try to make the consumer an important business for selective perfumeries. Their number could trade up. If it forgets this, it loses its specifcity and as a result the be increased with the right work and if you are losing them it is consumer will go to other channels or even buy fewer perfumes catastrophic for the stores. and cosmetics. Unfortunately, trading up the customer [in perfumeries] is not always How do you see your internet sales developing? done effciently anymore. It is not only a lost opportunity; it is also Internet sales with our sites or with our retailers’ sites, are growing very dangerous for selective perfumery as it is losing one of the elements fast—they increased by 200% globally in 2014, and by 2017 or 2018 that distinguishes it from other distribution channels. There is a real web sales should represent close to 10% of our business. We see interest in high-quality products and if we can explain the product the internet as a complement to brick-and-mortar stores, as we sell to consumers we can widen the high-end segment of the market. products that you need to touch and smell. Although it is developing The distribution doesn’t realize to what extent it is missing a chance rapidly, e-commerce in our feld is still small compared to other sectors. to grow its business in high-end skincare and to what extent is it The internet allows consumers to get information that they don’t losing sales. always get from the sales team. 34 November-December 2015 - N°24 - BW Confidential