Jan Marcel Katuin: “My objective is to identify and focus on the growth areas, and where we can best leverage the strength of our brands.”German fragrance house Mäurer & Wirtz is stepping up its focus on travel retail – and international expansion in general – as the company prepares for a new business era. That’s the message from Director International Sales Jan Marcel Katuin, who was appointed in December 2013.
The new growth strategy was highlighted earlier this year, with the opening of a 4711 shop-in-shop at Cologne Airport Terminal 1, in partnership with Gebr Heinemann. The alliance deftly underlined the importance of Mäurer & Wirtz’s flagship 4711 fragrance brand – and its historic connection to the city – where it has been produced since 1792. The scent was created by Wilhelm Muelhens from his house in the Glockengasse, numbered 4711 by the Napoleonic city administration.
“Gebr Heinemann, one of our major travel retail partners, offered us this opportunity for a concept shop at Cologne Airport, and so far it has been very well received,” Katuin told The Moodie Report. “It opened in April, and the first figures are very promising.”
The airside shop-in-shop, which covers around 100sq m, is said to deliver a “total 4711 experience”. The area includes a 1.7m counter which showcases the ingredients used in the 4711 lines; a history wall detailing the brand’s development; a back wall of 4711 Original Eau De Cologne bottles; and an interactive screen which delivers supplementary information about the brand.
Katuin acknowledged that Cologne was the ideal location for this airport debut, not just because it is the brand’s birthplace, but because of the international traffic – and subsequent consumer exposure – the location delivers.
“But we don’t see this as something that would work only in Cologne,” he underlined. “This is a concept we believe we can transfer globally in travel retail, using this shop template to generate additional sales, and to develop image and awareness.”
A bigger footprint in travel retail is a key goal within Mäurer & Wirtz’s wider objective to accelerate its international development. “Our home base has always been – and will remain – in Germany, but as so many other companies have done, we need to increase the international share of our business,” Katuin explained. “That expansion has already begun. My objective is to identify and focus on the growth areas, and where we can best leverage the strength of our brands. Travel retail is a major part of this concept.”
The 4711 shop-in-shop at Cologne Airport showcases the Original Eau de Cologne, the 4711 Nouveau Cologne and the new 4711 Wunderwasser fragranceHe added: “Our assortment contains a wide variety of brands, which makes it very suitable for international implementation. In addition, we hope to capitalise on the current trend for consumers seeking out brands which have a long heritage.”
Going forward, Mäurer & Wirtz’s product focus will be three pronged. “As you would expect, 4711 is a core element,” noted Katuin, “and the introduction of 4711 Wunderwassser has been a huge boost to the portfolio….We introduced it in April and it is already selling very well. The feedback at Cologne Airport has been overwhelming; we are now rolling out the concept to other locations worldwide.”
As previously reported, 4711 Wunderwasser is a unisex fragrance that is presented in different shaped ‘male and female’ flacons, in varying shades of blue. The line includes a shower gel, deodorant and body lotion. The collection is targeted at a younger demographic, aged from 20 to around 30 years old.
Another pillar for Mäurer & Wirtz is its premium 4711 Acqua Colonia collectionAnother pillar for Mäurer & Wirtz is its 4711 Acqua Colonia portfolio. “We are working hard to promote the more premium positioning of this collection,” Katuin confirmed, “and have expanded the body care element of this range, to emphasise the idea of an ‘at-home spa’, where consumers can use these products to relax and escape from their busy schedules.”
The second product area for Mäurer & Wirtz is its so-called Beauty brands, within which the Betty Barclay fragrance franchise is key. “We have had terrific results with Betty Barclay Tender Blossom, launched last year; it also won several prizes,” Katuin noted. “More recently we have introduced Betty Barclay Precious Moments. The first sell-in, and sell-out results, are very promising.”
The third key pillar for Mäurer & Wirtz in travel retail is the prestige Baldessarini business, the license for which was acquired from Procter & Gamble in 2012.
“This is a very exciting brand, strong in Germany because of its heritage, but well known in other parts of Europe and Asia Pacific too,” noted Katuin. “Looking ahead we are confident that we can significantly increase its penetration.”
Mäurer & Wirtz has earmarked its Betty Barclay and Baldessarini brands as key growth drivers To do that, Mäurer & Wirtz is targeting the inflight sector, in addition to airports. “We already have some key listings, onboard Lufthansa and Germanwings, for example,” Katuin revealed. “But this year we are hoping to make a breakthrough with some other major airlines, across our portfolio.”
In geographic terms, aside from its home market of Germany, within Europe Mäurer & Wirtz is targeting France, the UK and Italy for incremental growth.
“We also want to build on our strong position in the Russian market, with Baldessarini, Betty Barclay and our s.Oliver brands,” Katuin noted. “But Asia Pacific is really the area where we think we can make some significant progress in the next two to three years.”
Asia Pacific’s beauty business is spearheaded by skincare rather than fragrance – an area where Mäurer & Wirtz is not, to date, well represented. Is a diversification into the treatment sector likely?
“We are continuously looking at possible additions to our company portfolio,” Katuin responded. “We keep a very close eye on trends and what is going on in the market. Our core competence is fragrance but we are always eager to capitalise on new opportunities.”
That includes monitoring prospects elsewhere in the world. Katuin concluded: “We will not forget Latin America – a strong fragrance market – but we need to prioritise. If the right opportunities emerge there we will pursue them but right now that region requires resources which I would rather allocate to other projects.”
