As their turnover rose by 18% in 2018, the TechnicoFlor group can boast strong performance, despite a tense situation on the perfume raw material market. “We managed to keep up our growth pace. But the pressure on the price of raw materials compelled us to make huge efforts. We had to swell our lead-time inventory and reduce our margins,” explains General Manager Patrice Rouan.
To enhance its growth, the perfume house based near Marseille, in the south of France, benefits both from the strong growth of many Asian markets and a solid presence in the Middle East. Today, 75% of TechnicoFlor’s turnover is achieved outside France. The group has four production sites around the world, in Marseille (France), Shanghai (China), Miami (Florida, USA), and Jakarta (Indonesia), for a total capacity of about 2,750 tonnes per yearé. They also count business offices in Dubai and Singapore. Asia accounts for about 40% of total sales, and the Middle East and Africa region, 15% to 20%. Lastly, the company benefits from a consolidated presence in Russia and a few countries in Europe and central Asia.
“Ever since the company was founded in 1982, we have aimed to develop our presence on the global level, by entering multiple markets. The idea was to accelerate our return on investment, while limiting risks,” recalls Patrice Rouan. To him, the company’s development potential is still huge. “In the short and medium term, we intend to enter new major markets, like Brazil and India, and to strengthen our foothold in areas offering a strong growth potential, like China and the US. Here and there, our development may involve acquisitions or alliances.”
As regards North America, the company is about to restructure its business to secure a commercial presence in the New York City region by 2020.
Naturalness, a real asset
TechnicoFlor, whose motto is Creating is our Nature, perceived the potential of naturalness as soon as it was created, even when it was still a niche in the perfume world. The team is committed to exceptional perfumery, protecting both the product and the environment, and intends to become an expert in this field. The Natflor range by TechnicoFlor – 100% natural, Cosmos-compliant perfumes – has already become a reference for their customers.
Meanwhile, to ensure both the continuity and quality of natural raw material supplies and a fair income for producers, the group developed a sustainable patchouli supply chain in Indonesia. And they are about to do the same with ylang-ylang in Madagascar.
While the natural market is booming, TechnicoFlor benefits from a pioneering position on this segment. “We aim to offer natural perfumes with absolute creativity and quality, while protecting both producers and the environment. We offer a very wide palette, with a great variety of essential oils and isolates. Today, thanks to this diversity of raw materials and to the talent of our committed perfumers, we can create almost without any limits, including notes that would surprise you, like ‘100% natural gourmand notes’”, highlights Caroline Catherine, Development Director for the European market.
The breadth of their portfolio of olfactory creations and natural raw materials helped TechnicoFlor seduce many of the greatest names in perfumes and cosmetics, with customers such as Unilever, Nuxe (both the Nuxe and Bio Beauté by Nuxe ranges), LVMH, as well as niche players, like luxury perfume house Ormaie Paris. “Every year, we develop creative books for various product categories. This way, we can make multiple suggestions, innovate, and keep inspiring both our perfumers and customers,” emphasizes Marketing Director Pauline Vesque.
To maintain their lead in the field of naturalness, TechnicoFlor is considering an external growth operation in France in 2019. “We want to make strong progress on the European market and be more present for global players,” explains Patrice Rouan. They have already established contacts with operators in the French region of Grasse.
In the meantime, TechnicoFlor will launch construction works for their new France-based plant in early April. The 12-million-euro project is aimed to double the production capacity and enhance the company’s reactivity and agility for delivery lead times reduced to less than five days. To be continued!