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Meet the Conductor—Neil Katz
By: Nancy Jeffries
Posted: September 4, 2009, from the September 2009 issue of GCI Magazine.
Neil Katz, chairman and CEO of Parlux, Inc.
page 4 of 4The Artistic Brands partnership, according to Katz, is a unique collaboration. “I don’t think any company has ever made any celebrity part and parcel of the actual collaboration,” says Katz, referring to the fact that Carter and other partners each hold stock warrants in the company and, therefore, are invested in working toward success of the collaboration and brands. Under this partnership, fragrance launches are planned for the summer of 2010—and with an eye toward expanding the consumer base. “Again, we are bringing new and diverse consumers to Parlux,” says Katz. “We believe that the implementation of this agreement, combined with the success of our core brands, will allow us to significantly increase revenues and improve our bottom line.” Katz, who takes a 360-degree view of the beauty market, noted that total estimated value of the market is $140 billion in annual sales. Of that, approximately 42% of the business s done in the U.S., an estimated $60 billion. Within the U.S. beauty market, an estimated $12 billion of it is fragrance sales—including mass market, department stores, door-to-door and perfumeries. Parlux, according to Katz, participates in the prestige segment, which represents about 25% of that $12 billion, or about $3 billion in manufacture sales. Katz notes while the company is small compared to other public companies, the business is growing and is able to move quickly, as it is a smaller company.
Further, Katz understands that as celebrity favorites increasingly capture a larger segment of the market, the unique positioning of the Artistic Brands collaboration will have significant impact. Katz sees the company as positively positioned for growth, ultimately yielding a much bigger and more profitable company. In addition, Katz acknowledged that some of the newest talents in the categories of art, music and design, are represented in the Parlux portfolio.
Taken as a whole, the Parlux portfolio has uniquely tapped into some of the key personalities of contemporary culture, bringing style, fashion, and artistic expression to an enthusiastic public.
Nancy Jeffries is a contributing editor for GCI magazine, covering the industry from her New York vantage. Jeffries has been in the publishing business for more than 20 years. Her introduction to the cosmetics and personal care industry began as editor of GCI magazine from 1997–2000. firstname.lastname@example.org