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EUROFRAGANCE CLOSES OUT 2019 WITH STRONG 15 PERCENT ORGANIC GROWTH, STARTS 2020 FOCUSED ON NEW BUSINESS OPPORTUNITIES AND EXPANDED SCOPE
EUROFRAGANCE CLOSES OUT 2019 WITH STRONG 15 PERCENT ORGANIC GROWTH, STARTS 2020 FOCUSED ON NEW BUSINESS OPPORTUNITIES AND EXPANDED SCOPE

In Corporate
by Eurofragance

Eurofragance
 
Eurofragance, the Spanish fragrance creation company, closed out 2019 with a turnover of 90 million euros, 15 percent higher than the previous financial year, and a record for growth in recent years. These figures confirm the success of Eurofragance’s strategic growth plan led by Laurent Mercier, company CEO, focusing on profitability and global diversification in order to offer solutions that fulfill its partners’ and market needs.

In 2019 Eurofragance maintained its’ ambitious strategic plan by completing its expansion into the key markets of China while consolidating its presence in India, with the opening affiliates in Shanghai and Mumbai. “In both countries, we have opted for a local production model, supported by our partnership with two very trusted and experienced partners, enabling us to provide quick and agile responses for our clients locally,” Mercier explains. “Neither market is new to us, as we have been working with customers and sourcing raw materials in both for many years, so the transition to a full sales and marketing operation was a logical next step.”

Elsewhere Eurofragance’s growth in different markets continues, with the company bolstering its presence in Latin America, Asia-Pacific, Europe, Africa (mainly Maghreb countries) and, especially, Turkey. In addition, Eurofragance continues its market leading position in the Gulf and Middle East region, with growth of 10 percent, thanks amongst others to the recovery of the Saudi Arabian economy.

The company has continued to invest in the on-going optimization of global facilities and internal processes. Most importantly consolidated increased automation for optimal performance in its Singapore factory and the renovation of the whole plant in Mexico. Mercier points out that “2019 has been a key year in terms of both company expansion and process optimization in all branches, supported by a production increase of over 30 percent in the Singapore factory.”

Meanwhile, investment in talent remains one of the pillars of the company’s growth strategy. In 2019, a number of new positions were created internationally in all function areas to support this significant expansion.


Eurofragance’s plans for 2020

In 2020, due to the global impact of COVID-19 and the resulting business environment, the company has identified new business opportunities that are already delivering a positive impact in the Home Care and Body Care categories. Eurofragance has noticed a clear trend towards hygiene products and a wide range of new opportunities have opened up. For this reason, it is paramount for the company to remain in constant contact with clients in order to adapt to the market’s new emerging needs and offer a quick, effective response.

The company also continues to demonstrate its ability to adapt through the development of a new business model for the US market. Mercier notes that, “With a view to reinventing ourselves constantly, we have decided to cease operations in Atlanta, GA. Today, we have an agreement with a highly reputable renowned North American based manufacturing partner, which allows us to offer a more efficient service and maintain operating costs at an optimal level.”

In its 2020–2023 strategic plan, Eurofragance is backing sustainability as one of its key pillars and has created a ‘Committee for Sustainability,’ responsible for designing and implementing a plan throughout the organization. “Since 2018, we have been working on this project to collect ideas to be transformed into concrete actions and get employees involved, as sustainability has to begin in-house,” Mercier says.

Eurofragance is also working on digital transformation and how this will impact our industry and day to day ways of working. “This new reality is speeding up the digitalization of all industries. To this end, we are working together with our customers to help them grow,” Mercier adds. In the 2020–2023 strategic plan, the company will also be increasing its production capacity and optimize its factories performance, thus adapting to the new normal.