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Thursday, March 30, 2023

Giorgio by Giorgio Beverly Hills c1981

Giorgio was launched in 1981. Created by perfumer Jean-Pierre Subrenat.







Fred Hayman purchased the shop on Rodeo Drive in 1962 from then-partner George Grant, who used the name Giorgio to sell Italian knit clothes. Named Giorgio Beverly Hills, the boutique was a fashion staple for years, recognizable by its yellow and white striped awnings. The first perfume from the brand was its eponymous Giorgio Beverly Hills fragrance, launched in 1981 and became an instant hit.  


The Beginning:



In 1976, an unknown perfumer created the first Giorgio Beverly Hills perfume named after the legendary boutique. The first Giorgio scent sold well at first, but was not aggressively marketed, according to Katy Sweet, a company spokesperson. It was soon discontinued after the launch. However, that was not the end of Giorgio.  

In 1979, Co-owners Fred and Gale Hayman again seriously discussed the idea of developing a signature fragrance with the same name, but with a different formula and smell. This new version of Giorgio was destined to be a hit. Gale was enthusiastically pushing for the fragrance claiming the store would be enhanced by offering its own fragrance, but initially, Fred was skeptical. "At first, I thought it was not a good idea," he said. He confessed that he didn't normally wear fragrances himself but was willing to give it a shot. 

Gale Hayman said she loved perfume from the time she was old enough to know what it as and was instrumental in developing Giorgio. Katy Sweet recalled that "Gale Hayman asked the top fragrance houses for something that would epitomize the style, sun and color of Beverly Hills." Gale wanted to create a fragrance that captured the extraordinary essence of Beverly Hills glamour and high class style. She requested that it must be a "bold fragrance, yet feminine, alluring, long-lasting and, most of all, effusive." 

As a result, companies composed hundreds of potential scents for them to consider. Subsequently, the Haymans were flooded with an overwhelming array of samples, only to be dismayed with the results, eventually sending them back to the laboratory. The couple approached prominent perfume makers Florasynth in New York who had them fill out a profile form requesting the type of fragrance they desired. 

Gale worked with them to explain what she thought needed work. "It might be the top note, the initial fragrance you get when you first put it on that is either too strong or not strong enough," said Sweet.

Soon, a team was assembled to help them sort through the samples in a much more efficient manner. Composed of the Haymans and other company executives, the team sampled up to five fragrances daily, then rated them on a scale of one to five. The "fragrance panel" narrowed the selection and proceeded to test the samples on their customers. Employees would acquire unsolicited comments by wearing the fragrance in the store or to social functions. The direct approach of customers sampling the potential perfumes was also utilized. Frustrated with the lack of progress, Gale nearly abandoned the project when after two years none of the fragrances submitted had the elusive quality she was seeking. "I held out," said Gale, "until a fragrance spoke to me." 

In an accident much akin to the old story of Francois Coty's foray into fragrance decades before, Gale had a chance encounter which was to spawn the birth of the Giorgio fragrance. Hobbling on crutches after breaking her leg, Gale handed a shopping bag containing an overlooked fragrance sample to her driver. He dropped it, and the vial inside shattered. The passersby stopped in their tracks and clamored around the car asking what the fragrance was. It was at this fortuitous moment that Gale knew she found the right blend saying "we knew we had a winner." 

After four grueling years of development including the sniffing and testing out numerous samples, Giorgio was finally born, but the market testing continued. The winning fragrance was created by perfumer Jean-Pierre Subrenat in 1981, who worked for Florasynth as VP, fragrance division/chief perfumer. Subrenat modeled Giorgio after the classic perfume Joy by Jean Patou. The Giorgio fragrance contained natural perfume oils including jasmine absolute, otto of rose, extract of gardenia, orange blossom, chamomile and patchouli. You may already recognize the Subrenat name as the composer of the successful floral-fruity-woody perfume Quartz for Molyneux from 1977. 

Previously Subrenat was with Roure, then Haarmann & Reimer Creative Fragrance Studio. In 1985, Subrenat joined Givaudan as senior perfumer. He also worked from Drom International and then later for Avon's own creative and manufacturing company, Parfums Creatifs. Subrenat composed the perfumes fruity floral C'est Moi!, oriental floral Casbah, and the oriental floral Perle Noire for Avon, in the early 1990s.

 

The Launch:


To announce the fragrance's arrival, existing Giorgio Beverly Hills' customers received a special invitation to its launch party accompanied by a letter describing the perfume with a scent strip enclosed. The signature Giorgio fragrance was introduced on the West Coast at a "very black tie" dinner and party in November of 1981. The "intimate party" was held inside a white and yellow tent, covering almost an acre, across the street from the landmark boutique on Rodeo Drive and coincidentally marking the occasion of Giorgio's 20th anniversary. The extravaganza was hosted by Merv Griffin, featured a 100-piece marching band and was catered by five of Beverly Hills' best restaurants. A vintage 1952 Rolls Royce, owned by the Haymans, was parked nearby, filled with $150-an-ounce bottles of the parfum, which were handed out to every woman in attendance. The guest list of 1,200 of Fred & Gale's friends included Janet de Cordova, Loretta Swit, Pamela Mason, Henry and Ginny Mancini and Rosemary Stack. Fred Hayman boasted that "The taste setters were there. Eighty to 100 influential women who started wearing the perfume and telling others about it." Katy Sweet, Giorgio's spokesperson said "When we initially launched Giorgio, it was given to the Beverly Hills' movers and shakers, the stylesetters. They loved it."

The event was two fold - an introduction of the fragrance, but also raising venture capital to mass-produce it. Hayman met with potential investors, but found that they wanted a large portion of the business for their contribution, "I said to hell with it, I'll handle it myself," Fred Hayman later recalled. With the assistance of associates David Horner and Jim Roth, who between them had more than 40 years experience in the fragrance industry, Giorgio was launched with an initial investment of $300,000 and an innovative scent-strip magazine advertising campaign. This strategy was later coupled with a direct-mail campaign. "We didn't have the deep pockets of a large corporation," said Fred Hayman. "We gave people the opportunity to smell Giorgio and created the demand."

Before the utilization of scent strips, Hayman explained that the conventional method of launching a fragrance was to "open in over 1,000 retail outlets - or 10,000 if you're a big corporation. But we didn't want to rely on retailers who traditionally pay late. It takes an enormous amount of cash to start that way."


Unique Innovative Marketing:


The Arcade Co. of Chattanooga, Tenn., had refined the scent-strip process after a dozen years of testing. They were commissioned to create the strips which micro-encapsulated the essence of Giorgio onto specially prepared paper. Scientists placed tiny amounts of the perfume inside beads of paraffin and then affixed it to the paper strips. The scent strip was then folded to keep the smell from escaping or rubbed off prematurely. Customers could then pull the page apart, revealing the scratch and sniff strips. They were advised to rub the strips against the skin of the wrists to experience the fragrance. 

"What they are really doing when they peel back the page is rupturing the capsules and releasing the oil," explained Bob Bartless, senior vice president of sales at Arcade. Bartlett said the application of the scent adds between $8 and $9 per thousand to the cost of printing advertising material. He said the process was actually cheaper than the usual scratch and sniff process. Arcade's Scent Strips used one pint of perfume to make 60,000 pieces of two-square-inch strip. A normal magazine insert cost $35 to $45 for 1,000 strips, said a company spokesman. 

Giorgio then placed the "scratch and sniff" scent strips in direct mail ads in 40 different publications including Vogue, Harper's Bazaar, Vanity Fair, Connoisseur, Town & Country and Architectural Digest. "It was very risky," said Fred Hayman. "We had to make sure of the quality." It was estimated that the scent strips allowed at least 30 million and 40 million people to sample the fragrance.

Soon big name perfumery companies wanted scent strips to promote their fragrances too. There were so many at one time that magazines were forced to keep competitors out of issues. "They have become an integral part of marketing for every major fragrance," said Jackie Cohen, director of corporate communications for Giorgio Beverly Hills.

 Customers did not like being bombarded with too many fragrances at one time. In the wake of complaints that the scent strips caused migraine headaches, blurred vision and asthmatic attacks in many people, the New York legislature considered a bill to ban fragrance samples in magazines and mailings unless they are enclosed in odor-proof sealants.

Another innovation could be found at the the Giorgio Beverly Hills boutique. Fred Hayman had an interesting electronic device called a "Dial-A-Mist" installed above the entrance that was programmed to automatically douse the air outside every 20 seconds with bursts of the perfume, enticing bewildered customers to inquire inside.


A Smashing Success:



In 1983, an invitation-only luncheon to introduce the fragrance to the East Coast was held at the newly refurbished Hay Adams Hotel in Washington, DC. The two hour event was attended by Bloomingdale's president Marvin Traub, Gale Hayman and Carolyn Deaver, wife of presidential assistant, Michael Deaver and a PR consultant herself who pulled together a selected list of "distinguished women" made up of fashion and beauty journalists and a few society notables. The new hotel chef, who previously worked for the British Embassy, provided the nouvelle cuisine, including individual vanilla souffles, accompanied with bottles of Perrier and orange juice, served from silver trays. After the delectables were consumed, guests were treated to a fashion show. Each of the seventy invited guests were given a canvas duffel bag in the familiar yellow and white stripes of Giorgio Beverly Hills. Inside was more than $100 worth of fragrance and powder, plus a promotional t-shirt featuring the signature Giorgio crest.

Giorgio was among the more expensive private label fragrances on the market at the time. One ounce of parfum cost $150. Hayman had high hopes for his product and predicted that the ultimate goal was for Giorgio to reach $10 million in sales. Within its first year, Giorgio made $1.5 million just from boutique sales and direct mail orders alone. By 1982, Giorgio was the "best-selling fragrance in Beverly Hills," said Fred Hayman. Later that same year, the fragrance was presented as a gift to Nancy Reagan for Christmas. The former First Lady was a fan of the boutique.

Giorgio's marketing lacked the celebrity endorsements, advertising gimmicks and sappy romantic stories that many other fragrances employed to drive sales.  The original advertisement displayed Giorgio with a caption: "The Gift. The Extraordinary Gift." Other ads promoted the exclusiveness of the fragrance with captions like "Giorgio personifies the mystique and allure of Rodeo Drive. Here you can plunge into the realm of fantasy, If you're in the market for status, you can buy it here." 

The Haymans came up with an advertising slogan naming their perfume "the scent of the century." Advertisements like these dominated newspapers and magazines across the nation, sparking increasing public interest in the fragrance. 


Limited Doors:


It was in 1983 when Paulette Weisenfeld, the women's fragrance buyer for Bloomingdale's, discovered the Giorgio scent during her vacation in California. At her fortuitous urging, Bloomingdale's brilliantly acquired the first rights to sell the Giorgio fragrance, which was then launched at the Bloomingdale's flagship department store in Manhattan. Fred Hayman recalled that "Bloomingdale's did the local advertising; we did the national." Sales for the fragrance were brisk and kept on coming. Inevitably, Giorgio became Bloomingdale's top seller in just one year, beating out Opium, Chanel No. 5 and Oscar de la Renta.  

Fred Hayman said, "Bloomingdale's gave us a national presence automatically" and revealed that at Bloomingdale's 14 stores, the scent "rings up some $8 million in sales." Mr. Hayman said the product was to be the seventh-largest single contributor to the store's revenues. In 1984, Arlene Friedman, vice president and manager of Bloomingdale's cosmetics department in New York said, "We became the first store outside of Giorgio itself to carry the merchandise. "This year, we'll do $7 million of business in Giorgio. It's our best seller." 

In 1984, Hayman planned eventually to market the perfume through 70 "doors" or stores, nationwide. This was followed by subsequent distribution to select regional department stores which increased its availability to fewer than 150 doors, but "Small is big. We won't get so big that it's out of control. We want to keep the distribution limited. There's me, Gale, Roth and Horner (executives in charge of distribution and marketing), period," he said. "if we did a huge distribution, we would have gone broke. We couldn't afford to be ordinary." 

The limited distribution helped Giorgio remain "commercial, but special," Fred Hayman said. Katy Sweet, Giorgio's public relations director said that "Each store is assessed to see if it reflects the look of Giorgio. In very, very few cases is it available at a number of stores in any particular area. And we are approached - that's the power of success." 

If the store's image passed the test, the store and Giorgio began negotiating important points such as where the perfume would be positioned at the counter. It also allowed the company's officials the chance to visit each store and make sure they lived up to their promises, he noted. If a store's display was deemed not up to their standards, they would pull out their fragrance. Hayman remarked, "Everyone comes to us. When you're in limited distribution, you don't solicit. I am very specific about where we go. First of all, the place (in a store) has to look good. They have to staff us well and we have to have a good location. They have to let people know we are there and they must inventory us well. Also, they must understand that Giorgio phenomenon - which is what this is. This has not happened in the history of the perfume business that so few have shared in so much."

Katy Sweet explained that Giorgio's strategy was to go into a store, arouse customer curiosity, then hit with a splashy publicity stunt/celebration that would include the arrival of a bottle of the perfume in a Brink's armored truck to a rolled out red carpet, where a fragrance model then escorted the fragrance inside, where it was served up on a silver tray against a backdrop of showtunes tinkling from a baby grand piano.

Stores which carried the line installed yellow and white striped awnings that hung over counters where sales clerks in bright yellow jackets stood behind displays of Giorgio products. Clerks, in sunny yellow smocks strolled around the fragrance departments asking customers if they would like to try Giorgio. If they said they would, they were sprayed with perfume and given a little yellow and white striped card (impregnated with Giorgio) they could redeem at the counter for a sample - this strategy gave the saleswomen an opportunity to push other Giorgio products.

In 1986, Robert Wiser, I. Magnin cosmetic and fragrance divisional manager said, "Giorgio is very demanding in the way the counters look. I mean, Fred Hayman does not want to find a speck of dust on the counter or a tester out of place. I love it. I love hearing people put importance on those kinds of things...At I. Magnin, Giorgio is on prime real estate. It is located on our fragrance bar, which does more dollars per square foot than any piece of retailing real estate in the country. The only store that rivals us (San Francisco's I. Magnin) would be Bloomingdale's in New York."

Also in 1986, Arline Friedman, operating and merchandising vice president of Bloomingdale's said "We try to stay current and we're always looking for something that's exciting and something that is new. With Giorgio, there is a luxury association with Beverly Hills. But not everyone can afford to live there, They can afford to have a little but of Beverly Hills and I think that's part of it."

 


A Phenomenon:


Giorgio Beverly Hills swept the nation with its intense fragrance. Giorgio's success was attributed to its extraordinary scent combined with the coveted status and mystique of Beverly Hills."If we didn't have an extraordinary fragrance, we could not have built as we did. Part of it is, I admit, the prestige and quality of the store," said Fred Hayman in 1985. "When you wear our fragrance, people will definitely know what you're wearing. It's simply an extraordinary fragrance. It has a distinct identification. People always know what you're wearing," said Fred Hayman. He described the scent as "very assertive, very floral and very feminine. It has a distinct quality and identity, and it's very long lasting. You can never wear too much fragrance because if it's good, it smells very, very good." But, he cautioned, "the fragrance must suit you. A fine fragrance is like cooking; you have to have the perfect blend."

Katy Sweet, director of public relations and spokesperson for Giorgio Beverly Hills, said "Why Giorgio's has taken off is related to a combination of things. The scent itself certainly has much to do with it. Coming up with a fragrance is a very complicated process. It involves a complex chemistry and many other variables. Years ago, I used to think that you developed a perfume by throwing a lot of stuff into a Mixmaster. I couldn't have been father from the truth." Sweet also said that "the public made Giorgio a success." 

Annette Green, executive director of the Fragrance Foundation in New York called Giorgio a "trend breaker" and a "phenomenon." Green also said that "Giorgio, Beverly Hills, is a sunny, upbeat fragrance that personifies the spirit of Southern California. But is it a meteor or a classic? That is something the industry is waiting to see." A spokesman for Beauty Fashion magazine, said that "These people (the Haymans) have done a hell of a job for promoting the perfume. And they do it expensively. This year (1984), the Haymans have set aside $7 million for advertising the fragrance."

The Haymans attributed their success to offering a high quality product, tight controls on distribution, innovative advertising techniques and the of Rodeo Drive's glamourous reputation for "nothing but the best." "We're treating it (Giorgio) as a classic," said Fred Hayman. "As long as we keep improving packaging, promotions and distribution, there's no way down."

It broke records "wherever we have put it on sale." It also became a best seller at I. Magnin in San Francisco, Burdine's in Southern Florida, Foley's in Austin, Levy's in Tucson, Stanley Korshak in Chicago and of course, the Giorgio Beverly Hills boutique. Julia Bernal, I. Magnin cosmetic buyer said that Giorgio is "A phenomenon. We'll never see another like it in our lifetime."

The fragrance was immortalized in the novel Scruples by Judith Krantz. Incidentally, Gale Hayman, was the model for Krantz' central character, Billy. In due time, readers of the novel became Giorgio's next customers.


The Giorgio Perfumery:


In 1984, the Haymans opened a 1,750-square-foot "Giorgio Perfumery", known as the Giorgio Beverly Hills Extraordinary Fragrance Boutique, on East 57th Street in New York, which would sell Giorgio Beverly Hills, moisturizer, bath gel, scented candles, dusting powder, perfume and spray cologne. The firm initially planned to expand the line to include cosmetics and skin care products. 

The East Coast store was modeled after the original with its yellow and white striped awning, white brick facade and its espresso bar. But only the fragrance products were available for sale there, no clothing or accessories like the original store offered. "At our new store in New York, called Giorgio Perfumery, and in Giorgio Beverly Hills, we have the women's fragrance coming out on the street from electronic atomizers," said Hayman. He noted that "so far nobody has complained," although he often heard the world "extreme" used to describe the scent. 


Giorgio Goes International:


In 1984, Vancouver was the site of the Canadian launch of the fragrance, which debuted at Holt Renfrew, who carried the line exclusively across Canada. "We scooped Toronto with this fragrance launch," said Howard Davey, general manager of Vancouver's Holt Renfrew. In 1985, Fred Hayman was still amazed at the success of Giorgio. "We had no plans to extend distribution beyond Beverly Hills in the beginning, but now, after just three years, we are even in Europe. This year we expect sales to be around $110 million," said Hayman. Just as they had done with the retail locations in America, the Haymans selected the international stores carefully. The fragrance was sold in England, Switzerland, Germany and Saudi Arabia. In European cities, such as Dusseldorf, Munich and Zurich, the fragrance line is carried only in one store. 

For the October 1985 launch in France, a gala held at the American Embassy, it was to coincide with the spring pret-a-porter showings. The 200 invited guests, according to Giorgio's Katy Sweet, composed of "a VIP list of international dignitaries," including social leaders and designers, were greeted by a red carpet, harps and violins in an elegant 18th century building, the Hotel de Talleyrand. The event was a lavish spectacle, with three orchestras, and a mariachi band clad in colorful ponchos and sombreros added a South of the Border feel while the American Jazz Quartet Plus One provided entertainment in a neighboring salon. The Haymans flew in two of their "Dial-A-Mist" programmable scent spritzers that atomized the scent of Giorgio every 20 seconds. Four buffets offering French champagne, fresh lobsters and oysters, American treats as well such as smoked Kentucky turkey and Mississippi black eyed peas, Virginia ham, New Orleans-style gumbo with wild rice and Hollywood Brown Derby Salad.  

Hosting the showy event were the US Ambassador to France, Joe Rodgers, and his wife, Honey. "We're all for promoting American products and the feeling of enterprise in France," Rodgers said. But American perfume to the French? "I'm confident we'll do well here," said Fred Hayman, who served as co-host with the Rodgers. "We make our perfumes with French flowers from Grasse." William Tatge, commercial counselor to the American Embassy, said "We have long felt it was time for Americans to strengthen our competitive position in this market that has been the capital of fashion and fragrance." Giorgio was launched in Paris and was on sale exclusively at Galleries Lafayette. 

By 1986, Giorgio accounted for 60% of all fragrance sales at Harvey Nichols in London and it was the most popular fragrance at the Parisian department store, Les Galleries Printemps. Only two other American -created fragrances ever came close to Giorgio in popularity overseas: Revlon's Charlie and Estee Lauder's Youth Dew.

In 1988, Giorgio had 70 outlets in department stores in eight Canadian provinces, and would soon expand to 120.

What's Next?


The company had expected sales to reach $60 to $70 million in 1984, up from $15 million gained in 1983. By 1984, the Haymans were spending $3 million annually on their direct mail pitch which accounted for 60% of sales. "The marketing technique has made the biggest difference," said Fred Hayman. "It carries my store to the world." The mail-order campaign alone brought in $5 million in sales annually by 1984. At the end of 1984, sales of the perfume grossed about $60 million, making it the perfume industry's hottest seller since Revlon Inc. broke the mold with Charlie in 1973. Hayman expected sales to double to between $120 million and $140 million in 1985.

By 1985, an excess of $100 million worth of Giorgio was selling in more than 300 stores and was the best selling fragrance in America, with annual sales over $70 million and an unheard-of 40% pretax profit! The volume was achieved despite limited distribution to ensure an aura of exclusivity. Limited to only 350 department stores, it nevertheless broke records. Never in the perfume industry's history had one fragrance done so much volume so quickly and in so few stores. Marilyn Lester, divisional manager for Belk Brothers Co. said, "We had sales goals based on information from the Giorgio people, and we've exceed those."

Teresa Woodrum, division manager of cosmetics at Belk Matthews, said "I think one of the reasons Giorgio is so popular is that it's ours - made right here in the United States."

The Haymans said in 1985 that Giorgio Inc. would not become a public company, nor would it franchise the name. "It's No. 1 everywhere. We could make a fortune in licensing," said Fred Hayman, "but that would detract from what we do best." 

"We're a small company, we have no five-year plan. We go with a gut feeling about what to do next. Now we have a night cream, but I'm not so sure we want to go into the (skin) treatment line. That's a whole different business, and a very competitive business," said Fred Hayman in 1985.

"We will no longer cite figures. We used to because it was a mark of success. Now, it's no longer necessary," said Fred Hayman in 1986.

Knockoffs:


Speaking of competition, Giorgio was "copied" by several companies hoping to cash in on their own versions of the scent's popularity. Imposter fragrances, also called knockoff brands, copycats and designer alternatives or challenges, are not counterfeit fragrances. They are almost-exact replicas of more expensive upscale originals in everything but price. They do not try to pass themselves off as the original they are imitating; they just invite comparisons. They were and still are available in chain drug stores, supermarkets, mass merchandise retailers and discount shops. 

Since scents do not require a patent and "secret formulas" are a thing of the past now that highly sophisticated gas chromatography can be used to identify the ingredients. However, there were unscrupulous mail order companies that tried to fake out customers with their reproductions of famous fragrances. Some of the companies showed actual full sized bottles of famous perfumes in their ads, but customers would be sent trial sizes or tiny vials of their "exclusive versions." Numerous complaints were lodged against two companies: Favorite Fragrances and Parfums de Paris. The complainants spoke of poor quality "versions" of perfumes, cheap watered down perfumes, difficulty obtaining refunds or non-delivery. 

The most prominent knockoffs of Giorgio were Primo! by Parfums du Coeur, Juliano by Westport Labs, and No. 34 by Tuli Latus. 

W. Edward Sanford, president of Westport predicted that Juliano will do $5 million by the end of 1986. He said, "We bring quality products at a fair, reasonable price to mass retailers." He explained that all fragrances are made by essential oil houses, usually located in New Jersey. "They create the essence, then it's bottled and packaged by the marketer.. We use top quality. You can't out cheap essential oils into the bottle and expect to get something good. You walk in an elevator and if you're wearing Juliano, people assume you're wearing Giorgio. We haven't had any lawsuits because we bend over backwards to create no deception on the display or package. There is strong visible disclaimer saying Juliano is in no way connected with Giorgio by Beverly Hills. We position ourselves as the alternative, then you have to be your own judge."

A woman tried out the Tuli Latus version and said "It's very close to the original but the imposter doesn't last. Also, the original perfume has a little less of a flowery scent than the imposter."  

Nevertheless, Giorgio Beverly Hills took some of the knockoff companies to court over trademark violations. Giorgio Inc. took legal action against knockoff companies, in particular Parfums du Coeur, the basis of the lawsuit was a television commercial showing a bottle of Giorgio and Primo.

In 1986, Michael Horowitz, general manager of the Specialty Stores Division of Chesebrough-Pond's said, "Trading on other people's good will and hard work is the worst thing for the industry. The trend started when Ninja (Parfums du Coeur's imposter of YSL's Opium) hit big about four years ago. It's a garage kind of operation, trying to trade on trademarks. Women who go to Saks Fifth Avenue and Neiman Marcus who want a very fine fragrance like Decadence ($160 an ounce) won't buy cheap knockoffs - hopefully."

"It's unfortunate that the real victims of flagrant, so-called knockoffs of prestige fragrances are the consumers. These are individuals who through the guise of advertising claims are under the impression they are receiving a product comparable in quality to the original when such is clearly not the case," said Fred Hayman.

He elaborated saying, "No one else could possibly come up with the quality of our fragrance. It has been impossible to date to even come close to duplicating our scent. To our knowledge, we are the most expensively made fragrance and have an ingredient available to no one else. There is no substitute for a true original. There is only one Giorgio." 

"Giorgio Beverly Hills contains a significant concentration of natural essential oils of the highest quality. Consequently, we are among the most expensive fragrances to produce. When a customer purchases Giorgio Beverly Hills, he or she is receiving the benefit of this quality. There is no substitute," he said.

"I don't like the idea of being copied. But if (the copies) are legal, there is nothing we can do. If they clearly say that it is a version of Giorgio and there is no confusion in the customer's mind, there's nothing we can do about it. If they use our awning or our box or bottle, then we prosecute," said Hayman.

Mary Carley, a spokesperson for Giorgio said, "We don't comment on knockoffs...except to say we use expensive products in our perfume and the consumer is being duped by these companies."


Behind the Scenes:


Behind the scenes at company headquarters, Fred and Gale divorced in 1984, but resolved to stay "married in business." Both remained active in developing the fragrance as well as being involved with the boutique. Fred said "It takes a lot of ego to enter this business, but the same ego can destroy you." The breakup caused infighting furthered by intense arguments which led to Fred firing his ex-wife and co-owner Gale in March 1985. He also demoted two other key marketing executives in April 1986. Not to be outdone, Gale responded with a $75 million lawsuit against her ex-husband, which compounded Giorgio's problems. Revenues reached a plateau by 1986, and in many key accounts, such as Bloomingdales, volume was actually declining by as much as 30%. 

In 1987, Fred and Gale sold the business to Avon for $165 million. In 1990, Avon decided to put the Giorgio Beverly Hills company up for sale, asking a tidy sum of $235 million. It did not accept any offers below the asking price, including those from competitors Amway and Revlon. 

Avon increased Giorgio's distribution from 500 to 900 stores, making the fragrance more available to its middle-to upper-class clientele. Distribution had expanded to too many stores, which eroded Giorgio's snob appeal, and no new products were being introduced to help keep the brand afloat. In 1987, Giorgio Beverly Hills spent $3.6 million on advertising to in an effort to boost the public interest. Fred bought back the boutique, but Avon Products, Inc purchased Giorgio Beverly Hills, the fragrance and its associated rights for $165 million. The boutique, along with its original name, Giorgio Beverly Hills, was initially retained by Fred when he and Gale sold the product to Avon.

Under an agreement with Avon, however, Fred relinquished the name in 1989. He then renamed the existing boutique Fred Hayman Beverly Hills. To mark the occasion, Fred removed the iconic yellow and white striped awnings and unfurled gold and red awnings outside his famous shop. He then launched his first fragrance under his own name, 273 by Fred Hayman, named after the Rodeo Drive retail address.

In 1988, Giorgio still pulled in the hundred million in sales, remaining the nation's top selling prestige-brand fragrance. 

Eventually, Avon sold it to Procter & Gamble in 1994 for $150 million. P&G then merged Giorgio with it's fine fragrance division Eurocos (now known as P&G Prestige Beauté). In 2007, Elizabeth Arden Inc acquired the worldwide license for Giorgio Beverly Hills fragrances and markets them under the EA Fragrances banner.

 

Fragrance Composition:



So what does it smell like? It is classified as a floral fruity fragrance for women. A distinctive, yet sensuous, romantic floral. Totally feminine, its personality is derived from an original formula fashioned from a complex symphony of many precious natural perfume oils and costly extract. The top note glows with gardenia, honeysuckle and orange blossom, then dims into a soft heart of jasmine, tuberose, rose absolute and chamomile, ending with patchouli, musk and precious woods. 

  • Top notes: galbanum, green notes, apricot, orange blossom, peach, bergamot, mandarin
  • Middle notes: lily of the valley, hyacinth, carnation, orris, tuberose, gardenia, orchid, jasmine absolute, ylang ylang, rose absolute
  • Base notes: sandalwood, amber, chamomile, patchouli, musk, oakmoss, vanilla, cedar


Bottles:

Fred Hayman directed the packaging, merchandising, marketing and advertising campaign.  Instead of a showy crystal flacon, the fragrance was housed inside of a plain stock bottle and advertised with simple, yet elegant sophistication. The fragrance was packaged in Giorgio's signature sunny yellow and white stripes, a motif that decorated the awnings of the posh Beverly Hills boutique.  Bath and body products and a scented candle were added to the line in 1984. 


Originally available in the following:
  • 1 oz Extraordinary Perfume (retailed for $150)
  • 1/4 oz Extraordinary Perfume (retailed for $50)
  • 3 oz Extraordinary Spray Cologne (retailed for $40)
  • 8 oz Extraordinary Perfumed Body Moisturizer with Collagen (retailed for $25)
  • 8 oz Extraordinary Perfumed Gel for Bath and Shower (retailed for $20)
  • 5 oz Extraordinary Perfumed Dusting Powder (retailed for $25)
  • 6 oz Extraordinary Perfumed Candle, set of two with gift box (retailed for $47.50)
  • Purse Atomizer with Funnel (sold empty, retailed for $18.50)

By 1984, an ounce of the perfume retailed for $200, and the one quarter ounce for $70. The spray cologne, which is the strength of an eau de parfum, was $55 for three ounces. Conveniently, the cap of the cologne may be removed to fill purse atomizers.


Fate of the Fragrance:


In 1987, the company was sold to Avon for $165 million. Avon tapped veteran perfumer Jean-Pierre Subrenat, creator of the Giorgio Beverly Hills signature perfume, to create a score their future perfumes, in association with their own creative and manufacturing company company called Parfums Creatifs.


In 1990, Avon decided to put the Giorgio Beverly Hills company up for sale, asking a tidy sum of $235 million. It did not accept any offers below the asking price, including those from competitors Amway and Revlon. 

Eventually, Avon sold it to Procter & Gamble in 1994 for $150 million. P&G then merged Giorgio with it's fine fragrance division Eurocos (now known as P&G Prestige Beauté). In 2007, Elizabeth Arden Inc acquired the worldwide license for Giorgio Beverly Hills fragrances and markets them under the EA Fragrances banner.

Giorgio Beverly Hills has been in constant production for many years but has suffered from reformulation due to IFRA restrictions and regulations on ingredients, the most noticeable of reformulations was around 2010.

To find the original vintage versions, be sure your bottles and packaging are marked with Giorgio Beverly Hills name only (or Eurocos and IMG Associates) and not marked with EA Fragrances (Elizabeth Arden). 



1 comment:

  1. Só interesting!!! What a fascinating story. I LOVE THIS BLOG. It's the best read brings me a lot of joy

    ReplyDelete

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