11. LVMH
France
www.lvmh.com
Beauty sales: $3.1 billion
Corporate sales: $19.2 billion
Key Personnel:
Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director.
Products/Brands:
Fragrances and cosmetics marketed under brands such as Christian Dior, Guerlain, Givenchy, Kenzo, Acqua di Parma, Parfums Loewe, Benefit, Fresh and Makeup Forever.
New Products:
Dior—Rouge Dior, Dermo System for Men; Guerlain—Ange eu Demon, Orchidee Imperiale, Insolence, Fahrenheit 32; Kenzo—KenzoAmour.
Comments:
Sales of perfumes and cosmetics rose more than 10% last year. By product category, fragrances accounted for 52% of sales, followed by cosmetics (28%) and skin care products (20%). By region, Europe (except France) accounted for 41% of sales; followed by France, with 17%; Asia (except Japan), with 13%; U.S., 9%; and Japan, 7%. Other markets represented 13% of sales.
All the brands and product lines in the group contributed to growth. In France, LVMH gained market share due to a more selective positioning. Significant gains were also recorded in the U.S., Europe and Asia.
Cosmetics, such as Rouge Dior, account for 30% of LVMH's beauty sales.
|
By brand, Parfums Christian Dior continued its rapid sales growth by expanding in all product categories. The brand posted double-digit gains in Europe and the U.S., and increased its market share in the emerging markets of China, Russia and the Middle East. While Dior unveiled no new fragrances, makeup sales were strong with the debut of Rouge Dior, the development of Diorskin foundation and high demand for the Collection and Backstage lines. Dior’s beauty business benefited from continued success of Capture Totale, an anti-aging line.
Guerlain registered double-digit gains in skin care due to the successful launch of Orchidee Imperiale and the growth of Super Aqua. On the fragrance side, the debut of Insolence gave sales a boost.
Parfums Givenchy also posted double-digit gains due to strong sales in Europe and Russia. At the same time, expansions were noted in the Middle East and Latin America. The company also launched “vintage versions” of Amarige Mariage, Organza and Very Irresistible Givenchy.
Parfums Kenzo recorded strong growth in Europe, the U.S. and Russia, all driven by the launch of KenzoAmour.
Benefit Cosmetics lived up to its name in the U.S., U.K. and France. New avenues of growth opened in Spain, South Korea, Hong Kong and Taiwan. Meanwhile Make Up for Ever continued to grow in all strategic markets: France, South Korea, the Middle East and the U.S. Finally, Acqua di Parma and Fresh both showed strong gains.
This year, LVMH continues to roll out new product lines such as Very Irresistible Givenchy for Men and Rouge Interdit lipstick.
For the first quarter of 2007, perfume and cosmetic sales rose 11%. The continued strength of the fragrance J’Adore and the launch of the new men’s fragrance, Fahrenheit 32, boosted Parfums Christian Dior’s growth. The brand also benefited from the makeup line Backstage, the new Rouge Dior and the Capture Totale skin care line. Guerlain got a lift from its Insolence fragrance and the Terracotta and KissKiss makeup lines. Guerlain by Pucci was another successful launch. Revenues of Parfums Givenchy increased with the success of Amarige Mariage and the new feminine fragrance Ange ou Demon. The relaunch of Eaux par Kenzo and the rollout of KenzoAmour were the principal drivers of Parfums Kenzo’s growth. And with its “Love your look” line launched this past spring, BeneFit gained market share with its lipsticks and eyeshadows.
Responsibilities have shifted recently in the LVMH Perfumes and Cosmetics Group with appointments in its Selective Distribution and Perfumes & Cosmetics activities. Renato Semerari, former president and CEO of Guerlain, was appointed president and CEO of Sephora Europe (Sephora is a subsidiary of LVMH Moët Hennessy Louis Vuitton S.A., which owns many of the brands sold in Sephora). Laurent Boillot, former general manager of Guerlain, is now president and CEO of Guerlain.
|
