THE BEAUTY REPORT: LVMH LVMH P&C brands deliver again


Good performances from LVMH Moët Hennessy Louis Vuitton’s Perfumes & Cosmetics division in both 2016 and Q1 2017 bode well for the world’s leading luxury goods group as it now looks to expand its global retail empire with the launch of 24Sevres.com – the new fashion, accessories and beauty website. Doug Newhouse reports.


L


ooking back on the year, LVMH says it was a good one with the Perfume & Cosmetics division


and its nine houses recording an impressive +6% ‘reported basis’ increase to €4,953m ($5,509m) in calendar year 2016 – followed by another +15% rise to €1,395m ($1,552m) in the first quarter of this year. Over the 12 months ending in


December 2016 the P&C business reported organic revenue growth of 8%, with some 38% of the division’s total sales coming from its perfume business and LVMH commenting in particular upbeat mode within its annual report: “Parfums Christian Dior grew market share in all Sauvage regions, driven by the worldwide success of Sauvage and the vitality of its iconic perfumes J’adore and Miss Dior. “The progress of makeup also


contributed to the Maison’s excellent performance. Guerlain benefited from the successful launch of its new makeup collection inspired by its fragrance La Petite Robe Noire. Benefit Cosmetics experienced strong growth driven by the success of its new collection for eyebrows. Make Up For Ever, Fresh and Kat Von D performed well.” Looking forward at the outlook for


2017 the company said last January that it was setting new market share targets for this year, with product innovations at the heart of these efforts. As a result, it said that Parfums


Christian Dior is this year placing ‘special emphasis’ on strengthening J’adore, Miss Dior and Sauvage, while also focusing on increasing the profiles of its Poison Girl and Dior Homme Sport brands to younger consumers. The company also emphasised


that Dior’s makeup is also benefiting this year from major


JUNE 2017


innovations, plus increased use of digital communications, while the company’s skincare sector is being given a boost to drive sales of both Prestige and Capture Totale. “The brand will continue to


cultivate its aura in synergy with Couture Dior as well as its reputation as one of the world’s great perfume houses, while continuing to invest in boutiques and sales counters devoted to excellence and contemporary trends.”


Mon Guerlain success Turning to Guerlain, LVMH says it had a successful launch this year of its Mon Guerlain female fragrance in cooperation with its new face, actress Angelina Jolie, while the house continues to support its La Petite Robe Noire female fragrance, plus its skincare lines, lip and foundation segments. It adds that the La Petite Robe Noire fragrance has also been the influence for the success of the new makeup collection, with the global roll out of its line of lipsticks and nail polish. LVMH said: “A new version of


the fragrance – Intense – was also launched. The Orchidée Impériale and Abeille Royale lines ensure Guerlain’s growth in the skincare industry and illustrate its efforts to protect biodiversity.” In addition, LVMH says that


Parfums Givenchy is using this year to accelerate the development of its makeup business, while launching a new communications campaign for its perfume lines, while Kenzo Parfums is continuing to roll out its Kenzo World and its newly created and updated Flower by Kenzo. By contrast, LVMH also pointed


to the continued international expansion of Benefit Cosmetics and its efforts to ‘strengthen its global leadership position in the eyebrow segment’. At the same


TRBUSINESS 49


LVMH continues rollout of Kenzo World fragrance in TR.


“The performance of this business group [in 2016] was bolstered by the strong momentum of perfumes and make-up in Europe and in the US.”


LVMH


time the company says that Make Up For Ever is maintaining its ‘strong innovation policy’ in the segments of complexion, lips and eyes, while Kat Von D is expanding in the French market and a new full makeup line collaboration is now taking place in partnership with singer Rihanna. LVMH reports that the first quarter


of this year has also proved very positive, with Parfums Christian Dior achieving ‘good growth’ with make-up, J’adore and Sauvage and the aforementioned Mon Guerlain women’s fragrance proving to be a highlight of the trading period. «


LVMH sales by division 2016 (€ m)


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