BEAUTY REPORT: LVMH


them,” continues Marzloff. The danger of being innovative,


however, is losing focus on the product itself. “Let’s take a lipstick, for example. It


Kenzo World fragrances, LVMH.


and when this is the case people buy more.” All LVMH perfume and cosmetics


brands were present at the recent TFWA Singapore show, except Christian Dior, which is a little separated in terms of organisation and reporting line. “Strong growth drivers include


Guerlain and one of their innovations this year is the Rouge lipstick, which has a customisable case and is tremendously successful,” he says. Guerlain, which partnered with


Chinese actress Fan Bingbing as part of a campaign to celebrate Chinese New Year 2018, is enjoying the return to growth of the skincare category. “The brand has made really


interesting activations with Sunrise Duty Free in China, which include a pop-up store and some digital activities with games,” he continues. Givenchy has also executed


some digital DF&TR initiatives, which interact with the customer a little differently. Additionally, it is specifically capitalising on the make-up trend with its lipstick and face powder. “One of our strong innovations is


the [Givenchy] Rouge Interdit, which is a liquid lipstick and one of the key drivers of our success,” according to Marzloff. “Benefit Cosmetics is continuing


to grow thanks to its eyebrows, makeup products and mascaras. Make Up For Ever remains strong among the Chinese and Fresh is obviously booming as it is the pin-up brand for all Chinese consumers.” In order for the likes of Benefit


Cosmetics, Fresh and Make Up For Ever to continue growing, remaining innovative and thrilling customers is vital. “If you do something different and are more innovative then you excite


JUNE 2018


is all well having fantastic packaging and something very innovative and exciting, but if it is a texture that doesn’t cover the lips people won’t buy it. “It is also about ensuring


innovation serves the customer in terms of service, gesture and routine. “We must consider how the


customer will engage with and discover the brand whether they are doing so for the first time or not.” While Marzloff is mindful of


potential external influences and challenges to the business, he tries not to focus on them too much. “Last year, we had THAAD to


contend with, but geopolitically the region is going in the right direction. I am more worried about a possible repeat of something like a MERS or SARS.”


TR is ‘strategic channel’ Currency fluctuations can also cause problems and really impact consumer buying behaviour, “but in general, we see the business being really positive over the next two or three years based on the demographics of China alone”, explains Marzloff. Outlining the structure of LVMH’s


Asia Pacific DF&TR perfumesand cosmetics business, Marzloff comments: “Previously, each brand was operating separately and I was just looking after Givenchy and Kenzo. “Now, I look after all the brands


including the likes of Guerlain, Benefit, Make Up For Ever and Fresh. These are the ones which currently exist in Asia Pacific.” He says there are plenty other


beauty brands in the group not in Asia Pacific, but hopes to be able to distribute them in the future. In terms of its current DF&TR


business in the region, LVMH is present in almost all Asian airport and downtown DF&TR stores with Guerlain, Givenchy and Kenzo. “Benefit, Make Up For Ever and


Fresh are still developing their travel retail distribution so are not yet in all


Fresh is well represented in Singapore Changi Airport Terminal 4.


TRBUSINESS 41


“We would now like to approach the channel as a group by creating synergies and being very competitive. We are extremely ambitious and confident of a bright future.”


Andre Marzloff, LVMH


the doors,” acknowledges Marzloff. All things considered, DF&TR is


clearly becoming a more strategic distribution channel for the group and the brands in Asia Pacific and beyond. A travel retail brand structure


has been implemented and with the exception of Christian Dior brands are no longer acting as standalone labels. Marzloff says: “We would now like


to approach the channel as a group by creating synergies and being very competitive. We are extremely ambitious and confident of a bright future.” Key to ensuring this will be


permanent successful merchandising with brands continuing to fight for the best representation in-store. “Brands like Guerlain, Givenchy


and Kenzo are enhancing visibility through animation opportunities, pop-up stores and outposts. “I would like to believe Benefit,


Make Up For Ever and Fresh are also looking at how to leverage animation opportunities.” «


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