07.30.07
8. LVMH
France
www.lvmh.com
Sales: $3.1 billion
Sales:
$3.1 billion for perfumes and cosmetics. Corporate sales: $19.2 billion. Net income: $2.7 billion.Key Personnel:
Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director.Major Products:
Fragrances and cosmetics sold under such brands 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 Démon, Orchidée Impériale, 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 (ex. France) accounted for 41% of sales; followed by France, 17%; Asia (ex. Japan), 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 share due to a more selective positioning. Significant gains were also recorded in the U.S. and Europe. Asia, a major growth driver, also recorded strong gains.
By brand, Parfums Christian Dior continued its rapid sales growth via expansion in all product categories and “solid performance” in all geographic regions. More specifically, the brand registered double-digit gains in Europe and the U.S. and increased its position in the emerging markets of China, Russia and the Middle East. Although there were no new fragrances from Dior, makeup sales were strong behind 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 the continued success of Capture Totale, an anti-aging line.
Guerlain registered double-digit gains in skin care due to the successful launch of Orchidée Impériale and the growth of SuperAqua. On the fragrance side, the debut of Insolence provided a lift. During the year, Guerlain remodeled its site and its institute on rue de Sévres on the Left Bank of Paris.
Parfums Givenchy posted double-digit gains thanks to strong sales in Europe and Russia. At the same time, it expanded in the Middle East and Latin America. During the year, the company launched “vintage versions” of Amarige, 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 made gains in the U.S. and UK and expanded in 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 posted strong gains.
This year, LVMH continues to roll out an array of new products such as Very Irresistible Givenchy for Men and Rouge Interdit lipstick.
For the first quarter of 2007, perfume and cosmetic sales rose 11%. The success of J’adore and Miss Dior Chérie and the launch of the new male fragrance, Fahrenheit 32, boosted Parfums Christian Dior’s growth. The brand also benefited from the continued progress of the Rouge Dior lipstick and Capture skincare. Guerlain got a lift from the success of Insolence and the strong performance of its Terracotta makeup line. Parfums Givenchy revenue increased, notably thanks to the success of Ange ou Démon. The relaunch of Eaux par Kenzo and the roll-out of KenzoAmour were the principal drivers of Parfums Kenzo’s growth.