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    Top Companies Report

    16. Clarins

    ...

    08.04.08

    France
    www.clarins.com
    Sales: $1.38 billion



    Sales:

    $1.38 billion.


    Key Personnel:

    Philip Shearer, chairman of the management board; Olivier Courtin-Clarins, managing director, research and development;  Pierre Milet, managing director, administration and finance; Lionel de Benetti: chief industrial officer; Dominique Calvo, group human resources director;  Pankaj Chandarana, chief financial officer;  Gérard Delcour, president travel retail, agents, and the American area excluding the U.S.; Frédéric Géraud,  president, European area; Isabelle Herbreteau, president, Clarins brand;  Joël Palix, president, Clarins Fragrances Group; Pascal Pollet, vice president, group operations;  Robin Vincent, president, Clarins UK; Jonathan Zrihen,  president, Clarins USA. Clarins will announce a president of its Asian region next month.


    Major Products:

    Skin care, fine fragrance, color cosmetics and sun care sold under brand names such as Clarins, Thierry Mugler, Azzaro, Stella Cadente and My Blend.

    New Products:

    My Blend customizable skin care

    Comments:

    Net sales rose 7.3% last year, but it has been a busy summer for Clarins. In late June, the company’s board announced plans to buy back the outstanding shares not already owned by the Courtins-Clarins family, taking the company private. According to Christian and Olivier Courtin-Clarins, the family will buy more than 15 million shares in an offer backed by CIC Bank.
       
    By taking the firm private, Clarins puts an end to—for the time being—takeover rumors that had circulated since the death of founder Jacques Courtins-Clarins in March, 2007. After the delisting from the Paris Bourse, Clarins plans to refocus its portfolio, emphasizing leading brands such as Thierry Mugler, Azzaro and Clarins, and expanding its makeup and color cosmetics operations.
       
    In 2007, beauty sales rose 8.6%, driven by the renewal of its make up line and new launches in skin care, such as Double Serum Generation 6, Truly Matte Skincare, Décolleté and Neck Concentrate and Younger Longer Balm. On the perfume side, sales rose 8% backed by the performance of classic fragrances such as Angel, Azzaro Pour Homme and Chrome as well as newer scents such as Azzaro Now.
       
    Clarins currently has a number of licenses and accords that contribute to its portfolio and partnerships to distribute cosmetics for prestigious brands such as Hermès, Burberry, Cartier, Jean Paul Gaultier, Issey Miyake and Nuxe in selected markets.  In addition, Clarins has invested in companies its management deems as “offering strategic potential and provide opportunities for synergies and sharing expertise.” One of those is Kibio, a range of organic products distributed through direct sales, pharmacies and parapharmacies. Clarins’ Pontoise factory, which has obtained the Ecocert label for the production of organic products, will handle all production for Kibio by the end of the year.
       
    Clarins has been leveraging well-known names from outside the beauty industry. Its long-term partnership with Porsche Design, forged in 2006, has yielded its first scent, The Essence, which will hit the streets on Sept 1. Also, Thierry Mugler Parfums has signed an exclusive license agreement with crystal expert Swarovski for the worldwide distribution and creation of Swarovski Beauty, a line of fragrances, makeup and beauty accessories that will come to market in 2010. The range will be distributed in selective perfumeries, prestige department stores and Swarovski boutiques worldwide.
       
    In skin care, Clarins has added a new brand called My Blend. The premium line of personalized skin care, which was developed by Dr. Olivier Courtin, made its debut in the U.S. late last year. It features advanced formulas based on biotechnology developments and a patented neuro-cosmetic complex delivers “customized” skin care that can be adapted to specific individual needs. The line features Essentials day/night skin care products, Emergency Boosters—concentrates of pure active ingredients added to the day and/or night product for a treatment cure (dull complexion, extreme dehydration, redness)—and other “add-ins.”  While the offering is extensive, the company said the key to My Blend is the point-of-sale expertise its sales staff will deliver at the counter. Currently Saks Fifth Avenue department stores in New York, Chevy Chase, MD and Costa Mesa, CA are carrying the line. Clarins plans to bring the brand to France in September and expand its reach to 80 locations in 2009.  
       
    For the first quarter of 2008, Clarins’ sales rose 4.9% to €240.1 million. 
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