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    Top Companies Report

    25. L’Occitane

    ...

    08.01.14
    France
    www.loccitane.com
    Sales: $1.4 billion

    Key Personnel: Reinold Geiger, executive director, chairman and CEO; Ennanuel Osti, executive director and managing director; André Hoffmann, executive director and managing director; Domenico Trizio, executive director and chief operating officer; Thomas Levilion, executive director and group deputy general manager, finance and administration; David Boynton, managing director, North Atlantic and Australia region; Olivier Ceccarelli, head of strategy; Bénédicte Le Bris, head of research and development and quality; Nicolas Siriez, international managing director, L’Occitane en Provence brand, Continental Europe and Latin America; Jean-François Gonidec, deputy general manager (supply chain management); Marcin Jasiak, group managing director for STREAM (Russia, Poland, Scandinavia and Central Europe subsidiaries) region and export and worldwide duty free divisions for Asia, Europe, Middle East, Africa and Americas.

    Major Products: Personal care, skin care and fragrance sold under the L’Occitane, Melvita, Le Couvent des Minimes and Erborian banners.

    New Products: Shea Butter Creams, Verbena Body Care.

    Comments: L’Occitane’s Group’s net sales were $1.4 billion for the year ended March 31, 2014, an increase of 1.1%. At constant exchange rates, the net sales growth was 9.4%, according to the firm, which is based in France and operates across the globe through its namesake banner and other brands (Melvita, Le Couvent des Minimes and Erborian).

    One of those global markets is Brazil, where sales rose 4.0%. At constant exchange rates, the growth was 20.8%, which makes that country one of the firm’s fastest growing markets (along with China and Russia). In Brazil, the economic environment remained challenging, according to L’Occitane, yet growth came through the launch of a new local brand, L’Occitane au Brésil. Three new L’Occitane au Brésil stores opened their doors during that period, according to the company. And, L’Occitane said it is preparing for a future franchise network in Brazil.

    As part of its ongoing retail development endeavors, L’Occitane Group increased the number of its retail stores to 1,295 and renovated and relocated 121 stores during the past fiscal year. In addition, the firm said it “stepped up” digital marketing investments to promote greater brand awareness in the digital space and support the higher margin. In fact, e-commerce retail is the fastest growing channel of the group and accounts for about 7% of the group’s retail sales.

    On the R&D-front, company’ expenses increased by 22.6% during the year.

    On a less positive note, earlier this year, claims made in some L’Occitane Inc.’s advertisements caught the attention of the Federal Trade Commission (FTC) as there was not sufficient scientific data to support the claims. As part of the final consent order, the FTC fined L’Occitane $450,000.
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