Sales: $4.7 billion
Key Personnel: Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director; Pierre Godé, vice chairman; Nicolas Bazire, development and acquisitions; Chantal Gaemperle, human resources; Jean-Jacques Guiony, finance; Christopher de Lapuente, Sephora; Philippe Schaus, DFS; Jean-Baptiste Voisin, strategy.
Major Products: Perfume, makeup and skin care. Brands include Christian Dior, Guerlain, Givenchy, Kenzo, Benefit, Fresh, Acqua di Parma, Make Up For Ever, Parfums Loewe, Fendi and Pucci.
New Products: Miss Dior Blooming Bouquet, Capture Totale Dreamskin, Guerlain L’Homme Ideal, Gentlemen Only and Dahlia Divin, Jeu d’Amour, Brow Bar.
Comments: For a luxury goods house like LVMH, the market can be segmented into the well-to-do rich who are always on the hunt for something new and exclusive, and the newly-minted rich in emerging markets who are just taking their seat at the banquet. Either way, the wealthy have become more global, making big-ticket purchases online, in-store and on globe-trotting expeditions. Even so, LVMH has successfully followed its customers wherever they travel.
Last year, sales of perfumes and cosmetics rose 5%, compared to a 6% gain for the company overall. The business group posted significant gains in the US and Asia (particularly China) and was boosted by grand performances from Christian Dior, Benefit and Guerlain. Taking a closer look at LVMH’s CFT business, perfume accounted for 43% of sales, followed by makeup (39%) and skin care (18%). Europe (excluding France) represented 30% of sales, with Asia (excluding Japan) accounting for 26% of sales.
At Parfums Christian Dior, gains were made in every key market, thanks to strong demand for J’adore, Miss Dior and Dior Homme fragrances, as well as higher skin care sales in Asia.
Guerlain’s sales rose, too, and the brand gained share in France and China. The high-profile launch of L’Homme Idéal helped boost the brand in key markets. Parfums Givenchy’s results were helped along by the debut of Gentlemen Only and Dahlia Divin fragrances, while Kenzo Parfums saw gains from the introduction of Jeu d’Amour. Benefit maintained its No. 1 spot in the UK makeup market and Make Up For Ever marked its 30th anniversary.
Things got off to an even better start in 2015, as perfume and fragrance sales surged 6% to pass the €1 billion mark. Christian Dior continued to find new fans thanks to the popularity of its J’adore and Miss Dior fragrances, as well as higher demand for color cosmetics. Meanwhile, Guerlain continued to roll out L’Homme Ideal and inaugurated its new production facility in Chartres.