11.07.12
11. LVMH
France
www.lvmh.com
Corporate Sales: $30.6 billion
Beauty Sales: $4.1 (perfumes & cosmetics)
Key Personnel: Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director; Pierre Godé, vice chairman; Nicolas Bazire, development and acquisitions; Ed Brennan, travel retail; Chris de Lapuente, Sephora; Nicholas Munafo, president LVMH Fragrance Brands division; Jean-Baptiste Voisin, strategy.
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Benefit maintains a high growth level at LVMH; in 2011, it made a successful debut in Brazil. |
New Products: Diorskin Nude Foundation, J’adore Creamy Shower Gel, Dior Eau Savage, Guerlain Super Aqua-Mask, Vetiver Deodorant Stick, Guerlain Homme Deodorant Stick; Kenzo Flower Tag Eau de Parfum; Benefit Cosmetics Watt’s Up, Benefit Sexy Little Stowaways, Nude ProGenius.
Comments: LVMH reaped the benefits of the continued demand for luxury items, including timeless classics, with a nearly 16% increase in revenue to nearly $31 billion. For the first time, profits were recorded at more than $6.5 billion. All business groups enjoyed success across Europe, in Asia and in the U.S. Sales of perfumes and cosmetics—which accounts for 13% of corporate revenue—rose 4% last year to over $4 billion. In 2011, the company added luxury goods manufacturer Bulgari to its portfolio.
Within the perfumes and cosmetics business, fragrance accounted for 49% of sales, followed by cosmetics at 34% and skin care products at 17%. By region, Europe (excluding France) accounted for 37% of sales, followed by Asia (excluding Japan), 22%; other markets, 16%; France, 10%; U.S., 9%; and Japan, 6%. All of the brands played a part in the strong momentum of the Asian and American markets. Europe, too, despite economic problems, contributed to growth.
By brand, the Parfums Christian Dior brand continued to excel, led by strong demand for J’adore, which was once again the leading female perfume in France in 2011, as well as the record-setting launch of Dior Addict lipstick. Guerlain sales were boosted by demand for Shalimar as well as the success of Orchidée Impériale.
Guerlain expanded its distribution by opening new boutiques in France, the Middle East and China. At Parfums Givenchy, the new women’s fragrance, Dahlia Noir, which launched in the second half of the year, enjoyed a promising start. Benefit made a very successful debut in Brazil.
Not content to rely on its bestsellers, LVMH continues to focus on R&D, and late in 2011 broke ground on a new research facility called Helios. The Group also invested heavily in advertising to fuel sales.
And the good news continues to flow in 2012. For the first half of this year, the company reported revenue of $16.3 billion, an increase of 26%—even more significant when heaped on top of the strong growth in the same period in 2011. Growth continued in the U.S., Europe and Asia. Perfumes & Cosmetics achieved double-digit growth of 14% over first-half 2011, ringing up almost $2.2 billion in sales. Christian Dior continued to perform well both with its iconic products and growth of fragrances J’adore, Miss Dior and Dior Homme. The makeup and skincare segments also did well. Guerlain’s successful La Petite Robe Noire launched in France in the first half. Givenchy’s growth was attributed to the perfume Very Irresistible. Benefit and Make Up For Ever maintained a high level of growth.
In January, news of a new fragrance from LVMH was reported, and it was announced that master perfumer Jacques Cavallier-Belletrud would shepherd the project. No launch date was given, but Vuitton said it plans to distribute fragrances exclusively in its own boutiques. It is the first perfume from the company since it retailed three perfumes in the ’20s and ’30s, all of which were later discontinued.
Early this month came word that the Queen of England had approved an honorary award to make Arnault a Knight Commander of the Most Excellent Order of the British Empire. He received the award for “services to business and the wider community in the UK.”
