10.30.13
10. LVMH-Moët Hennessy Louis Vuitton
www.lvmh.com
Corporate Sales: $ 37.1 billion
Beauty Sales: $4.8 billion
Key Personnel: Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director; Pierre Godé, vice chairman; Nicolas Bazire, development and acquisitions; Chris de Lapuente, Sephora; Philippe Schaus, travel retail; Jean-Baptiste Voisin, strategy; Paula Larroque, general manager and senior vice president of Latin America for Sephora Americas; Pamela Baxter, president and CEO, LVMH Perfume & Cosmetics, North America
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Dior’s packaging (from Axilone) for Capture Totale, is a highly technical, patented luxury package with a unique refill replacement. |
New Products: Dior Mystic Metallics, Miss Dior Le Parfum, Guerlain Meteorites Perles du Paradis Sparkling Illuminating Powder, La Petite Robe Noire fragrance, Nude Perfect Cleansing Oil, Parfums Givenchy Dahlia Noir fragrance, Givenchy Noir Couture Mascara, Make Up For Ever Pro Finish Foundation.
Comments: Seems consumers just can’t get enough of the finer things in life. In an economy that many still say is suffering—or recovering—the allure of luxury items—both large and small—drove 2012 annual sales at LVMH Moët Hennessy to new levels. The world’s leading luxury products group recorded revenue of $37.1 billion in 2012—a whopping increase of 19% compared to 2011.
Perfumes and cosmetics, which account for 13% of the business, rang up sales of $4.8 billion.
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LVMH chairman Bernard Arnault said Parfums Christian Dior saw excellent performance in 2012, driven by flagship lines such as Miss Dior and J’adore. |
Bernard Arnault, chairman and CEO of LVMH, said: “2012 was another remarkable year for LVMH, especially in the context of the economic slowdown in Europe. All of our businesses demonstrated excellent momentum driven by innovation and the quality of their products, thereby strengthening their positions in traditional markets while continuing to develop in new ones. Looking beyond the appeal of our brands, it is the talent of our teams and their motivation that enables us to so effectively execute our strategy.”
Parfums Christian Dior saw excellent performance driven by flagship lines, notably Miss Dior and J’adore. Dior Addict Lipstick continued to attract consumers in its main markets and the skin care line called Prestige continued to gain ground. Guerlain’s new fragrance La Petite Robe Noire took an upward spin. Parfums Givenchy’s makeup line owed part of its success to its mascara Noir Couture. Benefit, Make Up For Ever and Fresh also continued their strong climbs.
The Selective Retailing business group recorded organic revenue growth of 14% in 2012, with Asian customers key to success. Three major concessions were won in 2012 at Hong Kong Airport and the concession at Los Angeles Airport was renewed. The opening in Hong Kong of a third Galleria was also a highlight of the year. Sephora continued to achieve an excellent level of performance and made market share gains across all its regions. Online revenue also grew strongly. In Europe, new stores opened for the first time in Denmark and Sweden. In the U.S., the renovation of several flagship stores in New York strengthened the appeal of the brand. Sephora continued its expansion in China while also renovating existing stores. Its first stores were opened in the high potential markets of Brazil and India. Sephora plans to roll out at least 50 stores in Latin America by 2016. The French beauty retailer also opened a store in India.
Mid-year 2013, Parfums Christian Dior signed actor Robert Pattinson as the new face of Dior Homme fragrance.
The first half of 2013 also proved to be good for LVMH, which posted recorded revenue of $17.8 billion, an increase of 6%.
The Perfumes & Cosmetics segment was up about 4% over the same period last year, reaching $2.3 billion. Parfums Christian Dior maintained good momentum, supported by its perfumes, including Miss Dior and J’Adore with Voile de Parfum. The makeup segment also made significant progress. Guerlain benefited from the continuing success of La Petite Robe Noire. Parfums Givenchy did well with its makeup line. Benefit and Fresh experienced rapid international development.
Duty-free shopping benefited from strong growth due to Asian clientele. The new concessions won in late 2012 in the Hong Kong airport made a major contribution to the increase in revenue.
Despite an uncertain European economic environment, Arnault said LVMH will continue to gain market share with numerous product launches planned before the end of the year, as well as its geographic expansion in promising markets, while continuing to manage costs.
