Wise strategic moves

Posted by Robin on 21 June 2019 Leave a Comment

Estée Lauder snapped up Le Labo and Frédéric Malle in 2014, and Puig acquired Penhaligon’s and L’Artisan Parfumeur in 2015. In 2016, Estée Lauder was back with the further acquisition of By Kilian, then L’Oréal stepped in with the purchase of Atelier Cologne. The following year LVMH took the plunge, with the acquisition of Maison Francis Kurkdjian.

They were wise strategic moves. The latest 2019 financial results from these companies reveal that not only are luxury artisanal brands experiencing some of the strongest growth in their portfolios, they are, in some cases, offsetting weaker performances in designer fragrances.

Bad news

Posted by Robin on 18 December 2018 7 Comments

Shoppers 35 and under want to smell like themselves, not everyone else, and that’s bad news for the many celebrity products that occupy the midrange. At the luxe end of the spectrum, consumers in the U.S., Europe and Asia — including young Chinese shoppers — want aspirational and unusual options.

— An explanation that fails to explain Le Labo Santal 33 (among others). Read more at Millennials Don't Want to Smell Like Celebs Anymore at Bloomberg.

No secret

Posted by Robin on 24 August 2018 19 Comments

Louis Vuitton has made no secret of its desire to build a beauty empire. The $465bn beauty market is set to increase to $750bn by 2024, according to Inkwood Research, and although last year Mintel reported that the fragrance category is only set to increase by about 1.4 per cent to £1.5bn by 2022, the blockbuster perfume remains a luxury lodestar. Chanel has built a $10bn-a-year business around a few key signature scents.

— Read more at On the scent: why Louis Vuitton is putting its faith in fragrance at Financial Times.

The default brand extension route

Posted by Robin on 10 August 2018 3 Comments

All of this means that designer labels have a legitimate shot at massive success with putting out their own makeup lines, and it's prompting many of them to do so in lieu of entering the fragrance market, which had historically been the default brand extension route.

— Read more at Are Fashion Brands Pivoting to Focus on Cosmetics Over Fragrance? at Fashionista.

Blocking online sales

Posted by Robin on 7 December 2017 2 Comments

Luxury goods makers may be able to stop retailers from selling their products on Amazon and other online marketplaces, after European judges said that cosmetics group Coty had not broken EU rules by blocking online sales on certain platforms.

— Read more at Luxury brands may block online sales, EU courts rule at Financial Times.

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Now Smell This

a blog about perfume

Wise strategic moves

Bad news

No secret

The default brand extension route

Blocking online sales