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    The Most Popular Luxury Brands Began To Shift Their Businesses.

    2016/7/17 9:58:00 55

    Luxury BrandsDiorLV

    Christian Dior benefited from the success of Sauvage, logo perfume J'adore and Miss Dior, and gained strong growth results in the first quarter.

    Including fashion and beauty perfume, the total turnover of Christian Dior will exceed 5 billion euros this year.

    Through the first quarter earnings report of LVMH, the world's largest luxury goods group, Christina Binkley, a fashion column in the Wall Street journal, points out that consumers nowadays do not seem to like shopping for handbags, but their consumption is increasing. In the current situation of fashion retailing, perfume business has become the most resistant and profitable business of all luxury brands.

    The perfume business of luxury brands is divided into autonomous and authorised ways. In the United States and Europe, the perfume industry, including the luxury brands that authorize external production, can create at least $6 billion or $10 billion a year.

    In the face of sluggish earnings, luxury brands are gloomy. However, compared with the fall of the performance of handbags, the earnings of various groups still tend to rise slightly, among which the Savior is called the "profit cow" perfume business.

    According to the bain consultancy report, sales of luxury watches, clothing and jewelry have slowed down. The trend of global luxury sales has not been reversed. It is pointed out that when the economy is in recession, female consumers will reduce the purchase of luxury goods and shift the focus of consumption to cosmetics. The sales of perfume are similar to those of cosmetics, especially the sales of high-end perfume.

    Comparing LVMH's leather products and fashion department's performance growth in the first quarter of 2016, the cosmetics and perfume business became the highlight of LVMH group's performance. Its revenue accounted for 14.1% of the total revenue and the organic growth of its revenue was 9%, of which Christian Dior benefited from the extraordinary success of Sauvage, logo perfume J'adore and Miss Dior, and gained strong growth data. The launch of the new Poison Girl perfume series was also successful.

    On the contrary, the growth of Christian Dior's fashion business was stagnant. In the first three months of March 31st, the company's turnover fell by 1% to 429 million euros, which was mainly affected by the weakness of several Asian markets.

    Luxury brand Chanel is non-listed company, but there are foreign media analysis of Chanel can be such a prominent performance, especially its high profit margins, the main contribution comes from its beauty and perfume business.

    Chanel fashion President Bruno Pavlovsky, who interviewed Reuters in Cuba in early May, confirmed that Chanel has slowed down its turnover this year. But according to the latest luxury analysis data, Chanel beauty and perfume business growth is still strong. Last year, the profit was about 700 million dollars, accounting for more than 56% of the total business of Chanel, of which No.5 perfume was the best. The perfume called the world sold one bottle every 30 seconds.

    Shoe brand Jimmy Choo also can not sit back and see the rich perfume profits last year launched a new perfume Illicit, perfume manufacturing company Interparfums holds this Jimmy Choo perfume license, according to the industry forecast, this perfume in the last quarter of the Christmas season earned 40 million to 5000 dollars monthly income, the first year of the launch can reach to 100 million dollars.

    As an entry level and easiest product, perfume has become a stepping stone to luxury brands, and almost all of the familiar luxury brands are almost without perfume.

    2011

    Valentino

    And Fendi launched the first perfume. In 2013, Burberry launched its first independent perfume. In 2015, Miu Miu will launch its first perfume. In September this year, in order to increase profits, LV introduced perfume again after 70 years.

    LV brand CEO Michael Burke also admits that this is not just a simple perfume, it will be a business opportunity for the brand. Perfume itself is a very good business. LV has introduced four different perfumes between 1920s and 30s. According to the insiders, the LVMH Group Chairman and CEO Bernard Arnault of its parent company attaches great importance to this business recovery and market opportunities.

    According to fashion headline data, at least 320 new products are released in the high-end perfume market every year, and luxury brands also speed up the release. Dior has launched at least 30 fragrances in the past 20 years.

    Whether it's fashion, jewelry or leather goods or accessories, a variety of perfumes have become an integral part of luxury brands.

    According to one data, the global perfume market is expected to reach US $45 billion 600 million in 2018. Increasing the profit of perfume products has become the magic weapon for many luxury brands to improve their performance and balance their business.

    Largest in the US

    Luxury goods

    Niemann Kelly St. John, vice president of Neiman Marcus of department store, said that the growth of high-end perfume is quite amazing. Many brands of perfume are on the market, and this autumn's heavyweight new products include Chanel's No.5 fragrance series and YSL Mon Paris's performance.

    According to the latest US cosmetic market data, perfume has become the fastest growing subdivision category of cosmetics. So far, perfume has gained two digit growth in the first six months of this year. Among them, luxury brands like Hermes and Dior have strong customer base. These consumers are attracted by brand "rich series products" and "excellent brand stories".

    In addition, thanks to product innovation and the rise of the millennial self timer,

    Social media

    The beauty bloggers are also on the rise, which further promotes the consumption of cosmetics and perfume.

    Some analysts explained: "now, the millennials enjoy enjoying the rich traditional history of these brands and feeling the process of brand culture. They are willing to buy luxury brand perfume because they love the story behind the luxury brand, and the millennials want to create personalized perfume."

    Shelley Rozenwald, senior vice president of Canada's Chain Corporation, especially pointed out that the new perfume performance of Chanel, Dior, Burberry and Prada will be exceptionally good during the festival. Their new products and creative products are very fresh and are attracting strong interest from young consumers.

    According to NPD Group data, the top 25 perfume brands grew by more than 12%.

    In addition, the niche luxury perfume industry is getting the favor of the beauty make-up giants, and has begun to purchase the income bag to expand the scale of the perfume market.

    At the beginning of this month, L'OREAL group bought perfume brand Atelier Cologne, Estee Lauder also accelerated the process of minority perfume brand expansion, and acquired independent minority perfume brands including LE LABO, RODIN olio lusso, EDITIONS DE PARFUMS FREDERIC, etc. Estee Lauder group emphasized earlier that it is now the best market opportunity to develop perfume into the fastest growing category of the company.

    However, compared with overseas markets, China's perfume market is far from mature and has great potential. According to the third party data, perfume only accounts for about 5% of China's cosmetics market. Currently only about 47% of Chinese women occasionally use perfume. Perfume is still relatively new for the Chinese market. Perfume business will become the most resistant business of luxury brands in the depressed market environment of handbags and garments.


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