Middle East-Africa region will grow 4.7% to $12.4 billion and
Central and Latin America will grow 2.9% to $5.8 billion. To
boost results outside Japan, in March, Shiseido completed its
$1.7 billion acquisition of Bare Escentuals. The brand is attracting new department store customers in Japan and Shiseido
hopes to recreate the brand’s successful home shopping model
outside the U.S.
With an eye toward maintaining double-digit gains in China,
Shiseido is entering new categories to target new customers and
channels with the introduction of such hair care brands as Joico
and Shiseido Professional. The company expects the two brands
to reach 700 salons in Shanghai and Beijing by the end of 2010,
and 2,500 hair salons by 2014.
Last year, Shiseido entered Egypt, Morocco, Laos and Azerbaijan. This year, the company will enter Mongolia and plans to
develop“new markets in a few more countries” by next year, according to Maeda. Right now, Shiseido has operations in 74
The overall goal, as it has been for years, is to turn Shiseido
into a global brand that represents Asia with its origin in Japan,
according to company executives.
Sales: $3.8 billion
Bernard Arnault, chairman and chief executive officer; Pierre
Godé, vice chairman; Antonio Belloni, group managing director;
Nicolas Bazire, development and acquisitions
Fragrances, cosmetics and skin care products sold under such
brand names as Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Make Up For Ever and Benefit
Fragrances—Idylle, Ange ou Démon Le Secret, FlowerbyKenzo
Essentielle, Fahrenheit Absolute, Crescent Row, Magnolia Nobile, Aire Loco, Play for Men; Skin care—Instant Rescue Eye
Treatment, XP Nuit, Le Soin Noir anti-aging cream; Cosmetics—Rouge G lipstick, Phenomen’Eyes mascara, Hello Flawless
Fragrance and cosmetics sales may have fallen 4.4% last year,
but LVMH increased profit and market share during the downturn. By region, Europe (excluding France) accounted for 39% of
Fast Fact: Bernard Arnault, the founder, chair- man and chief executive officer of LVMH, is the richest man in France. A 55% jump in his net worth last year put his fortune at $28.6 billion, ac- cording to Challenges, a business magazine.
sales, followed by France, 17%; Asia (excluding Japan), 16%;
other, 13%; U.S., 8% and Japan, 7%. By category, perfumes represented 53% of sales, followed by cosmetics, 28% and skin care
LVMH management isn’t waiting for the economic uncertainty to end to boost sales and market share. Each brand has a
specific objective to achieve going forward. For example, Parfums Christian Dior will concentrate its efforts on its priority
markets and the development of its exceptional image. The
launch of Capture Totale One Essential serum is expected to
provide a lift.
Guerlain will continue to expand, primarily in France and
China. It will build on its luxury image and support core products such as Shalimar and the new Idylle perfume.
Parfums Givenchy is focused on developing the Play line
and the upcoming launch of a new anti-aging product.
Kenzo celebrates its 10th anniversary this year with new
communication tools and advertisements.
Make Up For Ever will drive growth via HD and Aqua, as
well as the launch of new lipgloss and lipstick products.
For the first quarter of 2010, corporate sales rose 11% to $6.1
billion. Perfume and cosmetic sales increased 11% to $1 billion.
Sales were helped along by the popularity of Fahrenheit and
Miss Dior Chérie fragrances, Capture Totale One Essential skin
care and DiorShow Extase mascara.
Last month, LVMH announced it had acquired a 70% stake
in Sack’s, the leading online retailer of fragrances, cosmetics and
toiletries and one of the leading companies in the whole specialty beauty distribution sector in Brazil. The move marks
Sephora’s entry into the Brazilian perfumes and cosmetics market, one of the largest and fastest-growing beauty markets
Founded in 2000, Sack’s carries more than 270 brands and its
client portfolio comprises more than 830,000 customers. Sack’s
is one of the top-three most frequently accessed pure-play
e-commerce sites in Brazil, with four million unique visitors
each month, according to LVMH.