Watch out fragrance world, Puig is on a tear. During the past five
years, the firm has increased its global marketshare of the prestige
perfume industry from 3.7% to 7%. The company contends it has
been responsible for 35% of the industry’s global growth during
the past five years.
In 2010, Puig generated net revenues of $1.6 billion, with its fashion business accounting for a quarter of that. Even though Spain remains the main market for Puig, 75% of its net revenues came from
international markets. Five years ago international markets represented 62%. Net profit attributed to the group was $172 million, a
57% increase on the previous year, according to the company.
Success last year came from what Puig called“extraordinary
growth” of the Paco Rabanne brand, thanks to One Million, a
scent which has occupied top positions on global bestseller lists
since its debut in 2008. Company officials also had accolades for
the launch of Lady Million, 212VIP by Carolina Herrera, L’Élixir
de Nina by Nina Ricci and the eau de toilette of Infusion d’Iris
Other 2010 highlights came from its other scent stories,
specifically Adolfo Domínguez (Bambú Mujer and Colección
Privada), Antonio Banderas (The Secret) and Shakira (S by
Shakira) in the Spanish market, which enabled Puig to maintain
its leadership position in the category.
Puig has projected its 2011 sales will exceed $1.7 billion, fueled in part by upcoming fragrance launches from the likes of
Valentino (the firm took over the designer’s fragrance licensing
from Procter & Gamble earlier this year) and Prada, which is
rolling out Prada Candy this Fall.
In May, Puig bolstered its position in fashion when it acquired majority control of Jean Paul Gaultier, purchasing the
45% stake held by Hermès International and roughly 15% from
the founding couturier. However, Gaultier’s lucrative fragrance
license is currently held by Beauté Prestige International, a subsidiary of Japan’s Shiseido, in a deal that runs until 2016.
Sales: $1 billion
Reinold Geiger, chairman and chief executive officer; Emmanuel
Osti, managing director; André Hoffmann, managing director,
Asia-Pacific; Thomas Levilion, group deputy general manager, finance and administration.
Body care, face care, fine fragrances, hair care, toiletries and home
fragrance products. L’Occitane International also own Melvita.
For its most recently concluded fiscal year (March 31, 2011), L’Occitane International’s sales rose an impressive 26.1%, reflecting net
sales growth in most business segments and geographic areas. Operating profit increased 19.9% to nearly $175 million.
“During the year, we continued to implement our strategic plan
in boosting sales growth and strengthening our presence globally
through accelerated store openings as well as putting in place in-
vestments for future growth and developments,” said Reinold
Geiger, chairman and CEO.“As a result, we delivered solid per-
formance across the board especially in emerging markets such as
China and Russia.”
In fiscal 2011, the company increased the total number of retail
locations from 1,541 to 1,828 and the number of its own retail
stores jumped to 895 from 764. The latter includes 50 additional
stores in Asia, ( 24 in China, 11 in Japan and four in Hong Kong),
58 in Europe and 23 in the Americas.
In the Asia-Pacific region, a marketplace where L’Occitane has
accelerated its network expansion, combined sales in Japan, Hong
Kong, China and Taiwan accounted for 41.9% of L’Occitane’s total
sales in fiscal 2011.
By business segment, net sales contribution from the“Sell-out,”
“Sell-in”and B-to-B segments were $753 million, $236 million and
nearly $33 million respectively.
R&D expenses for the year increased 27.4%, according to the
According to Geiger, looking forward, L’Occitane will further develop the awareness of its brands and the ability to attract more traffic into its stores, significantly increase customer
base in its key developing markets including Brazil, China, Russia and Korea, and focus on further development of its US business.
L’Occitane owns organic beauty
firm Melvita, which in 2002
became one of the first
companies to earn the
Ecocert certificate for