2023-07-29 16:00:04
In Shenzhen, China, in a 4,500 square meter store inaugurated on July 10, Galeries Lafayette has reserved 550 square meters for Edit Beauty, a space reserved exclusively for beauty product brands. So-called “niche” perfumes – including bottles costing more than 200 euros – feature prominently. A little earlier, in mid-June, La Samaritaine had opened a “Maison de parfums” in Paris. This department of precious bottles is installed in the basement, whose 3,400 square meters are reserved for beauty products. Obviously, Sephora, another subsidiary of the LVMH group, will also devote a good part of its store on the avenue des Champs-Elysées to it, being renovated for an opening scheduled for the end of 2023.
Indeed, the entire industry swears by its juices, eau de parfum and extracts, with very comfortable margins. Thus, Kering would have paid 3.5 billion euros to afford Creed perfumes, according to the Financial Times. The group, chaired by François-Henri Pinault, refuses to comment on this astronomical amount granted to the BlackRock fund, but recalls how profitable and present this brand is. “great potential”. This acquisition illustrates the ambitions of the French group which, at the start of 2023, created a beauty division and entrusted its reins to Raffaella Cornaggia, a former director of Estée Lauder.
At the end of 2022, the American group, world number two in cosmetics, got its hands on Tom Ford, a brand for which it has been producing beauty products since 2006. The operation, which enhances the designer’s brand American, former artistic director of Gucci, to more than 2.8 billion dollars (2.5 billion euros), allows Estée Lauder to integrate 100% of the turnover of the Tom Ford Beauty lines. In a press release, Fabrizio Freda, CEO of Estée Lauder Companies, said at the time that he wanted to reach “billion dollar turnover” with this brand known for its Orchid Noir, a perfume with an ebony bottle.
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This follows a battery of acquisitions. In 2015, the Spaniard Puig acquired L’Artisan Parfumeur and Penhaligon’s, two niche brands, whose bottles sell for 170 euros to 245 euros. Five years later, L’Oréal, manufacturer of La Vie Est Belle perfumes at Lancôme, got their hands on those of Clarins, including Angel de Mugler. Some analysts believe that the acquisition of Aesop, signed in April, expresses the desire of the group headed by Nicolas Hieronimus to further develop its sales of fragrances.
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