- 2024-07-25
- 阅读量：3901
- 来源｜Cosmetic Business Online
- 作者｜Liu Jia Hui
The beauty business continues to grow.
Paris time on July 23, the French luxury giant LVMH Group released a report on the results of the first half of this year: in the first half of 2024, LVMH revenue of 41.677 billion euros (about 327.887 billion yuan), down 1% year-on-year, with a 2% increase in organic revenue. Recurring operating profit of 10.7 billion euros (about RMB 84.336 billion RMB), operating profit margin of up to 25.6%, significantly higher than the level before the new crown epidemic, but the exchange rate fluctuations on the half-year period had a substantial negative impact.Regionally, Japan was the fastest-growing region, with first-half sales up 44% year-on-year; the U.S. and Europe grew 2% and 3% year-on-year, respectively; and the rest of Asia (excluding Japan) declined, down 10% year-on-year, making it the only region in decline.
In terms of market share, the Japanese market increased its contribution to the Group from 7% to 9%, while the contribution of Asia (ex-Japan) decreased from 34% to 30%. The European (ex-France) and U.S. markets both grew by 1 percentage point, while France and the rest of the world remained unchanged.
By business, the perfume and cosmetics division grew 6% organically to 4.136 billion euros (about 32.6 billion yuan); the boutique retail division, in which Sephora is located, grew 8% organically with revenues of 8.632 billion euros (about 68.037 billion yuan); the wines and spirits division and the watches and jewelry division slipped 9% and 3%, respectively; and the fashion and leather goods division grew 1% organically.
01
Strong growth in the perfume and cosmetics business
Adherence to selective distribution strategy
The Perfumes and Cosmetics business unit grew steadily, driven by the continued success of its flagship products, a strong innovation drive and a selective distribution policy.
Specifically for the brand, Christian Dior performed well across all product categories, reinforcing its leadership position in strategic markets, with strong performances from its iconic fragrances Sauvage and J'adore, as well as the new version of Miss Dior. The Makeup business delivered strong growth driven by Addict, Forever and the relaunched Rouge Dior. With the Prestige and Capture collections, Christian Dior performed solidly in skincare, particularly in the high-end skincare market in Asia.
Guerlain fragrances performed strongly, particularly Néroli Plein Sud in the L'Art etla Matière Haute Parfum collection; Givenchy fragrances maintained sustained growth, driven by its L'Interdit.
In addition, Benefit added brow products to its Precisely, My Brow line; Fenty Beauty launched a new line of hair care products and expanded its retail presence in China.
02
Boutique retail division up 8%
Sephora performs well
The Boutique Retail segment grew organic revenue by 8% in the first half of 2024. Sephora achieved significant growth, with continued strong growth in North America, Europe and the Middle East. Sephora continues to gain market share, further strengthening its position as a leading global retailer of fragrances and cosmetics.
DFS has been slow to recover, still below the level of the 2019 epidemic, and there are significant differences in visitor traffic between different regions, with Hong Kong, China, Macao, China and parts of Europe seeing a recovery in visitor numbers, and DFS performing strongly in Japan and at US airports. In addition, DFS has made moves in China with the opening of a new “Beauty Collective” space in Hong Kong, China, offering a one-stop shopping experience, and the planned opening of a shopping mall in Yalong Bay, Hainan Island, which is also in the construction phase.
Commenting on the Group's first-half results, Bernard Arnault, Chairman and Chief Executive Officer of LVMH, said: “In the face of economic and geopolitical uncertainty, the responsiveness of our brands and their teams has given LVMH exceptional resilience. With our dual focus on aspiration and responsibility, we remain committed to achieving the objectives set out in our environmental and social action plan. Despite the uncertainty of the current environment, the Group is confident about the second half of the year and will rely on the dynamism of its teams to further consolidate our global leadership in luxury in 2024.”
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