FROM EXANE BNP & PROMISE CONSULTING - SEPTEMBER, 07, 2016

Luca SOLCA
Managing Director
Sector Head Global Luxury Goods
Rue du Rhône 80, 1204 Genève, Switzerland
Tel: +44 203 4308503
Mob: + 44 7881249464
luca.solca@exanebnpparibas.com

Luxury goods brand desirability in America shows domestic and aspirational bias
We find a number of surprises and a few confirmations in the results of our extensive consumer investigation in America: 1) Americans like their local champions; 2) Americans seem more attracted by fashion brands; and 3) Our analysis confirms a strong accessible luxury bias among American consumers.

Luxury brand exclusivity perception is also quirky
Prada, Versace, Louis Vuitton, Gucci and Giorgio Armani lead the group - with Hermès coming in only 6th place. Louis Vuitton, Burberry, Prada and Versace look strong, as they boast higher desirability than purchase - a convergent indicator of exclusivity perception.

We are adding 'brand identity' analysis to our desirability and exclusivity research
Louis Vuitton and Gucci rank in the top 5 of all brand identity traits we have investigated, with the exception of 'elegance', in which Chanel and Prada lead.

Investment conclusions
Our analysis of brand desirability and exclusivity in America reminds us of how important mega-brands remain in this industry. Louis Vuitton stands out as the strongest brand by far, followed by Gucci, which seems to have lost some of the vigour of a few years back but is likely benefiting from its successful and thorough turnaround. These results reinforce our positive ratings on both LVMH and Kering.

Ask for the full document : philippe.jourdan@promiseconsultinginc.com

Eye on the Trends in Asia: customisation

By Lucy Whitehouse +, 20-Jul-2016, cosmeticsdesign-asia

Four key trends are tipped to define the skin care market in Asia in the coming years, according to research from Euromonitor International. In this series of specials, Cosmetics Design takes a closer look at each, starting here with customisation.

According to a research analyst with Euromonitor based in Singapore, customization is defined as key trend, since the consumer demand for personalized skin care products is growing. Indeed, 50.5% of the respondents claimed ‘suited to my skin type’ as the decisive element during their last skin care purchase.

In China there are five key areas in which personalization is strongly demanded:

• Age
• Moisture balance
• Ethnicity
• Gender
• Lifestyle

Consequently, the article outlines the importance of catering to consumers’ specific needs related to ethnicity and offering products that correspond to the consumers’ local environments, climates and cultural beliefs and identities.

[READ THE ENTIRE ARTICLE]

Louis Vuitton Releases a Transportative New Fragrance Line, Complete with Léa Seydoux as Muse

By Jane Larkworthy+, 18-08-2016, wmagazine.com

It's been 70 years since storied label Louis Vuitton last put out a fragrance. Now they're back, and they've recruited perfume genius Jacques Cavallier, who created already game-changing scents as Issey Mikake’s L’eau d’Issey and Stella by Stella McCartney to revive the Louis Vuitton line with French actress Léa Seydoux as muse.

Interestingly, high fashion brands launch at least one or two fragrances per season and Louis Vuitton stayed out of the business for so long. But Louis Vuitton hired its first in-house perfumer Jaques Cavallier-Belletrud in 2012, who finished his lab in Grasse this year with 7 luxurious and exclusive scents; a collection entirely based on flowers.

“The philosophy of my creations are to celebrate femininity,” Cavallier explained at a recent presentation. “A lot of people ask me if I think of a very precise type of woman when I create a perfume, and I always say no. Every woman is different.” So different, in fact, that two of the scents lean rather far into the classic men’s arena with notes of leather and woods (Contre Moi and Matière Noire, respectively).

[READ ENTIRE ARTICLE]

LF Beauty: meeting Asian consumers' needs has 'never been more challenging'

By Lucy Whitehouse +, 13-Jul-2016, cosmeticsdesign-asia

The president of LF Beauty, a third party manufacturer and supplier, has spoken of the challenges and opportunities being posed for beauty by the Asia market.

The article outlines that it has never been more challenging, while there have never been more opportunities for brands to satisfy the customers’ needs. According to Raymond “Asian beauty is now setting the pace for the world”. China’s customers have a rising demand for K-beauty products, whereby Korean brands face the challenge of acting with insider knowledge of the Chinese market.

Indeed, the Korean International Trade Association found out that Korean companies accounted for 22.1% of China’s imported cosmetics in 2015, closing the gap with the French who have a market share of 30.6%. During the first seven months of the year, China’s imports of cosmetics products rose 36.1% to $1.67 billion.

[READ THE ENTIRE ARTICLE]

What is halal skin care and makeup, and what are the trends?

By Lucy Whitehouse +, cosmeticsdesign-europe, 06-Jul-2016

Halal is becoming big business for the beauty industry globally, and particularly in Asia: a central focus for this week’s in-cosmetics Korea event, we take a closer look at the trend.

Kunal Mahajan, project manager of Chemicals & Energy at Kline - top management consulting firm serving the Chemicals industry globally – explains in the article that “halal” can not only be associated with food and beverages, but that its denomination is equally appropriate for pharmaceuticals, personal care, skincare and hair care products.

But what makes a product halal and why does “halal” become a trend in cosmetics?
Mahajan outlines the answers in detail in his article: The key contributors to this trend is economics and the changing consumer lifestyle.

According to Mahajan, top growth regions for halal products will be the Middle East and Asia, particularly South Asia and Southeast Asia.

[READ THE ENTIRE ARTICLE]

Hermès investit le capital de Pierre Hardy

By Romain, 13-juillet-2016, Journal du Luxe, Business

Hermès vient d’acquérir une « part minoritaire » de la société de chaussures et d’accessoires haut de gamme Pierre Hardy. Le taux de cette part n’a toutefois pas été communiqué.

Hermès a toujours eu pour habitude de soutenir stratégiquement et financièrement les designers avec lesquels il travaille. Le groupe avait par exemple acquis une part de 30% du capital de Jean Paul Gaultier en 2003. Une part vendue à Puig en 2011 après la fin de la collaboration entre les deux entités. La société est également devenue propriétaire du cordonnier britannique John Lobb.

Le fruit de 25 ans de collaboration

L’investissement de Hermès dans le capital de Pierre Hardy intervient après plusieurs années de collaboration entre les deux entités.

Hermès affiche ainsi son ambition de contribuer au plan de croissance de Pierre Hardy et de consolider une relation étroite avec le concepteur de chaussures haut de gamme. La Maison Pierre Hardy enregistre actuellement une croissance importante du fait de la hausse de la demande de chaussures.

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