Vicinity Centres’ Post

Luxury brands have historically mastered the art of diversification to navigate economic shifts. Venturing into skincare and color cosmetics allows these brands to offer entry-level products, making luxury more accessible to a broader market. This strategy enables a larger audience to engage with the brand and fosters a sense of belonging to the luxury universe. Prada stepping into the cosmetic space is a great example of this, as highlighted in Forbes. The brand aims to offer a multidimensional and relatable luxury experience that considers both real-world and digital aspects. This aligns with the contemporary values of consumers and showcases Prada's commitment to innovation. #LuxuryBrands #ProductExpansion #Beauty

💫 Chanel 2023 International Beauty Group Financial Report Series 💫 ❤️ According to Chanel's 2023 financial report, thanks to the strong growth of all product lines, Chanel Group's revenue in 2023 will reach US$19.7 billion, a year-on-year increase of 14.6% from 2022, a record high. Among them, the full-year operating profit was US$6.407 billion, a year-on-year increase of 10.9%. ❤️ All divisions of the Chanel Group achieved double-digit sales growth, with fashion, fragrances and jewelry performing particularly well. and also grew in all regions. ❤️ Although Chinese consumers tend to shift consumption to other markets, the group still plans to invest in opening more stores in the mainland Chinese market in 2024. from:https://lnkd.in/g5EYwndb #chanel #business #beauty market #luxury industry

French fashion house CHANEL is unleashing a variety of cosmetic products with corresponding marketing materials. Uplifting the launches of a Coco Mademoiselle fragrance, spring 2024 makeup collection and Sublimage skincare line are a trilogy of vastly different campaigns. Spanning behind-the-scenes looks, product walkthroughs and more traditional advertising ventures, the promotions could appeal to a large and varied audience of luxury consumers. Read the full article: https://bit.ly/43xUDNO #LuxuryDaily #LuxuryNews #Chanel #ChanelNews #FashionNews #LuxuryBeauty #BeautyNews #LuxuryFragrance #MarketingNews #LuxuryMarketing

I was interested to read that #DolceandGabbanabeauty, just over two years after it was brought in-house has reached €1.5 billion in sales and just rolled out its new makeup line. For Dolce & Gabbana, the step was a bold move and an “important step” in the ongoing development of the brand’s “assets, skills and responsibilities”, Alfonso Dolce told #Vogue. Few fashion companies have successfully managed their beauty businesses internally, however for those who have succeeded like #Chanel and #LVMH the rewards are high. LVMH’s performance in 2010, generated about €3 billion in sales from beauty and perfume, with profit of €332 million. By 2021, that had grown to €6.6 billion in sales with a profit of €684 million. This is a good time to act. The global luxury beauty industry is showing strong growth and will be worth $69 billion by 2025, according to the Bain Altagamma 2021 luxury study. “The beauty market is booming and Dolce & Gabbana recognises this,” says Ekstract. Traditional distribution channels are also evolving as consumers buy more beauty products online, he adds. “The retail model has changed. Brands are not as dependent on brick-and-mortar or high-end department stores where most of the sales took place in the last decade.” It will be interesting to see if other beauty brands follow this lead from Dolce & Gabbana. Please do share your thoughts below. #beauty #dolceandgabbana #chanel #lvmh #trends

‘Let them cake in make-up’ Celine are set to release a lipstick in time for Christmas with the rest of the line due in Spring 2025. Luxury brands getting into make up is nothing new. Dolce & Gabbana having released their range earlier this year and Miu Miu also set to release a line next year. That’s on top of Hermes, Gucci, Armani and Prada already. It is very clear, escalating prices since 2020 has forced brands to diversify, to keep middle class shoppers. Or any customers wanting a taste of luxury. Very much a case of clothing for the super rich and beauty for everyone else. And in fairness margins are huge on make-up. Victoria Beckham’s make-up has transformed her bottom line. It is a no-brainer to leaverage brand power through high markup items. Though we might have some over saturations. Plus with the facade uncovered at Dior, how many lipstick do we really need for Christmas? How are smaller brands suppose to compete? #luxury #brands #businessoffashion #pricing #beautyindustry https://lnkd.in/eVF4qU9v

Richemont Creates New Beauty Division, Doubles Down on High-End Fragrance. The luxury group is looking to boost its in-house expertise — a move that could spell trouble for the likes of Coty and Interparfumes, which currently manufactures many of Richemont’s brand fragrances. “Luxury brands are tapping into the beauty category to penetrate a wider consumer audience after increasing the prices of their main lines by more than [double digit percentages],” Bernstein analyst Maria Meita wrote in a note to clients. “However, beauty doesn’t come without its challenges: it requires scale.” In such a crowded and competitive luxury market, showcasing a consistent, coherent brand identity across all products and services is more critical for the industry than ever before. The setup has worked well for sector leader LVMH, which produces cosmetics and perfume for its own brands like Dior and Loewe as well as a private label line for SEPHORA. It has also incubated new brands like Fenty Beauty. Last year, LVMH’s beauty division, which excludes Sephora revenues, generated €7.7 billion, or $8.2 billion, in revenue. For more on this top story from 2023, click the story from The Business of Fashion. #lvmh #dior #burberry #sephora #cosmetics #fragrance #chanel #louisvuitton #loewe

For beauty brands aiming to build lasting influence and diversify their product lines, expanding into the fragrance category is becoming a solid route to retain customers. While the fragrance category has long been dominated by luxury fashion houses with iconic staples like CHANEL N°5, Parfums Christian Dior, (J'Adore), Replica by Maison Margiela  and Gucci Bloom maintaining a significant share of the market. Indie beauty brands like MERIT, Glossier, Inc. and celeb beauty favorites - Charlotte Tilbury Beauty & Fenty Beauty have stepped out to craft their own unique edit of fragrances. I love how these fragrance launches are not only telling stories but also positioning these brands as lifestyle leaders in beauty, aiming to build multi-generational connections and solidify their place in the industry. Read more of my thoughts here: https://bit.ly/3CtkVav

Luxury Fashion Brands Enter the Beauty Industry Amidst Increasing Competition The luxury makeup market has shown remarkable growth post-pandemic, defying economic challenges. According to Circana, the US market surged by 15 percent in the first half of last year, reaching $14 billion, outpacing other luxury sectors like handbags and whiskey, which experienced slumps in revenues, as reported by Knight Frank. Notably, the luxury makeup sector surpassed the regular makeup market’s growth rate of nine percent in the first half of 2023. In response to this trend, numerous luxury fashion brands have announced their foray into the beauty industry. Prada’s licensing deal with L’Oreal, Celine’s lipstick line under LVMH, and the introduction of Rabanne Beauty in stores are some notable examples. This strategic shift reflects a recognition of the significant business opportunities within the beauty market, as highlighted by Sandra Nait-Amer, managing director at Rothschild & Co during Beauty Independent’s recent Dealmaker Summit EU/UK 2023. The growth trajectory of the beauty industry is expected to be marked by “premiumisation,” with... https://lnkd.in/dWbAYugm

Chanel achieves an impressive milestone with $20 billion in sales for 2023, marking a significant triumph in the beauty industry. Here's why this achievement stands out: 1. Luxury Dominance: Chanel's exceptional sales underscore its dominance in the luxury beauty market, reflecting the brand's enduring appeal and the unwavering demand for its high-end products. #LuxuryLeader 🏆💄 2. Innovative Offerings: Chanel continues to captivate consumers with innovative make-up and skincare solutions, combining cutting-edge technology with timeless elegance to set new standards in beauty. #BeautyInnovation 🌟💅 3. Global Reach: With a robust global presence, Chanel's success in 2023 highlights its effective market strategies and ability to resonate with diverse audiences across different regions. #GlobalIcon 🌍✨ Celebrate Chanel's remarkable achievement as it sets a new benchmark in luxury beauty sales, showcasing the brand's unparalleled influence and commitment to excellence. 🎉💖 #ChanelSuccess BTW, if anyone reading this is trying to launch or grow their brand in fashion, beauty, or luxury - please check us out and inbox us. We're a pretty big deal, and we love to build empires. Best! https://lnkd.in/eaMsk-_k

ARE BRANDS GOING MASS AS THEY LAUNCH "BEAUTY" For the longest time Beauty was dominated by Parfums Christian Dior CHANEL and TOM FORD TOM FORD BEAUTY in the premium segment. These products gave a lower entry point for people to experience Luxury. The current downturn in Luxury has thrown fashion out of the whack, but seems to have spared the Beauty segment. Perhaps the lower entry points, and the daily need of women to apply makeup, and wear perfumes is the reason. LVMH's Sephora business didn't decline, while other maison's have declined in the last 2/3 quarters. Tom Ford beauty has not declined Kering's Luxury brands dropped 27% sales in Q3 2024, while the beauty, and Eyewear segment grew! Under pressure executives are looking for initiatives they can take to salvage the situation. And this is the result: 1. Balmain new Fragrance colletion launched in August 2024, Makeup to be launched next 2. CELINE launched Celine beauté makeup in October 2024 3. Prada Group launched its makeup line last year, 2023 Year 2025 is going to see launches from: BALENCIAGA Marc Jacobs Miu Miu and Alexander McQueen across beauty and fragrances. While this is another attempt to find some green on their financial statements, should there be more focus on Going back to the roots of true luxury, re focus on what the brands stands for, deliver that promise day in and day out, make the "EXPERIENCE" unforgettable, and build TRUST. Isn't the Combination of AUTHENTICITY + TRUST the real promised luxury? What do you think? #luxury #businessofluxury #trust #authenticity