Spotlight on luxury: L’Oréal results suggest huge appetite for premium
In the global beauty giant’s recent financial results for the first half of 2017, its luxury division enjoyed strong growth.
“L'Oréal Luxe is confirming its excellent start to the year, driven by make-up and facial skincare, and has posted first-half growth of +10.5% like-for-like and +15.4% based on reported figures,” the company stated.
L’Oréal Luxe products are available at department stores, cosmetics stores, travel retail, but also own-brand boutiques and dedicated e-commerce websites. Its brands include Lancome, Giorgio Armani, YSL Beauté and Kiehl’s.
“L’Oréal Luxe opens a unique world of beauty; its international brands incarnate all the facets of elegance and refinement in three major specializations: skin care, make-up and perfume,” says the company.
Brands in front
Various of L’Oréal’s luxury brands were picked out in its overview of the half year results for their strong performance.
Lancôme is adding to its successes in lip make-up with L’Absolu Rouge and the recent launch of Matte Shaker, says L’Oréal. The brand’s anti-ageing sales are also growing thanks to its iconic lines Génifique, Absolue and Rénergie.
Yves Saint Laurent is especially expanding in make-up with Volupté Tint-in-Balm, the extension of the Vernis à Lèvres lip make-up range, and the phenomenal Cushion Encre de Peau foundation, and in fragrances with the women's perfume Mon Paris.
Giorgio Armani is accelerating its growth, and launching the Emporio Armani fragrance duo, while Kiehl’s, which is posting double-digit growth, is driven by its Calendula line.
On top of strong performances from these established brands in its portfolio, the recently acquired brands IT Cosmetics and Atelier Cologne are both growing rapidly, says L’Oréal.
Regional focus
L’Oréal says its luxury division is enjoying strong growth in the Asia Pacific Zone, driven by the rebound in China, where its brands are firmly established.
It also recorded a good first half in Western Europe, especially in Great Britain and Spain, with growth solid in North America and accelerating in Latin America.
In terms of retail channels, luxury performs particularly well across the board: L’Oréal Luxe has posted double-digit growth in Travel Retail, and is continuing to forge ahead in e-commerce, the company confirms.
