According to news publication on the region; the Economic Times, Sephora is currently in talks with DLF Brands as the Singapore based representative of LVMH ‘L Capital Asia’ is unhappy with how the Genesis Luxury Group is being run, and wants out.
The situation is said to be one of several ‘feuds’ between the two companies and now sees LVMH asking the Genesis founder to buy back its 40% stake in the company or to sell off the luxury brands marketing firm altogether.
The publication also reported that the private equity firm feels that the management of the company is indifferent to its suggestion and follows allegations of financial mismanagement last year which founder Sanjeev Narula in the courts.
Back in 2008, LVMH began the marketing and distribution of international luxury brands through its unit Genesis Luxury, and seen the first Sephora store opened in New Delhi last year.
Asian markets continue to provide lucrative opps for the brand
The French Luxury Group reported its revenue growth to have been driven by strong sales in Asia in 2012 thanks to its perfume and cosmetic divisions despite a challenging economic environment in Europe.
The company said that sales grew by 12 per cent on a reported basis, up from €803m to €899m, a figure that represented an increase of 9 per cent in organic terms.
Growth in other divisions was led by the selective retailing division, which recorded a 28 per cent growth during the quarter to €1.82bn, a figure that was driven by the continued expansion of the Sephora cosmetics and perfume store network, worldwide.
Whilst overall, sales for the quarter grew by 25 per cent on a reported basis to reach €6.58bn, which represented an increase of 14 per cent in organic terms, which took into consideration negative currency translations.