LVMH targets Asia for premium cosmetics expansion

At LVMH’s newest cosmetology center in Orleans this week, the company’s MD revealed its’ plans to expand in the 77-billion-euro a year ($104 billion) global premium cosmetics market on the Asia Pacific region.

The luxury group remains on the lookout for more acquisitions in skin care, but has made potential growth in the region one of its main focuses, particularly with the Asian launch of its US beauty brand ‘Fresh’.

LVMH founded 'Fresh' back in 1991 which has since expanded from a line of opulent soaps to a full skin care and fragrance range. The company also has plans to roll out the brand on the European markets in the coming years.

On being asked if it would be interested in Clarins if it was up for sale, managing director Antonio Belloni said the company favours smaller businesses with more room to grow.

"We remain open to acquisitions" in the field of cosmetics, Belloni told Reuters at the inauguration of the new centre. "But for now we are focused on rolling out Fresh in Asia."

New facility to concentrate on securing new patents

The facility ‘Hélios’ - in reference to the sun, is completely dedicated to research and innovation, where researchers from the Maisons of Parfums Christian Dior, Guerlain, Givenchy Perfumes and Fresh will be based.

The 250 researchers based at the new facility will be developing new processes and securing new patents in the fields of cosmetics and the beauty sciences.

More than 20 fields of research will be represented at the centre, including: molecular and cell biology, physical chemistry, ethnobotany, sensory analysis, formulation, toxicology and histology, among many others.

Bernard Arnault, Chairman and CEO of the LVMH Group, said: “This state of the art facility is representative of the strategy of the Group and our ambition to consistently reinforce and expand the savoir-faire behind our businesses in France.”

Elsewhere, Christian Dior Parfums head Claude Martinez also revealed at the inauguration that half of the 3.6 billion euros in revenue generated at LVMH's perfume and cosmetics unit last year came from the CD brand, with around 20% from Guerlain and 10-15% from Givenchy.