LVMH 2020 . P e r f u m e s & C o s m e t i c s

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2020 Review

Continuous innovation and rapid growth in online sales

In a sector suffering from the decline in international traveller spend and makeup, LVMH s major brands chose to be selective in their distribution and, unlike certain competitors, limited promotions and refused to sell indirectly to the Chinese parallel market, which presents major risks to the medium term desirability for brands that follow that route. The Perfumes and Cosmetics brands are showing good resilience resulting from the growth of skincare and online sales, particularly in Asia. Parfums Christian Dior saw a gradual improvement in the second half of the year, underpinned by the success of its new products Miss Dior Rose N Roses and J adore Infinissime in perfume, and Rouge Dior in makeup. Guerlain benefited from the remarkably dynamic skincare market, with the continued success of Abeille Royale and Orchidée Impériale. The new skincare brand Fenty Skin, developed by Rihanna, is off to a very promising start.

2021 Outlook

In an environment that remains uncertain, LVMH s Maisons will remain vigilant in light of the economic situation, reaffirm their fundamentals and focus their efforts on their strategic development priorities: innovation, utmost quality in their products, the constant pursuit of excellence and selectivity in distribution, and developing their digital presence. Parfums Christian Dior will maintain its strong innovative momentum across all of its product categories while continuing to expand its global reach and further raise the bar for creativity and excellence. Fragrances will be the focus of particular attention, with the ongoing devel- opment of its iconic lines, combined with a unique customer experience both in stores and online. Building on the Maison s couture spirit, makeup will undergo a robust innovation program and upmarket strategy. Skincare will continue to make strong advances, with an emphasis on premium lines, particularly in China. Guerlain will expand further internation- ally, in particular by raising its profile in China, Japan, the Middle East, and in travel retail once business activities resume. The Maison will focus on developing its core lines, which will be enriched with bold new creations. Guerlain will showcase its position as a Maison at the forefront of high perfumery and luxury cosmetics by rolling out a new store concept and a more selective distribution strategy. At Parfums Givenchy, Le Soin Noir will return to center stage, while Acqua di Parma will pay tribute to its long-standing expertise in fragrance extraction with the launch of Bergamotto La Spugnatura. Benefit will unveil a number of innovations, including the worldwide launch of They re Real! Magnet mascara. Fresh will reaffirm its expertise through an even more effective serum. Make Up For Ever will roll out original initiatives, in particular in foundation and the customer experience, both digital and in-store. Maison Francis Kurkdjian will continue to pursue the highly selective growth of its distribution. Perfumes Loewe will expand the distribution of its Home Scents, accompanied by a series of special events.

At a glance