EX NIHILO PARIS’ Post

Let's talk about MONEY : we continue to reflect on the M&A deals this year in BEAUTY, WELLNESS & CONSCIOUS LIVING ... ⬇️ JUN - 23 Kering beauté acquires Creed the high-end luxury heritage fragrance house, paying $3.83 billion (€3.5 billion). The French luxury group made the acquisition very quickly after it flagged its intentions in February to create an in-house cosmetics business. The brand instantly provides Kering with scale and hype in the luxury fragrance category. The all-cash deal to acquire 100 percent of the fragrance house from funds controlled by BlackRock and by the company’s current chairman Javier Ferran closed in Oct 23 ⬇️ BEHIND THE DEAL ▫️the global luxury and prestige fragrance market is ~ €35bn, of which €5bn represents high-end luxury ⠀⠀⠀⠀⠀⠀⠀⠀⠀ ▫️ creed is estimated to have a ~10% global market share of this segment making it the largest independent global luxury fragrance player ⠀⠀⠀⠀⠀⠀⠀⠀⠀ ▫️ the segment is expected to continue to grow at a +15% CAGR (22-26) : strong tailwinds fueling double-digit growth, with consumers increasingly shifting from prestige to luxury ⠀⠀⠀⠀⠀⠀⠀⠀⠀ ▫️ this segment is underpenetrated relative to other discretionary luxury products and broader beauty ⠀⠀⠀⠀⠀⠀⠀⠀⠀ ▫️ high revenue recurrence from superior customer loyalty and low price sensitivity driving long-term resilience ⠀⠀⠀⠀⠀⠀⠀⠀⠀ ▫️ diversified distribution - 36 own stores, 1.4K points of sale - and tremendous opportunities in China and APAC, as well as travel retail and own-ecom where they currently under-index ⠀⠀⠀⠀⠀⠀⠀⠀⠀ ▫️ creed has high double-digit profitability ⠀⠀⠀⠀⠀⠀⠀⠀⠀ ▫️ the acquisition gives Kering vital in-house expertise in the fragrance category as it builds out its new beauty division #growthequity #entrepreneurship #growthcapital #consumerbrands #beauty #wellness #consciousliving #businessbuilding #socialcommerce

Spain's iconic Puig – the company behind Carolina Herrera, Paco Rabanne, Charlotte Tilbury, and more – went public on May 3rd. I had the privilege of discussing their IPO on the BBC News, and there's a lot to unpack about this luxury powerhouse 🇪🇸 Big Picture: Puig is entering a fiercely competitive market dominated by LVMH and Kering. It'll need serious investment 💰, savvy acquisitions, and a tech-driven mindset 🚀 to go head-to-head. Bullish Signs: Puig's seen impressive growth, especially in Asia-Pacific fueled by brands like Charlotte Tilbury Beauty. Skincare's another huge win ✨ The Future: To thrive, Puig needs three things: mastery of direct-to-consumer sales, data-driven decision-making 📈, and intelligent technology integration across its brand portfolio. L'Oréal excels at using tech to personalize the customer experience. If Puig wants to match that, scaling its innovation efforts will be crucial. But how does a smaller, niche-focused company keep up with the giants? I'm curious – what do YOU think is the key to sustained growth in the luxury market? Share your ideas in the comments! #IPO #Puig #Luxury #Beauty #Innovation #IMDImpact #FutureReady #Innovation Want more insights on future readiness? Our next indicator will launch on May 21st, ranking auto, consumer package goods, and finance industries. https://lnkd.in/e9aGvcff Stay tuned!

Even though it's been about six years since I left Puig, I still feel a strong sense of pride in its ongoing success. My twelve years there were crucial in shaping the professional I am today. The Spanish beauty giant soared to new heights in 2023, closing the year with record-breaking net revenues of 4,304 million euros, marking a remarkable 19% increase over 2022. This growth, which surpassed expectations set in 2021, demonstrates the company's unwavering commitment to excellence. Notably, net profit surged to 465 million euros, a 16% rise from the previous year. Key highlights include: 🌟 Puig's across-the-board growth in segments, with double-digit revenue increases, outpacing market averages. 💼 Rabanne crossing the 1 billion euros net revenue milestone for the first time, alongside the successful rebranding efforts and rapid growth of Jean Paul Gaultier. 💄 Strong makeup segment performance, led by Charlotte Tilbury's phenomenal success globally and the positive reception of Rabanne's makeup line. 💆♀️ Skincare emerging as Puig's fastest-growing segment, with a remarkable 31% revenue increase, driven by flagship products like Charlotte Tilbury's Magic Cream and strategic acquisitions like Dr. Barbara Sturm. #puig #beauty #market #luxury

The cosmetics group L’Occitane, is expanding its brand portfolio with the acquisition from Bluegem Capital Partners of the Italian home fragrance label, Dr. Vranjes Firenze. While the official amount remains undisclosed, industry sources estimate the transaction at €150 million   The company said in a statement that this acquisition contributes to the establishment of a high-end brand portfolio, maintaining a relevant and balanced geographical distribution - L’Occitane owned renowned brands such as L’Occitane en Provence, Sol de Janeiro and Elemis.   Dr. Vranjes Firenze in 2023  achieved a turnover of 43 million euros with EBITDA margins of 30%. Dr. Vranjes Firenze currently commands 13% of the 536 million euro high-end home diffuser market, second only to Dutch beauty brand Rituals. #LOccitane #DrVranjes #BeautyIndustry #BeautyBrandsPortfolio

I was born into a family dedicated to Perfumery and Puig was one of our great suppliers together with Mirurgia Gal, Federico Bonet, Álvarez Gómez ... and the great global brands Chanel Dior Elizabeth Arden L, Oreal etc. The founder D Antonio Puig was a good friend of my parents whom I was lucky enough to meet in one of their factories and ... on his farm At the end of Economics I had the option. To decide between working at Puig as a product manager or at Seat as an attached to the Logistics D Despite my choice for Seat I have always followed the Puig Group with enormous interest and lately I have dedicated time to analysing its brilliant trajectory and strategy as an ecosystem of brands focussed on the beauty business both in fashion and fragrances as well as in cosmetics and dermo Its evolution full of successes demonstrates an excellent saga of entrepreneurs now in its third generation I have analysed in detail the Brochure presented to the CNMV of the ipo and opv that they will carry out at the end of April for about 3000 million € Track Record of success, an Adequate Strategic Plan and an excellent equity story allow a fair valuation of the company that supposes a price and multiples that although demanding are very attractive for a company that has a gross margin of 74.4% and that multiplied by 2.2 times in 4 years its sales and its ebitda by 2.8 times 23vs 19 Puig has a Vision and values and a clear strategy. His core business is strongly consolidated and has unique capabilities: it will be a successful investment A pride for our economy to have a group like Puig that is an example of internationalised Spanish companies global leaders It will be a clear example for family groups that want to evolve by incorporating the culture of the requirement of listing in the markets as well as strict governance to make the aspirations of minority shareholders and customers their own

GLOBAL LUXURY REPORT 2023 !! Report highlights 🔦 🔹58 pages of market-leading research into the global luxury market  🔹Exclusive company case studies: Burberry, Kurt Geiger, The Edit LDN and Tmall  🔹Company profiles include: Estée Lauder, Rolex, FarFetch, LVMH, and Swatch Group 💡Who the largest 50 luxury brands are globally ? 💡Why luxury is increasingly attracting younger shoppers ? 💡The increasing role of social media in this sector. 💡Is sustainability driving customers’ luxury purchase choices? 💡Why Asia remains the focus of growth ? 💡Next steps and developments in global luxury Kusuma Pagadala , Ngoc Tran, Saleh ALhammad , Neeraj Malhotra ,,Sam Boboev , Victor Yaromin , Nadia Lambaraa, MBA , Nicolas Pinto , Messaouda M. , Carlos Gila , Arastu Agarwal , OMAR ALAMI , David Jimenez Maireles , Ozgul Erkis Gozum, Alastair Pike, David Bellanger , Marouane YACHAOUI , Samir Khabouze, Mona KASMI, Rachid Saihi , Ahmed chadi Tchiche , Sanjeev Kumar , Stuart Slater #Fintech #Ecommerce

Spanish beauty conglomerate Puig has acquired a majority stake in luxury skin-care brand Dr. Barbara Sturm. While terms of the deal were not disclosed, WWD previously reported that Dr. Barbara Sturm’s annual sales were around $77 million. #Puig has been one of the newer strategic acquirers in recent years, building up an arsenal of #beauty brands as it aims to compete with established players like L'Oréal Group and The Estée Lauder Companies Inc., plus emerging players like #KeringGroup. In this piece by Emma Sandler, we speak to Andrew Charbin of PricewaterhouseCoopers Corporate Finance LLC, and Sasha Radic of Jefferies.

This retail company can be a better investment than the "Magnificent 7". The retail industry is less trendy than others: Artificial Intelligence or IT. It's fiercely competitive and can be highly cyclical. Industry's key metrics are specific (SSS, L4L). It's rather boring compared to other options. However, there's one niche of retail I love – not as a consumer - but as an investor: 𝙏𝙝𝙚 𝙇𝙪𝙭𝙪𝙧𝙮 𝙍𝙚𝙩𝙖𝙞𝙡 𝙎𝙚𝙜𝙢𝙚𝙣𝙩. -- And among all the incredible companies in the industry, there's one that stands out by far: Louis Vuitton (LVMH) Why is this company/conglomerate so freaking good? 1) They've built an incredibly strong MOAT around the business. 2) The Management Board is world-class: Bernard Arnault's family. 3) They manage product supply like few can – only Hermès can compete. 4) Their sub-brands have the freedom to develop their own products and concepts. Uncommon but incredibly successful. Some of the companies that LVMH control: Christian Dior Couture Tiffanys TAG Heuer GIVENCHY SEPHORA Guerlain The Donna Karan Company, LLC. ... and many others (check the graph for more info) This niche is great because: 1) Luxury brands can control supply, thereby controlling sales. 2) Its clients are more resilient to economic crises. 3) Its clients are loyal to certain brands for life. -- The risks? I see two major risks: 1) Geographic concentration: much of the incredible growth of luxury brands has come from Chinese consumers. 2) Discretionary spending: although most clients of these brands are wealthy, there are many middle-class consumers who stretch their finances to buy luxury goods, and these individuals are not as financially resilient as the wealthier ones. -- Right now, and because Chinese and middle-class customers are not having the same economic stability than pre-pandemic, there's a slowdown in luxury consumption, and some companies that were once too expensive are now discounted, giving us the chance to analyze a potential entry. These include: LVMH - the inspiration for today's post. Moncler - a growing Italian brand getting traction in the industry. -- Is this a sector you're interested in investing in? In the graph, the brands that were acquired by LVMH in the last 30 years - mind blowing. Graph by: Quartr #investing #valueinvesting #luxurybrand

How does retail stay exciting? How do brands engage their audience? For trade magazine TextilWirtschaft’s Luxury Special Edition, Karin Leiberg, Director of Brand Activation & Strategy discusses the latest New Luxury Developments. From #neuroaesthetics, the #transformation economy and brand diversification to #hyperphysicality. Click through the slider and explore the best cases. You can read the whole article on the #TextilWirtschaft website or find the English translation via  the link in the comments 💻 #LIGANOVA #Textilwirtschaft #BrandActivation #BrandSpaces #ExperienceStrategy #BrandContent #Luxury

Lightning in a Bottle: Tapping Into the Niche Fragrance Boom. With independent perfume on a hot streak for investments and acquisitions, the #fragrance market is only growing larger — and more competitive. Brands like Le Labo Fragrances showed consumers were willing to spend upwards of $250 in exchange for more unique, daring perfumes that showcased craftsmanship and ingredients rather than celebrity spokespeople and established brand names. That, along with the Covid-19 pandemic that propelled consumers to invest in personal care products, paved the way for a larger, more lucrative fragrance market today — and far more competition. That means niche #brands need to fulfill a tall order to make themselves attractive to investors who can help them grow, namely a hero product, authentic storytelling and a foothold in growing markets like China. The cost of growth? Their niche credibility. Global presence is mandatory for brands to take the next step, with markets like Latin America, India and the US especially ripe for growth. Experts say investment in six or seven relevant geographies at once is necessarily for growth. But one market offers ample opportunity — and risk: China. In the moment they sell to a larger group, niche brands sacrifice the exclusivity that brought consumers to them in the first place. But with designer lines like Chanel’s Les Exclusifs and Dior’s La Collection Privée taking a more limited distribution strategy, and the likes of Byredo and Jo Malone available at airports around the world, the line between niche and mass is no longer so clear. But growth also needs to come at the right time. #fragranceindustry #globalbusiness #globaleconomy #fragrancelover #retailbusiness #acquisitions #luxuryfragrance