China leads L’Occitane progress
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Hong Kong-listed L’Occitane says international gross sales elevated 11.7 per cent final monetary yr – largely pushed by Hong Kong and China.
The skincare and cosmetics model achieved gross sales progress in each market in Asia and past.
In Hong Kong, the place the corporate expanded its retailer community from 32 to 36, the corporate posted gross sales of euro 23.5 million, up 21.2 per cent in native foreign money.
In China, the place it expanded its community by 25 to 161, its gross sales reached euro 23.1 million, up 28.9 per cent.
Complete international gross sales topped euro 1.178 billion with similar retailer gross sales up 5.7 per cent. China and Hong Kong have been the quickest rising markets at fixed change charges as properly. Internet revenue rose 35.7 per cent to euro 125.6 million.
The corporate attributed the constructive outcomes to cautious manufacturers positioning, pricing, on-line actions and beneficial trade charges.
“The continued investments in product innovation, merchandising, digital and CRM initiatives, advertising in addition to gross sales distribution channels enabled the group to cater the rising demand for our top quality merchandise,” stated the corporate in its earnings assertion.
“The administration has adopted a selective multi-channel strategy to spice up gross sales and expects investments within the digital and journey retail channels as key drivers of future progress. The continual upgrading and increasing of our retail community, selectively and punctiliously, by means of retailer renovations and relocations has began to bear fruits. All key markets delivered progress in native foreign money.”
L’Occitane’s internet gross sales in Japan rose by six per cent, or by eight.eight per cent on fixed change price foundation, contributing 14.four per cent to general progress. The corporate stated Japan’s enchancment was the results of profitable product launches, new retailer openings and renovations, elevated media and advertising investments and an general improve in vacationer purchases.
“In China, the place it expanded its community by 25 to 161, its gross sales reached euro 23.1 million, up 28.9 per cent.”
“The turnaround in Japan market mirrored administration’s endeavor in executing a constant technique up to now few years and to reinforce the model’s premium positioning in Japan which is the most important market of the group. The robust progress of Melvita in Japan additionally presents an ideal alternative to additional construct this rising model and unlock its full potential.”
Taiwan’s internet gross sales rose 7.three per cent, or by2.6 per cent on fixed trade charges.
The wholesome similar retailer gross sales progress was attributable to profitable new product launches, and an enchancment within the retail retailer community, the corporate stated. Non-comparable shops, nevertheless, recorded a drop of 6.2 per cent, primarily because of the disposal of the Melvita enterprise to an area distributor in 2014.
Plan to strengthen different manufacturers
L’Occitane stated that with its ongoing dedication to a multi-brand technique, the group will particularly strengthen model recognition within the yr forward for its rising manufacturers like Melvita, L’Occitane Au Brésil and Erborian via efficient advertising campaigns.
“The group will proceed to revamp its Melvita model and to introduce its Erborian model to extra markets, in flip additional develop its model portfolio.”
The group additionally plans to implement a brand new advertising program to reinforce the L’Occitane model consciousness in international markets. It says it is going to undertake measures specializing in digital advertising, advertising communication, product sampling in addition to the opening of interesting flagships with optimised footfall and gross sales conversion. Extra particulars and progress shall be reported regularly.
“The group will proceed to protect and improve the id of its star model L’Occitane en Provence in addition to different rising manufacturers via a number of channels. In addition to its instantly owned, renovated retail outlets, the group is specializing in retailing its pure ingredient based mostly well-being merchandise via journey retail, on-line market, in addition to environment friendly wholesale channels.
“The booming development of journey retail all over the world and ever-growing eCommerce market in China permits us alternative for market outreach. The group will undertake efficient advertising approaches, on-line and offline, in an effort to additional raise up its model profile and to cater the rising demand in these platforms.”
Questions & Answers
Q.What contributed most to L'Occitane's significant sales increase in the last financial year?
What contributed most to L'Occitane's significant sales increase in the last financial year?
The company's international gross sales rose significantly, largely driven by strong performance in Hong Kong and China. Both markets experienced substantial sales growth, with China seeing a 28.9 per cent increase and Hong Kong a 21.2 per cent rise.
Q.How did L'Occitane achieve the positive financial results reported?
How did L'Occitane achieve the positive financial results reported?
L'Occitane attributed its positive results to careful brand positioning, strategic pricing, online activities, and beneficial exchange rates. The company also mentioned continued investments in product innovation, digital initiatives, and expanding sales distribution channels.
Q.What strategy is L'Occitane employing to boost future sales and growth?
What strategy is L'Occitane employing to boost future sales and growth?
The company is adopting a selective multi-channel approach, focusing on digital and travel retail channels as key drivers. It also plans to upgrade and expand its retail network selectively, through store renovations and relocations.
Q.What are L'Occitane's plans for its other brands and its main brand awareness?
What are L'Occitane's plans for its other brands and its main brand awareness?
L'Occitane plans to strengthen recognition for growing brands like Melvita, L'Occitane Au Brésil, and Erborian through effective marketing. It will also implement a new marketing program, including digital marketing and flagships, to enhance L'Occitane brand awareness globally.