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Tag: L’occitane

  • L’Occitane to expand to China’s lower-tier cities

    L’Occitane to expand to China’s lower-tier cities

    French skincare brand L’Occitane has revealed its plans to expand into China’s lower-tier cities through e-commerce, in particular Tmall, an online platform for branded goods operated by Alibaba Group Holding.

    The company revealed that it has a marketing partnership with the online platform to meet China’s emerging middle class, who are creating growing demand for imported premium products.

    According to Andre Hoffmann, L’Occitane’s vice chairman and managing director of Asia-Pacific, opening new physical stores in China’s second and third-tier cities would help create brand awareness.

    The group reported that mainland China was its largest source of growth last year, with sales in the country growing 16.8 percent, contributing nearly 30 percent to the company’s overall growth. The company saw an 8.9 percent rise in sales to USD1.45 billon over the 12 months ending in March.

    Meanwhile, L’Occitane held off on plans to expand in Hong Kong and Macau due to the declining numbers of Chinese tourists visiting the two regions. The company revealed that it will be shutting down a store in Hong Kong in September, following a recent closure of one of its shops in Macau.

    “Now [that] mainland tourist numbers are shrinking, maybe we don’t need so many stores to do the same level of business,” said Hoffman in a Nikkei report.

    L’Occitane is planning to continue adding to its 187 stores in 65 cities across mainland China. Some 50 stores, which are set to open globally later this year, will be in mainland China, Japan and South Korea.

    While Hoffman noted that all stores in Hong Kong have been “profitable,” he admitted that the retail market has been “very challenging in the past 18 months.”

    The vice-chairman revealed that its current strategy is to focus more on local costumers, adding, “The mainland tourists are just like the cherry on top of the ice-cream sundae.”

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  • L’Occitane sales on the up despite disappointing performance in Hong Kong

    L’Occitane sales on the up despite disappointing performance in Hong Kong

    French beauty brand L’Occitane has announced sales for the year ending March 31 increased by 8.9 percent at 1.28 billion euros.

    Growth surged on in China – which saw sales grow by 16.8 percent – France, Japan, Brazil and Russia however a poor performance in Hong Kong saw total retail sales in Hong Kong and Macau fall by 15.2 percent. The disappointing results were attributed to a fall in mainland Chinese tourists visiting the region, which also affected Hong Kong’s travel retail sector.

    L’Occitane has a strong presence in Hong Kong with 36 stores in the region.

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  • L’Occitane China sales rise, the other drop by 14.5pc

    L’Occitane China sales rise, the other drop by 14.5pc

    Cosmetics and skincare products company L’Occitane International reported China was the main driver of sales in the nine months ended December 31. But Hong Kong and Macau retail sales dropped by 14.5 percent.

    Hong Kong travel retail business also suffered from the lower traffic in the Greater China region. In local currency terms, sales in China recorded the highest growth of 19.1 percent, the company announced.

    Overall net sales in China amounted to 94.8 million euros in the nine months. China remained the fastest growing country and the primary contributor to overall growth, followed by France, Brazil, Russia and Japan, the company reported. Overall group net sales were up by 11.6 percent to 984.7 million euros for the nine months of the financial year 2016. At constant exchange rates, the growth was 5.8 percent, L’Occitane said.

    China, France, Brazil, Russia and Japan were among the countries with highest sales growth in local currencies. Overall same store sales growth was 1.8 percent. Sales through the group’s e-commerce channels grew by 17.7 percent at constant exchange rates.

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  • L’Occitane China sales soar

    L’Occitane China sales soar

    L’Occitane Hong Kong and Macau sales are still falling, but in the mainland they soared 20.4 per cent in the last six months.

    Unveiling its results for the half year to September 30, L’Occitane said worldwide sales rose 12.5 per cent to US$546.7 million. In local currency, sales rose 5.8 per cent.

    But in Hong Kong, the retail operation remained impacted by the weak market sentiment and a drop in Mainland Chinese tourists.

    “During the second quarter, Hong Kong travel retail sell-through was sluggish due to the lagging effects of Mers in Korea and a drastic drop in traffic in Hong Kong and Macau,” the company said in its filing.

    China was the fastest growing country with 20.4 per cent growth in local currency, mainly contributed by new stores opened last year and in the first half of this year. Sales via T-mall also contributed to the sell-out growth in China.

    Japan, its third fastest growing market behind France,  posted a sales growth of 8.2 per cent at constant exchange rates with same store sales growth at 6.9 per cent.

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  • China leads L’Occitane progress

    China leads L’Occitane progress

    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.

    “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.”

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