Cosmetics Important to Growth at LVMH: Halliday

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Oct. 16 (Bloomberg) -- Sandra Halliday, Editor-In-Chief at WGSN, talks with Francine Lacqua about how the European economy is impacting the luxury cosmetics business at LVMH and looks at what comes next for company. She speaks on Bloomberg Television’s “The Pulse.”

And it is doing very well.

We know the cosmetics business is affected by currency events.

In a lot of markets, they are still growing strongly.

What is very important is that their retail business, a large chunk of which is cosmetics, is the part of the business that is storming ahead.

There was a recent launch of the mark jacobs beauty brand.

It was launching it in conjunction with their retail.

That is quite key.

They have something like 20% of the beauty market in france.

When you have powerful brand names, there is so much you can do.

At a something a lot of their competitors have not got.

Will this be an engine of growth?

It is easier to provide cosmetics.

You do not have to think in size or trends.

You do, a little bit.

There is a lot more continuity with an ad campaign that can last several years.

Beauty has been an engine of growth for a lot of companies.

Burberry said the other day that there beauty business is doing well.

It is such a huge, expanding area.

There is so much more they can do.

It is not just about makeup.

There is a lot that they can do.

When you look at what they might think of in terms of acquisitions, there are companies out there that are huge in beauty and can bring a huge amount of revenue.

Would acquisition be the best strategy?

They have the small, beautiful brands which they could make a cosmetic section four.

-- for.

They have high-end brands.

Louis vuitton is one, obviously.

Mark jacobs have just started.

Acquisition is always important for lvmh.

Just about everything they have, they have acquired.

They build for the future and pick up on good brands at a very early stage and they build and build and build.

We know the share price is affected by the results, but this is a long-term strategy.

Is it a problem with lvmh?

We know that louis vuitton did less well than the fashion division as a whole.

Is it a marketing problem?

Is it something all companies are going through?

They are in the middle of a revamped strategy.

They are focusing on the leather and less on the logos.

This is quite important.

A lot of the emerging markets have been fond of those products over the years.

It is less about teh blingy element of the logo and more about quality.

It is not going to happen overnight.

Is there something they are doing wrong?

They are going to have a new creative director.

Is it about time?

Possibly yes.

Marc jacobs has been there a long time.

The core founder of louis vuitton is not about the fashion line.

It is about the core classic handbags.

I think marc jacobs was very widely stretched within his own business.

He is focusing more on his actual marc jacobs line.

It is difficult when you are producing so many collections.

I think it is an opportunity for them.

We have seen what a new designer did to galvanize them.

I think the potential is huge.

Thanks for coming on.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change