Louis Vuitton 2011 Annual Report Download - page 41

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LVMH 2011
—
Perfumes & Cosmetics
39 / 68
AN EVER MORE VIBRANT HERITAGE OF EXCELLENCE;
MAJOR INNOVATION WHERE IT MATTERS
In a fiercely competitive global
market, the LVMH perfume and
cosmetics brands rely on a strong
culture of innovation and major
investment in media and communi-
cations. These e orts underscore the
brands’ values when it comes to cre-
ativity, modernity and quality, and
support not only the product ranges
and individual iconic products but
also innovation.
In 2011 the Group’s major French brands
successfully strengthened their image and
luxury status by focusing on their ever
more vibrant heritage of excellence.
Parfums Christian Dior, in close coopera-
tion with Couture – a source of inspiration
for its fragrance and make-up collections
– continues to capitalize on the excep-
tional aura that surrounds its timeless
classics, such as Miss Dior and J’adore,
which is still the market leader in France.
As for Guerlain, its legendary Shalimar has
returned to the limelight, while the new
fragrance from Parfums Givenchy has
been designed under the artistic direction
of Riccardo Tisci, designer of the Couture
collections.
The most recent brands to enter the
Group, either in fragrances or make-up,
have continued their expansion at a rapid
pace for most of them. This once again
demonstrates the appropriateness of the
brands’ positioning, as well as their
increasing attractiveness and effective
growth strategy.
The fi rst stone of a new research center
named Helios was laid in October 2011.
Research plays a critical role in the strategy
of Perfumes & Cosmetics, as innovation is a
key area of focus. More than 270 scientists,
researchers, chemists, biologists and doctors
work collectively in the laboratories of the
LVMH Research facility at the Parfums
Christian Dior site near Orléans, in the
heart of “Cosmetic Valley.” These teams
are responsible for developing our skincare
products, make-up and fragrances. In con-
junction with French and foreign partners,
they spearhead projects that will benefit
all of the business group’s brands. Many of
the products (such as Capture, Nude or
Prestige by Dior, and Orchidée Impériale by
Guerlain) that are hailed by the interna-
tional beauty press every year – and by the
brands’ customers – are the result of work
carried out at the LVMH Research facility.
Helios is an ultramodern building that
meets France’s High Environmental
Quality certification standards. It will be
home to the LVMH teams and a place
where researchers from around the globe
can gather and share ideas. This will
strengthen our teams’ effectiveness and
consolidate the international scope of our
innovations.
REVENUE
(EUR millions)
2011
2010
2009
3,195
3,076
2,741
PROFIT FROM
RECURRING OPERATIONS
(EUR millions)
2011
2010
2009
348
332
291
10% France
37% Europe
(excl. France)
9% United States
6% Japan
22% Asia (excl. Japan)
16% Other markets
REVENUE BY PRODUCT CATEGORY
(in %)
REVENUE BY GEOGRAPHIC
REGION OF DELIVERY (in %)
49% Perfumes
17% Skincare products
34% Cosmetics
OPERATING INVESTMENTS
(EUR millions)
2011
2010
2009
150
104
99