Louis Vuitton 2004 Annual Report Download - page 46

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44
In a fiercely competitive global environment, the major
perfume and cosmetics brands of LVMH benefited from
their image of excellence and reaped the benefits of their
policy of innovation and their support of their great classic
products. Investments in image and retailing intensified their
momentum in all product categories. Taking advantage of
their remarkable creativity in make-up, the brands turned in
strong performances in this segment, and achieved extremely
successful perfume launches. In the skincare segment, signi-
ficant advances were also achieved. After Parfums Dior's
Capture R60/80 which was recognized with an Award for
Excellence in Beauty Products, the new Successlaser line from
Guerlain in 2004 and the Capture Sculpt 10 line from Parfums
Dior launched in January 2005 are two examples of our
research teams’ expertise and capacity for innovation.
In 2004, the business group posted organic sales growth
of 4% and its operating margin increased for the third
consecutive year. The best performances were recorded in
Europe and Asia. In the United States, the French brands
have made significant efforts to reposition their distribution
to more high-end points of sale. This strategic redeploy-
ment, which negatively impacted sales over the short term,
will establish more solid bases for the future growth of our
brands in the American market.
The year 2005, a key year for innovations, will allow us to
continue to strengthen our brands in key countries and to
accelerate growth in new, high-potential markets.
PARFUMS CHRISTIAN DIOR
Parfums Christian Dior had an excellent year, characterized by
growth in consumer sales equal to almost twice market growth,
and again improved its income from operations. Its perfor-
mance was particularly remarkable in Europe and Asia. In
Japan, where its growth is the strongest among Western brands,
the brand continued to gain market share. Parfums Christian
Dior consolidated its leadership in France and made substan-
tial gains in the Central Europe.
In the United States, the past year was dedicated to a strategic
repositioning in synergy with Dior Couture that concentrated
distribution in the most up-market points of sale to enhance
the quality, creativity and main classics of the Dior brand. This
very selective redeployment, which negatively impacted sales
in the short term, is aiming at a leadership role in the long
term on this market. It establishes healthy and solid bases for
this objective of Parfums Christian Dior in the United States.
Success of the strategic lines and innovations
Investments made in the portfolio's leading product lines gene-
rated excellent results: Poison in perfumes and Dior Addict, a
perfume and make-up line, recorded impressive growth. The
J’Adore perfume confirmed its status as a world classic.
Creativity, a key value of Parfums Christian Dior, strongly contri-
buted to its success: the new product launches turned in remar-
kable performances. The Pure Poison perfume, launched in
the fall, was one of the international success stories of 2004 and
generated new momentum for the entire Poison line. Both the
Driven by their exceptional creativity,
our perfume and cosmetics brands recor-
ded major successes in all product
categories and intensified their interna-
tional growth.
Perfumes & Cosmetics