OWNERS OF THE LUXURY PERFUME INDUSTRY

According to Coresight Research, most scents are produced under license by large,
multinational beauty conglomerates such as Shiseido, Estée Lauder, L’Oréal, Revlon,
Coty and Interparfums. A few luxury goods companies, including Hermès and Balmain,
produce fragrances in-house.

Branded and celebrity fragrances under license are developed by perfumers at the main
global fragrance and flavor ingredient companies. And, smaller privately held and
independent companies produce more artisanal, niche fragrances that typically take
longer to develop. The fragrance manufacturer market is becoming more consolidated
over time as the large conglomerates acquire smaller niche and more artisanal brands.

Many luxury brands have expanded into fragrances as entry points for customers.
Fragrances are often more affordable than luxury goods such as bags or shoes, allowing
these brands to tap into middle- and lower-income consumer segments.

Consumer Trends
The traditional mass-market fragrance business is struggling as consumers seek
fragrance brands that are more upmarket, and prestige retailers are enjoying a
renaissance in fragrance.

Chanel Distribution
In the US and the UK, fragrances are sold through a variety of channels that offer a
plethora of products. Many celebrities, cosmetics brands and apparel brands have
developed their own fragrances, and perfumes can be purchased across store and
online formats.

The department stores have traditionally been the main fragrance retail channel. Now,
many companies have offered exclusive product launches. For example, demand for air
travel, travel retail has emerged as a strong distribution channel for luxury fragrances
in the last few years. As for US mass merchants such as Walmart and Target carry lower-
priced mass-market and celebrity fragrances.

The conglomerates focus their distribution in three principal channels: direct sales,
department stores, retail travel. As well as their own stores or specialized chains and
franchises.

CHANEL DISTRIBUTION
Direct Sales
Department stores
Conglomerates of luxury
Retail travel Consumer
parfums
Own stores
Specialized chains
 Franchises
Fashion house
Fuente: Equipo investigador datos Coresight Research

Statistics
The luxury category includes brands that design, craft, and market high-end clothing,
leather goods, fragrances, accessories and watches. The leader in sales is LVMH.
Global Powers of Luxury Goods (millions of dollars) - 2016
R. 2016 Founded Countr Company Luxury Perfume brands FY2016
y
1 1987 Francia LVMH Moët Louis Vuitton, Bulgari, 41593
Hennessy - Louis Christian Dior, Acqua di
Vuitton SE Parma, Loewe
2 1946 EE. UU The Estée Estée Lauder, Aramis, Jo 11824
Lauder Malone, Le Labo,
Companies Inc. Frédéric Malle
6 1909 Francia L´Oréal Luxe Lancome, Helena 8476
Rubinstein, Giorgio
Armani
8 1968 EE. UU Ralph Lauren Ralph Lauren, Purple 6653
Corporation Label
11 1909 Francia Chanel SA Chanel N° 5, Coco 6570
Chanel
12 1837 Francia Hermés Hermés 5755
International
SCA
17 1872 Japón Shiseido Shiseido, IPSA 3736
Prestige &
Fragrance
25 1904 EE. UU Coty Luxury JOOP!, Calvin Klein 2567
fragrance, Hugo Boss,
Gucci, Burberry, Chloé,
Tiffany, Bottega Veneta,
Marc Jacobs, Miu Miu,
Alexander McQueen,
Bruno Banani,
Balenciaga, Davidoff
27 1914 España Puig SL Carolina Herrera, Nina 1980
Ricci, Paco Rabanne,
Jean Paul Gaultier,
Penhaligon´s,
Fuente: Equipo investigador, datos de Deloitte.