Another niche perfume brand bought up by a giant corporation

We have been reporting this snatching up of smaller niche fragrance brands for some time now because it shows just how powerful capitalism is and just how businesses need cash to flourish and expand. Or perhaps how the dream of founding a brand is to eventually sell it to a bigger stake? In any case, the latest news revolves around an interesting (and seemingly contradictory?) acquisition.

According to Fragrantica who reports based on the Business Wire reportage:

"Estee Lauder started to build a strong portfolio of prestige perfume brands with the aquisition of Tom Ford. Recently, Le Labo and Editions de Parfums Frédéric Malle have also come under EL control. Now, Kilian Hennessy -  the grandson of the founder of The LVMH Group - sold his brand to EL, although everyone was always hinting at the big support of LVMH behind By Kilian."



It's also reported on The Street Insider. (section Acquisitions/Mergers)

The Lauder Group portfolio currently includes: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, M·A·C, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, AERIN, Marni, Tory Burch, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, By Kilian.

My grumbling had began in 2013 when I lamented the "loss" to Big Market of L'Artisan Parfumeur and later Diptyque and Penhaligon's. And it was back then that I featured a true indie's views on how the market works and what lies in the future ahead. When Frederic Malle was bought by Lauder in 2015 the furore spread on online communities like wildfire. And Le Labo's acquisition too.

It's safe to assume that if your favorite fragrance niche brand is expanding, issuing more and more perfumes and accessory products (candles, linen sprays, hair scents etc.) it's bound to get sold very very soon! However if The Aesthetic Principle® should apply, fear not; you shouldn't feel guilty of fanning the fires of capitalism.

But let's revert to the case at hand. An originally LVMH company bought up by the Lauder Group. A company headed by someone related to LVMH bought up by the Lauder group. We live in interesting times!

Fresh Re-Enters the French Market

It's no secret that the American line Fresh, founded by Lev Glazman and Alina Roytberg in Boston in 1991, who are famous for their apothecary aesthetic, innovative at time of launch, and their simple but not simplistic concept, have been bought by LVMH since 2000. (Is there any brand who has escaped their acquisitions I wonder)

the London Fresh boutique

With that fact in mind LVMH decided to open a dedicated counter of Fresh at the beauty space of Galleries Lafayette Haussman, the biggest Parisian department store, after years of absence from the French market.With 23 boutiques globally and counting Fresh is growing strong. Will the brand become the next Acqua di Parma?

LVMH and Hermes Smoke the Peace Pipe

The behemoth and the (seemingly) last bastion of artisan pride in luxury have shaken hands. For now at least. In short LVMH, the giant of luxury fragrances, fashion, accessories and wines & spirits (see below) and Hermes, the historic saddle-maker turned luxe brand, have come to a reconciliation. The official press release runs thus:

"The President of the Commercial Court of Paris, Mr. Franck Gentin, proposed to LVMH and Hermès a conciliation in order to bring to an end the conflicts between the two groups and restore a climate of positive relations between them.

The two parties having reacted favorably to this proposal, signed an agreement under which the LVMH Group will distribute all its Hermès shares to its shareholders, on the understanding that LVMH’s largest shareholder, Christian Dior will in turn distribute the Hermès shares it receives to its own shareholders. LVMH, Dior and Groupe Arnault have undertaken not to acquire any shares in Hermès for the next five years. The distribution of Hermès shares, approved by the boards of LVMH and Dior, will be completed no later than 20th December 2014. Following this distribution, Groupe Arnault will hold around 8.5% of the capital of Hermès International.

By virtue of the agreement reached today, LVMH and Hermès have brought to an end the conflict, and all related actions, between them.

Mr. Axel Dumas and Mr. Bernard Arnault both express their satisfaction that relations between the two groups, representatives of France’s savoir-faire, have now been restored."

LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Hennessy, Glenmorangie, Ardbeg, Wen Jun, Belvedere, 10 Cane, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton et Numanthia. Its Fashion and Leather Goods division includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti, Nicholas Kirkwood and Loro Piana. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, la Samaritaine and Royal Van Lent. LVMH's Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Ltd, a joint venture created with the world’s leading diamond group.

Dior & LVMH: What the Hell?

I was sort of ruminating the other day about Dior using Marilyn Monroe, Grace Kelly and Marlene Dietrich for the new film commercial for their J'Adore fragrance. Apparently something is very rotten at LVMH who owns the brand and things are taking an awry turn in general.

A while ago it was publicized that they had taken an old, iconic photo of French heartthrob and (mesmerizing eyed) actor Alain Delon in all its beauty, had digitally erased the dangling cigarette from his manly fingers in the original shoot (which you can see on our post here) to conform with political correctness and had then used the photo to promote their classic ~ruggedly masculine, yet elegant~ scent Eau Sauvage. It worked brilliantly sales-wise. I assume that there was some private deal behind the scenes between the actor and the group, or at least the person who held the rights for the photograph, but this time they're going too far. Because who owns the rights for an icon like Monroe or Dietrich?
So, in light of the latest, I am reminding you there is not only one, but two commercials for Eau Sauvage which use whole excerpts from the classic 1960s film La Piscine by Jacques Deray, in which Alain Delon struts his suave physique and virile attitude to great aplomb. Obviously they must have had permission from the producers, but I find the whole experiment rather crass and pathetic. I realize men of Delon's ilk are rare and icons such as Monroe, Kelly, Dietrich or indeed John Lennon (earning Yoko Ono a huge amount of money each year) are timeless, but surely they could have been at least rather more imaginative in their take chez LVMH, just like they could have been more imaginative while promoting their J'Adore. I'm not sure I' comfortable with where Dior is going nowadays...

Is this the end of Ebay perfume sales?

"On Monday, June 30, eBay was ordered to pay a record fine. The on-line auction site will have to pay almost €40 million ($60 million) in damages to 6 brands in the LVMH luxury group – Louis Vuitton, Christian Dior Couture – and 4 fragrance brands: Christian Dior, Kenzo, Givenchy and Guerlain, for violating their excusive distribution network".

You can read the rest of the ominous Osmoz article as well as the concerned testimonies of perfumephiles using Ebay on Perfume of Life forum by clicking the links.
So not good!