PARIS – Puig’s earnings and gross sales had been down in 2020 as a result of coronavirus pandemic, however the Spanish family-owned magnificence and style firm expects its enterprise to amp up, and goals for gross sales to double in three years and triple in 5 years.
It was the primary time in current historical past that Puig closed a yr with a loss. On account of lockdowns and social distancing, consumption of perfume, make-up and style was drastically diminished, and brick-and-mortar retailers shuttered.
“January and February had been file months for us, after which hastily – increase,” Marc Puig, the corporate’s chairman and chief government officer, advised WWD.
Within the 12 months ended Dec. 31, 2020, the Barcelona-based group posted a internet lack of 70 million euros, versus a acquire of 226 million euros in 2019. Revenue earlier than tax got here in at minus 72 million euros, in opposition to a rise of 304 million euros within the prior yr.
Puig’s internet gross sales totaled 1.54 billion euros, a 24 p.c decline in reported phrases, partially offset by Charlotte Tilbury, the digitally native British color-cosmetics enterprise included in June 2020. On an natural foundation, Puig’s gross sales sank 32 p.c.
In early December 2020, the corporate had forecast its gross sales for the yr would attain 1.5 billion euros.
Marc Puig highlighted a few of the group’s accomplishments final yr, together with having debuted Dries Van Noten shops exterior of Europe, within the U.S. and China. Penhaligon’s, L’Artisan Parfumer and Paco Rabanne shops had been additionally opened.
“We’ve elevated our digital penetration, in each style and perfume, dramatically,” he mentioned.
On-line perfume gross sales on the group, which sells its merchandise in 150 international locations and runs 26 subsidiaries, generated 28 p.c of complete revenues in 2020.
By area, Puig’s gross sales within the Europe, Center East and Africa area – Puig’s largest – declined 19 p.c to 723 million euros, whereas gross sales had been down 40 p.c in Latin America, 14 p.c in North America, 32 p.c in Spain and 16 p.c in Asia.
Marc Puig acknowledged the corporate nonetheless has nice alternatives to broaden its digital attain and exercise in Asia, which accounted for simply 8.7 p.c of enterprise. They’re the 2 foremost enterprise drivers trying forward, and the place the group has simply scratched the floor.
“There are two massive modifications within the trade that we’ve got not been in a position to seize with our portfolio: the smartphone revolution and China,” he mentioned, explaining the corporate’s portfolio has traditionally been closely skewed towards perfume, which is invisible, thus not seen within the ubiquitous on-line selfie tradition, and has grown much less rapidly than the skin-care and make-up classes.
China, because the Cultural Revolution, has not been a robust perfume market, though that’s been altering lately.
To take higher benefit of the rise of digital and China, the place the center class is swiftly rising, Puig has made quite a few strikes, together with taking the bulk stake in Charlotte Tilbury and incorporating two dermocosmetics manufacturers, Uriage and Apivita. (Skincare just isn’t solely photogenic, but in addition the prime magnificence product class in Asia.)
“With the brand new portfolio, we expect we’re rather more ready to recuperate what we’ve got misplaced and to reap the benefits of the traits that we see within the trade,” mentioned Puig.
To accommodate these shifts, since Jan. 1, the corporate Puig has been restructured into three divisions. The transfer was made, as properly, to assist put together the group for its future switch to the fourth technology of Puig relations.
Immediately, the Magnificence and Trend Division, headed by José Manuel Albesa, is comprised of Paco Rabanne, Carolina Herrera, Jean Paul Gaultier, Nina Ricci, Dries Van Noten, Penhaligon’s and L’Artisan Parfumeur; the Christian Louboutin and Comme des Garçons Parfums’ magnificence product licenses, and the life-style manufacturers Adolfo Dominguez, Antonio Banderas, Shakira and Benetton.
This department’s fragrances have made Puig the world’s fifth largest selective fragrance maker, with nearly 10 p.c market share. Three of the corporate’s manufacturers determine within the high 20 – Paco Rabanne, Carolina Herrera and Jean Paul Gaultier.
Charlotte Tilbury makes up one other division and is run by Tilbury herself with Demetra Pinsent serving as CEO.
The Derma Division consists of Uriage and Apivita – that at the moment are wholly owned by Puig and steered by Hervé Lesieur – and the corporate’s 50 p.c stake in Isdin. (The latter’s gross sales aren’t consolidated into Puig’s complete revenues.) These three manufacturers collectively make Puig Europe’s third largest dermocosmetics maker, after Pierre Fabre and L’Oréal.
Mechanisms are in place for the divisions to share greatest practices and coordinate with one another.
All of that is meant to contribute to Puig’s goal of surpassing 3 billion euros in gross sales in 2023 and reaching 4.5 billion euros in 2025.
The group’s companies on-line and in Asia are anticipated to generate 30 p.c and 25 p.c of the corporate’s general exercise, respectively, in 2025.
Concurrently, the corporate retains honing in on social- and sustainability-minded actions.
Over the course of the COVID-19 pandemic, Puig tailored a few of its manufacturing traces to provide greater than 1.2 million items of 500-ml. hydroalcoholic gels, whereas half-a-million items had been donated by way of the Puig Basis. The group’s style workshops had been additionally modified to provide private protecting tools.
In 2020, Puig wound down its first sustainability program that was launched in 2014. The group achieved its objectives, which included attaining zero waste to landfill, carbon-neutral manufacturing and wholly renewable electrical energy within the amenities that it manages.
Puig acquired a B grade from the Carbon Disclosure Undertaking, and the corporate dedicated to adhering to the worldwide Science Primarily based Targets initiative because the group gears up for the subsequent part of its sustainability program.
“We don’t wish to cross an excellent enterprise that damages the world, as a result of in any other case our youngsters will not be eager about being a part of this venture,” mentioned Puig. “We wish to be the chief within the pack in something that has to do with sustainability. We’ve made a variety of progress, however it’s not ok. So we’ve got raised the ambition.”
On the social entrance, with Ashoka, a nonprofit group, Puig final yr initiated its sixth version of its Invisible Magnificence Program that helps entrepreneurs with concepts to higher their communities and includes firm workers for mentoring and coaching.
The confluence of things makes Marc Puig extremely optimistic for a return to the “Roaring Twenties.”
“Even when we’ve seen some [lockdowns] that we weren’t anticipating, our state of affairs could be very optimistic for the second half – and the years to come back,” he mentioned.
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