Clarins sees a slowdown in the cosmetics market in Europe for the summer and feared a worsening situation in the second half, but put on the powerful relay Asia and South America to support its growth.
The group, one of the pioneers of cosmetics herbal, was delisted in June 2008, just before the worsening financial crisis.Courtin-Clarins family, tired of criticism from analysts and the yo-yo's share price related to speculation about the capital, had bought out the minority at the expense of a very high debt.
Since then, Clarins has suffered the crisis of 2009 had the rebound in 2010 and is organized to accelerate its international development.
Today, while Western Europe still accounts for half of its sales and the specter of recession beating down markets, Clarins shows his concern.
"The trend slowed for us in Europe since June (…) I am worried about market developments in the second half but for 2012," said Philip Shearer, Group Chief Executive, in a interview with Reuters.
"Some of our clients (perfumery chains) are in debt, the prospects for employment are poor and credit will become scarce," he added.
The growth of the brand in Europe has reached over 10% in the first eight months of 2011 with its product launches, in the luxury cosmetics market up 3% to 4%. Its total turnover was up 10% over the period.
Sales of Clarins currently around 1.2 billion euros, against 1.0 billion in 2008.
L'Oreal, the world leader in the industry, has meanwhile seen sales of its luxury division to increase by 6.9% in the first half of 2011.Those of the American Estée Lauder grew by 13% during the year ended in late June.
35% GROWTH IN CHINA
The red and white claim first place in the market skin care in Europe and fourth worldwide, behind the leading trio formed by Clinique (Estée Lauder), Lancôme (L'Oréal) and brand Estée Lauder.
But the real growth, as with all industry players from Asia, including China – that still only 3.5% of sales for the group but when they go up by 35% – and the flow of Asian tourists in the world.
Brazil and its affluent traveler and is also a source of strong growth for Clarins.
Being a private group does not stop to consider possible acquisitions that would accelerate the pace in new regions of the world or providing new channels of distribution.
"If I have the right target, I will find the money without any problems," says Philip Shearer, despite the financial crisis and the difficulties of access to credit that it can cause.
He said he spotted "a couple of interesting brands", without giving further details, but added that "nothing concrete in the pipes for the moment."
Heavily in debt after the purchase of its minority – for whom the family holding company had borrowed 800 million euros – Clarins claims to have paid "a very large part" of its debt.The company is particularly out of L'Occitane in the public offerings of that in Hong Kong in May 2010.
ADVERTISING BUDGETS UP
With the boom in anti-aging products in mature markets and the Asian appetite for creams, the group aims to make a global brand Clarins, targeting its development in the United States and Asia.
Across the Atlantic, he made a major restructuring of its distribution network, leaving some channels such as Macy's or Dillard to reposition themselves at Nordstrom or Bloomingdale's, where he has opened treatment rooms to its brand.
In Asia, it has revived this year to great fanfare a slimming cream for the face of women in the region, many are finding their face too round.
It is also embarking on high-end brand with My Blend only available in the spa luxury of the Hotel Royal Monceau in Paris.
In 2011, Clarins should allocate $ 123 million (90.3 million) in its advertising expenditure, against $ 96 million (70.4 million) in 2010.
For 2012, the group plans to increase its advertising budget in Asia and the United States, perhaps not in Europe.
Created in 1954 by Jacques Courtin-Clarins, Clarins has quickly made famous in the 1960s with essential oils of plants.
The group then diversified into the perfume in the early 1990s, with the license of Thierry Mugler – his "Angel" remains in the top three most juices sold in France – Azzaro, Porsche Design, David Yurman and Swarovski .
The global market for cosmetics, hygiene products out, is valued at approximately $ 140 billion. The luxury goods accounts for about one quarter of that total.