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DCF and vIndustry oaluation pverview arameters PPage 75age 75 I Points of view from EY global sector The beauty market: where to invest? and other industry professionals Another factor they can leverage is to sell products in Here is a short list of the small beauty pearls that the As the large beauty companies are mostly focused on shops that are “men friendly,” rather than just in large beamtq companies hane acimired oner the last acimiring and deneloping brands, theq are staqing traditional perfumeries, supermarkets and few years: away from other parts of the industry, i.e., services, department stores. And of course, using the internet • Est†e Damder recentlq acimired senen beamtq retail and smbcontractors, ohich leanes significant as a marketing and commercial vehicle to reach men pearls: Le Labo, Rodin Olio Lusso, Editions de space for other players, such as investment funds, consumers will also make a major difference. Parfum Frédéric Malle, Glamglow, Dr. Jart, Do The retailers and start-ups, to get in the game. Right Thing, and Have & Be Co. The beauty market is attractive, growing and Investment opportunities • D’Gr†al acimired eight beamtq pearls2 Essie, multifaceted, and any player with a precise business w The large beauty companies are aggressively Clarisonic, Urban Decay, Décleor, Carita, NYX idea and outstanding execution can succeed and ervie pursuing investment opportunities through a massive Cosmetics, Niely, and Carol’s Daughter. achieve considerable returns. v acimisition campaign. Eost of them are focmsed on • Mnilener acimired fine beamtq pearls in the scin care try o the “small beauty pearls,” which are brands that have category: Ioma, Ren Skincare, Kate Somerville, Indus something special in their DNA, their business model Dermologica and Murad. and'or their marceting model. Darge beamtq • Hmig acimired too pearls in the fragrances companies acimire these pearls at a significant category: Penhaligon’s and L’Artisan Parfumeur. multiple of their EBITDA, yet they have a business • ;otq acimired a paccage of ,+ brands from H? plan that leverages their large R&D, marketing and and the portfolio of the Brazilian company commercial organizations to achieve spectacular Hypermarcas, among which several beauty pearls growth. are included. The luxury and cosmetics financial factbook 2016

Luxury and Cosmetic Financial Factbook - Page 77 Luxury and Cosmetic Financial Factbook Page 76 Page 78