China, Hong Kong and Malaysia shine for L’Occitane as net sales soar by 8.7%

By Amanda Lim contact

- Last updated on GMT

L’Occitane saw net sales grow 8.7% to €1.4bn ($1.6bn) for the last financial year, with the rise in China outstripping the global growth rate. ©L'Occitane Group
L’Occitane saw net sales grow 8.7% to €1.4bn ($1.6bn) for the last financial year, with the rise in China outstripping the global growth rate. ©L'Occitane Group
Cosmetics manufacturer and retailer L’Occitane saw net sales grow 8.7% to €1.4bn ($1.6bn) for the last financial year, with the rise in China outstripping the global growth rate.

On a like-for-like basis, the Group's sales grew by 4.2%, an improvement from 3.7% last year. Overall same-store sales growth remained healthy at 1.8%.

This excludes its acquisition of LimeLife, which became a subsidiary of the group in January 2018, as well as Le Couvent des Minimes, which was sold off in 2017.

Chairman and CEO of L’Occitane, Reinold Geiger said: “We continued our solid growth momentum through to the end of FY2019, a year that brought many highlights. This included the launch of highly popular products, particularly the Immortelle Reset serum, as well as the successful acquisition of ELEMIS.”

He highlighted that the firm’s refocused strategy helped its flagship brand, L’OCCITANE en Provence to grow at an accelerated pace compared to the previous year.

APAC growth on the rise

Sales momentum in China remained strong, growing at the rate of 12.1%.

The company attributed the steady growth to its successful campaigns during the Chinese New Year and Women’s Day gifting seasons.

Sales in Hong Kong and Japan, two important markets for the company, grew 8.6% and 0.1% respectively.

Japan still remains the largest market for the L’Occitane en Provence and that the group remains optimistic about its future.

In the coming year, the firm plans to continue to rejuvenate its brand and connect with customers through new store openings, and marketing activities such as pop-up stores and outdoor events.

Another market in APAC that did especially well was Malaysia.

Although a small market for the company it grew 33% thanks to the launch of L’Occitane en Provence’s hero face care product, Immortelle Reset serum.

However, the sluggish Taiwanese market suffered a dip, with sales declining 2.7%, which L’Occitane said was aggravated by the number of typhoons that hit the island during the year.

The company saw plenty of potential for its e-commerce channels, which achieved double-digit growth in the year.

US sales going strong

According to the company, its sales were strongest in the US.

Local currency sales in the U.S. grew by 31.8%, which was mainly driven by LimeLife, which became a part of L’Occitane in January 2018.

In Europe, Russia saw accelerated growth following promotional campaigns and the further development of wholesale chains.

Additionally, Erborian continued to perform strongly in Russia, making it the brand’s second largest market after France.

“Looking forward, uncertainties are still present in some markets, such as the UK. However, there are still tremendous opportunities in other regions, such as Asia-Pacific where we will soon launch ELEMIS,” ​said Geiger.

“We also look forward to announcing more exciting product launches in the coming financial year that will further solidify our presence in the global beauty market.”

Related topics: Business & Financial, Financial focus

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