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Home > News > Market Flash > KENZO Beauty lost to China

KENZO Beauty lost to China

cbo.cn 2022-12-16

Last month, "KENZO Limited Time Florist" landed on Anfu Road in Shanghai, a cross-border joint trend florist, with Boke begonia flowers and pop bouquet elements jointly creating an urban limited-time garden, and the new "Pop Bouquet" series brought by art director Nigo also shined on Tmall Double 11 this year, continuing KENZO's usual bold and creative pop culture language.

 
 
 
However, in stark contrast to the KENZO Tmall flagship store, which is busy displaying new autumn and winter products and Double 12 specials, the KENZO beauty flagship store, which only entered Tmall in October last year, recently announced that it will close the store and end its short-term operation.
 
01
Unclear positioning and sluggish sales
 
KENZO Beauty Tmall official flagship store issued a store closure announcement that it will close its Tmall official flagship store from 23:59 on December 30 this year.
 
 
 
As soon as the news of the closure came out, many netizens were surprised and regretted.
 
 
 
At the same time, some netizens believe that KENZO closed the store because the product itself was not good enough.
 
 
 
For the reasons for the closure, some netizens gave their own ideas.
 
 
 
KENZO is a brand founded in France in 1970 by the famous Japanese fashion designer Kenzo Takada and joined the LVMH group in 1993.
 
 
Kenzo Takada
 
KENZO entered the perfume market in 1988 with the launch of the brand's women's fragrance line Kenzo de Kenzo (aka a Sent Beau), Parfumd'été, Lemonde est beau and the famous "pure water" L'eau par Kenzo collection. In 1991, the brand began launching the men's fragrance line Kenzo pour Homme.
 
 
KENZO "Pure Water", aka "Wind Love"
 
In 2000, the classic perfume "A Flower" Flower by Kenzo was launched, which immediately became the flagship product of the Kenzo series of perfumes, making KENZO one of the world's most famous perfume brands.
 
 
KENZO "One Branch"
 
In 2001, the brand officially launched the skincare line KENZOKI. The brand is inspired by the "KI" in KENZOKI, which is the Japanese word for "qi", which is used to express a state of skin care that advocates a balance between man and nature. KENZOKI offers 4 series for different skin types: bamboo leaves, rice fragrance, white lotus, and ginger flower.
 
 
KENZOKI
 
In 2018, KENZO launched its eye-opening fragrance collection, shaped by the iconic "Big Eyes" logo. IN SEPTEMBER OF THE SAME YEAR, KENZO LAUNCHED ITS FIRST MAKEUP PRODUCT, KENZO WORLDEYE PALETTE, AN EYESHADOW PALETTE MADE FROM 8 DIFFERENT SHADES, FILLED WITH THE BRAND'S SIGNATURE "BIG EYES" ELEMENT FROM THE SHELL TO THE CONTENT, AND EQUIPPED WITH A DEDICATED EYESHADOW BRUSH
 
 
KENZO WORLDEYE PALETTE
 
KENZO has launched fragrance series including "Pure Water" and "One Branch" on its official flagship store of Beauty Tmall, as well as KENZOKI's four series of skin care products including classic "White Lotus", Glow, Hydration and Moisturizing, and KENZO makeup products are not currently on the shelves.
 
KENZO's clothing segment is very popular in the Chinese market, which makes the positioning of "trendy", "young" and "light luxury" in the tone of KENZO brand deeply rooted in the hearts of the people and has gained a good consumer base. In the beauty sector, KENZO has long been deeply rooted in the hearts of people with perfume products, but it is still a niche in the field of skin care and color cosmetics.
 
Compared with the luxury positioning of clothing lines in the domestic market, KENZO's beauty line has always been more "close to the people". The classic "White Lotus" mask is priced at 470 yuan/60ml, the water conditioning lotion is 340 yuan/200ml, and the lipstick product is 220 yuan.
 
 
 
The official flagship store of KENZO Beauty Tmall currently has only 90,000 fans, and the highest-selling product in the store is a 20ml moisturizer sample with a monthly sales of 300, and the monthly sales of the "Pure Water" fragrance, which is the treasure of KENZO's "town store", is only 100.
 
For KENZO, the lack of strength in online beauty stores is evident. KENZO's beauty line is separated from its fashion line in terms of brand image and positioning, and at the same time, it focuses on the fragrance category that focuses on offline personal experience, and skin care and makeup are marginalized, it is no wonder that KENZO beauty will "achieve nothing" online, and can only leave quietly.
 
02
Hold on to the thighs of "offline retail"
 
After Tmall closes, consumers can continue to purchase KENZO's beauty products in Sephora offline stores in China or Sephora online official channels.
 
According to the financial report, in the first three quarters of this year, LVMH Group revenue increased by 20%, specifically the beauty and fragrance business rose by 12%, and only 10% in the third quarter, which was the slowest revenue growth in the third quarter of the group, while Sephora's retail segment increased by 30%, becoming the second largest growth driver in the group after fashion leather.
 
 
 
In fact, not limited to KENZO, the entire LVMH group's beauty and fragrance lines have slowed down, and the retail line represented by Sephora as the group's new "leader" has become the last reliance of KENZO, and the Chinese market, which gradually recovers its vitality from the epidemic, will also become an important force for LVMH.
 
LVMH appointed a new president for North Asia this year to oversee all operations in Greater China and South Korea, and last month formally launched its first renminbi-denominated fund to nurture more brands in China.
 
In addition, earlier this year, LVMH registered a new wholly-owned subsidiary in Hainan, China, and officially launched its local business at the end of June, completing the first batch of perfume and cosmetics imports. In July, LVMH also officially signed a contract with the Administrative Committee of Haikou Comprehensive Free Trade Zone, announcing the official landing of LVMH Perfume & Cosmetics Co., Ltd.'s China Travel Retail Supply Chain Center in Haikou Comprehensive Free Trade Zone.
 
With the construction of the Hainan Free Trade Port, LVMH sees the prospects of the Hainan consumer market and intends to radiate the entire Chinese tourism market through the Hainan duty-free market.
 
 
 
LVMH remains full of expectations for the Chinese market, saying in its September earnings report that it "is cautiously optimistic overall, and will continue to consolidate the Group's leading position in the luxury industry through product innovation and strategies focused on the high-end market." ”
 
Further consolidating the influence in the Chinese market, exploring potential new brands in China, and laying out offline retail channels more comprehensively and deeply may become the focus of LVMH's beauty and fragrance line.Last month, "KENZO Limited Time Florist" landed on Anfu Road in Shanghai, a cross-border joint trend florist, with Boke begonia flowers and pop bouquet elements jointly creating an urban limited-time garden, and the new "Pop Bouquet" series brought by art director Nigo also shined on Tmall Double 11 this year, continuing KENZO's usual bold and creative pop culture language.
 
 
 
However, in stark contrast to the KENZO Tmall flagship store, which is busy displaying new autumn and winter products and Double 12 specials, the KENZO beauty flagship store, which only entered Tmall in October last year, recently announced that it will close the store and end its short-term operation.
 
01
Unclear positioning and sluggish sales
 
KENZO Beauty Tmall official flagship store issued a store closure announcement that it will close its Tmall official flagship store from 23:59 on December 30 this year.
 
 
 
As soon as the news of the closure came out, many netizens were surprised and regretted.
 
 
 
At the same time, some netizens believe that KENZO closed the store because the product itself was not good enough.
 
 
For the reasons for the closure, some netizens gave their own ideas.
 
 
 
KENZO is a brand founded in France in 1970 by the famous Japanese fashion designer Kenzo Takada and joined the LVMH group in 1993.
 
 
Kenzo Takada
 
KENZO entered the perfume market in 1988 with the launch of the brand's women's fragrance line Kenzo de Kenzo (aka a Sent Beau), Parfumd'été, Lemonde est beau and the famous "pure water" L'eau par Kenzo collection. In 1991, the brand began launching the men's fragrance line Kenzo pour Homme.
 
 
KENZO "Pure Water", aka "Wind Love"
 
In 2000, the classic perfume "A Flower" Flower by Kenzo was launched, which immediately became the flagship product of the Kenzo series of perfumes, making KENZO one of the world's most famous perfume brands.
 
 
KENZO "One Branch"
 
In 2001, the brand officially launched the skincare line KENZOKI. The brand is inspired by the "KI" in KENZOKI, which is the Japanese word for "qi", which is used to express a state of skin care that advocates a balance between man and nature. KENZOKI offers 4 series for different skin types: bamboo leaves, rice fragrance, white lotus, and ginger flower.
 
 
KENZOKI
 
In 2018, KENZO launched its eye-opening fragrance collection, shaped by the iconic "Big Eyes" logo. IN SEPTEMBER OF THE SAME YEAR, KENZO LAUNCHED ITS FIRST MAKEUP PRODUCT, KENZO WORLDEYE PALETTE, AN EYESHADOW PALETTE MADE FROM 8 DIFFERENT SHADES, FILLED WITH THE BRAND'S SIGNATURE "BIG EYES" ELEMENT FROM THE SHELL TO THE CONTENT, AND EQUIPPED WITH A DEDICATED EYESHADOW BRUSH
 
 
KENZO WORLDEYE PALETTE
 
KENZO has launched fragrance series including "Pure Water" and "One Branch" on its official flagship store of Beauty Tmall, as well as KENZOKI's four series of skin care products including classic "White Lotus", Glow, Hydration and Moisturizing, and KENZO makeup products are not currently on the shelves.
 
KENZO's clothing segment is very popular in the Chinese market, which makes the positioning of "trendy", "young" and "light luxury" in the tone of KENZO brand deeply rooted in the hearts of the people and has gained a good consumer base. In the beauty sector, KENZO has long been deeply rooted in the hearts of people with perfume products, but it is still a niche in the field of skin care and color cosmetics.
 
Compared with the luxury positioning of clothing lines in the domestic market, KENZO's beauty line has always been more "close to the people". The classic "White Lotus" mask is priced at 470 yuan/60ml, the water conditioning lotion is 340 yuan/200ml, and the lipstick product is 220 yuan.
 
 
 
The official flagship store of KENZO Beauty Tmall currently has only 90,000 fans, and the highest-selling product in the store is a 20ml moisturizer sample with a monthly sales of 300, and the monthly sales of the "Pure Water" fragrance, which is the treasure of KENZO's "town store", is only 100.
 
For KENZO, the lack of strength in online beauty stores is evident. KENZO's beauty line is separated from its fashion line in terms of brand image and positioning, and at the same time, it focuses on the fragrance category that focuses on offline personal experience, and skin care and makeup are marginalized, it is no wonder that KENZO beauty will "achieve nothing" online, and can only leave quietly.
 
02
Hold on to the thighs of "offline retail"
 
After Tmall closes, consumers can continue to purchase KENZO's beauty products in Sephora offline stores in China or Sephora online official channels.
 
According to the financial report, in the first three quarters of this year, LVMH Group revenue increased by 20%, specifically the beauty and fragrance business rose by 12%, and only 10% in the third quarter, which was the slowest revenue growth in the third quarter of the group, while Sephora's retail segment increased by 30%, becoming the second largest growth driver in the group after fashion leather.
 
 
 
In fact, not limited to KENZO, the entire LVMH group's beauty and fragrance lines have slowed down, and the retail line represented by Sephora as the group's new "leader" has become the last reliance of KENZO, and the Chinese market, which gradually recovers its vitality from the epidemic, will also become an important force for LVMH.
 
LVMH appointed a new president for North Asia this year to oversee all operations in Greater China and South Korea, and last month formally launched its first renminbi-denominated fund to nurture more brands in China.
 
In addition, earlier this year, LVMH registered a new wholly-owned subsidiary in Hainan, China, and officially launched its local business at the end of June, completing the first batch of perfume and cosmetics imports. In July, LVMH also officially signed a contract with the Administrative Committee of Haikou Comprehensive Free Trade Zone, announcing the official landing of LVMH Perfume & Cosmetics Co., Ltd.'s China Travel Retail Supply Chain Center in Haikou Comprehensive Free Trade Zone.
 
With the construction of the Hainan Free Trade Port, LVMH sees the prospects of the Hainan consumer market and intends to radiate the entire Chinese tourism market through the Hainan duty-free market.
 
 
 
LVMH remains full of expectations for the Chinese market, saying in its September earnings report that it "is cautiously optimistic overall, and will continue to consolidate the Group's leading position in the luxury industry through product innovation and strategies focused on the high-end market." ”
 
Further consolidating the influence in the Chinese market, exploring potential new brands in China, and laying out offline retail channels more comprehensively and deeply may become the focus of LVMH's beauty and fragrance line.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.
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