COMPANY OR ORGANIZATION BACKGROUND

LVMH*

*This backgrounder is taken from my LVMH - Tiffany’s Acquisition midterm paper for PR 529.

LVMH Moet Hennessy Louis Vuitton is a global conglomerate specializing in luxury goods. Their various holdings are organized into “houses”: wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, selective retailing, and other activities. Headquartered in Paris, LVMH began in 1987 through the merger of Louis Vuitton with Moet and Hennessy. It now includes 75 subsidiaries or “maisons” including Tiffany’s, Celine, Christian Dior, Marc Jacobs, Givenchy, FENDI, Fenty Beauty, TAG Heuer, and Sephora (LVMH). Its current market cap is $495 billion and its stock is currently valued at about $196. The CEO of LVMH is Bernard Arnault, known for his concept of wanting to create “star brands”, or highly profitable brands that “speak to the ages” but are “intensely modern” (Investopedia). This philosophy of seeking out long term impact feeds into the DNA of all LVMH holdings, creating luxury brands that are timeless but still culturally relevant. 

KENDO BRANDS

Kendo Brands is a beauty brand incubator belonging to LVMH. It is responsible for Fenty Beauty, Fenty Skin, OLEHENRIKSEN, KVD Beauty, and Bite Beauty. Kendo is focused on innovation within beauty retail, aiming to develop the global strength of its individual brands. There are certain principles or “kredos” that Kendo infuses throughout its brands: a playful, upbeat energy; a creative, leading-edge mindset; and a devotion to DEIA principles (Kendo Brands). 

FENTY BEAUTY & FENTY SKIN

Launched in 2017, Rihanna’s Fenty Beauty disrupted the status quo of the beauty world with its inclusive 50-shade foundation line-up. At the heart of the brand is this mission for inclusion — Rihanna herself said, “Fenty Beauty by Rihanna was created for everyone: for women of all shades, personalities, attitudes, cultures, and races” (LVMH). The brand’s identity is rooted in the idea that makeup is an opportunity to “take chances,” “take risks,” and “dare to do something new” (Kendo Brands). In 2020, Rihanna launched Fenty Skin, an extension into the lucrative, growing skincare industry. Fenty Skin carries the same personality as Fenty Beauty and features clean, vegan, cruelty-free, gluten-free, refillable, recyclable products. Fenty Beauty and Fenty Skin are co-owned by LVMH and fall under the Kendo Brands roster. Both brands are sold direct-to-consumer online, as well as through LVMH-owned beauty retailer Sephora. 

SAVAGE X FENTY

In 2018, Rihanna launched Savage X Fenty under co-ownership of LVMH and TechStyle Fashion Group, a fashion brand incubator. Like all of Rihanna’s brands, Savage X is a diversity disruptor and body positivity promoter. It incorporates DEIA across all components: models, sizing, styles, and gender. Savage X is also known for changing the status quo of the lingerie industry with its stunning, scroll-stopping, and inclusive runway shows (TIME). 

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MISSION STATEMENT (BUSINESS GOAL)

The mission of Fenty Beauty, Fenty Skin, and Savage X Fenty is to provide daringly inclusive products that promote confidence, positive self-worth, and ownership of your identity in an otherwise stale, standardized, and stodgy market.

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RESEARCH  

SECONDARY RESEARCH FINDINGS:

Statista - Fenty Beauty Brand Profile, United States, 2022 - cosmetics users, ages 18-64 

• 53% are aware of the brand (total US)

• 19% like the brand (total US)

• 13% use the brand (total US)

• 10% are likely to use the brand again (total US)

• 77% of total Fenty Beauty brand users are likely to use the brand again

Statista - Fenty Beauty Brand Awareness By Gender, United States, 2021 - adults ages 18+

• 25% of men were aware of the brand

• 36% of women were aware of the brand

Statista - Prestige/Luxury Cosmetics Market Dossier

• Top 10 countries outside of the U.S. for revenue in prestige cosmetics and fragrances market: 

  • Japan, China, United Kingdom, France, Germany, India, Italy, Brazil, Spain, South Korea

 

 

 

 

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• 22% growth in prestige hair care sales in United States, 2022 (compared to 18% in makeup, 12% in skincare, and 11% in fragrance)

• 60% sales growth in prestige makeup remover products in United States, 1st quarter of 2022 (compared to 45% in blush, 44$ in lipstick, 38% in bronzer, 30% in sunscreen, and 23% in fragrance)

Google Trends - search term “Fenty Beauty” in Beauty & Fitness category - past 12 months

 

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Google Trends - search term “Fenty Beauty” in Beauty & Fitness Category - Top 25 Rising Related Queries - past 12 months

Lavender: related to Fenty Beauty brand

Yellow: related to celebrity beauty brands

Mauve: related to specific competing products

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Google Trends - search term “Fenty Beauty” (blue) vs. “Rare Beauty” (red) vs. “Kylie Cosmetics” (yellow) in Beauty & Fitness category - past 12 months

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Google Trends - search term “Fenty Beauty” in Beauty & Fitness category - past 12 months - by metro

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