luxury market to slow but launches continue
Reports from Deutsche Bank and Oddo Securities suggests that the luxury products sector including cosmetics is entering a period of slowdown and have revised their economic forecasts for PPR, Hermes and LVMH. Deutsche Bank in particular believes the sector will experience its worst year ever in 2009 and has reduced its earnings-per-share forecast by 17% for 2009 and 23% for 2010. Among the modest downward revisions by Oddo is Christian Dior.
Reports from Deutsche Bank and Oddo Securities suggests that the luxury products sector including cosmetics is entering a period of slowdown and have revised their economic forecasts for PPR, Hermes and LVMH. Deutsche Bank in particular believes the sector will experience its worst year ever in 2009 and has reduced its earnings-per-share forecast by 17% for 2009 and 23% for 2010. Among the modest downward revisions by Oddo is Christian Dior.
However, despite these gloomy forecasts, John Galliano has announced the launch of his enterprise's first perfume this month. The John Galliano enterprise is controlled primarily by Christian Dior Couture. The product has been assigned exclusively to Sephora until the end of this year and is selling at prices of between €60 and €100 per bottle. The perfume will be sold at over 1000 outlets in France next year along with China, Italy, the Middle East and Russia.
Meanwhile, the fashion and luxury goods group Zadig & Voltaire will also introduce its first perfume product on the market in February next year. The product, developed in collaboration with Le Labo, a US enterprise, will be sold at between €230 and €250 and will be called Le Patchoulait. The family-owned company has said the launch is part of a strategy to develop on the international market and is considering opening its capital to financial markets.