CARRARA advisory

???????????? ????. ??????????????: ?????????????????? ?????? ?????????????? ???????????????? An analysis of the estimated revenues of 45 leading global brands reveals a diverse landscape when it comes to the role beauty plays in their financials: ???????????? ?????????????????????????????? ???? ????????????: Brands like Marc Jacobs and Moschino generate a significant share of their revenue from beauty, especially fragrances. This success is often fueled by strong partnerships with expert licensees like Coty and Interparfums. ???????????? ???????????????????????????????? ???? ????????????: Iconic luxury houses such as Louis Vuitton and Tiffany & Co. continue to focus primarily on fashion and accessories, with beauty serving as a secondary, smaller contributor. ?????? ???? ???????? ??????????????????? ? Heritage brands typically use beauty to complement their primary business, while fragrance-focused brands rely heavily on beauty for substantial revenue. ? Strategic licensee partnerships, such as those with L’Oreal and Coty, are key to driving growth in the beauty sector. ? Regional preferences also play a role—Europe’s strong demand for fragrances and Asia’s emphasis on skincare influence the beauty revenue mix. For brands, success lies in finding the right balance: expanding beauty where it's underrepresented, or diversifying it where it dominates. The goal is to align beauty with the brand’s identity and broader market opportunities. You can find more detailed information about this analysis on our blog: ????????: Some of the data plotted in the graph are estimates generated using AI tools. Please feel free to share more accurate data if available. #Luxury #Beauty #Fragrance #BrandStrategy

The European beauty retail landscape highlights a fascinating interplay between the size of a retailer’s store network, its revenue, and store productivity. These metrics reveal strategic priorities and provide insights into the operational models driving success in this dynamic industry. 1. ?????? ??????????-???????????????????????? ??????????-??????: Retailers with extensive networks, like Rossmann (4,700 stores) and DM-Drogerie Markt (4,000 stores), show that scale is often essential for capturing market share in the mass-market segment. However, a larger footprint doesn’t always translate to higher productivity per store. DM achieves €3M/store annually, while Rossmann lags at €2.13M, suggesting that operational efficiency, private-label strategies, and product curation can make a significant difference. 2. ???????????????????????????? ???????????? ???????????? ????????????????????????: Retailers with a smaller footprint often compensate with more focused strategies. For example, Muller (900 stores) and Sephora EU (860 stores) achieve €4.44M/store and €4.16M/store, respectively, by targeting premium and diversified markets. Their success is underpinned by offering high-value products, experiential shopping, and customer loyalty programs. 3. ?????????????????????? ???????????????????? ???? ?? ???????????????????????? ??????????????: Digital-first retailers like Notino demonstrate the potential of combining a robust online presence with a limited number of physical stores. With just 100 stores, Notino achieves €7M/store—leading the industry in productivity. This trend underscores the growing importance of e-commerce in the beauty sector, particularly for tech-savvy consumers who value convenience and personalization. 4. ?????????????? ??????’?? ???????????? ?????????? ?????????? ??????????: A strong correlation exists between revenue and store productivity, but outliers prove that strategy matters more than numbers. Chains like Boots (€3.48M/store) leverage pharmacy integration to drive cross-category sales, while Marionnaud (€1.67M/store) struggles with less differentiated offerings in a highly competitive market. ???????????????? ???????????? ? Shift to Experience-Led Retail: Chains such as Sephora lead the charge in creating immersive, experiential stores that attract higher-spending customers, driving revenue even in smaller store networks. ? Sustainability as a Differentiator: Retailers like DM increasingly focus on eco-friendly private-label products to capture the growing segment of conscious consumers. ? Omnichannel Optimization: Retailers balancing online and offline strategies, like Notino, highlight the efficiency and profitability of a targeted physical presence, paired with digital outreach. Check our latest post on our blog in case you need more insights on this topic https://lnkd.in/eGW5r7KY #BeautyRetail #ConsumerInsights #RetailStrategy #BeautyIndustry #BusinessInsights

???????????? ???????????? ???? ??????????: ???????? ???????????????????? ???????????????????? ???? ???????????? ?????????? ?????????????????? The beauty industry is evolving, driven by shifting consumer preferences, tech innovation, and social media influence. By monitoring internet searches, conversations, and trending mentions, brands are identifying strategies to stay ahead in a competitive market. Here's a snapshot of key trends: ????????????????: ?????? ??????????????-???????????? ?????????????? Skincare dominates beauty with products blending scientific and natural ingredients to tackle concerns. Examples include tranexamic acid moisturizers, snail mucin serums, and bakuchiol eye creams. East Asian brands like Beauty of Joseon integrate traditional ingredients like rice water and mugwort into modern formulations. Sustainability also shapes the market, with brands like Naturium prioritizing eco-conscious practices. ????????????????: ???????????????????? ???????????? ?????????? ???????????? Haircare is booming with solutions for thinning hair, scalp health, and detoxification. Brands such as Scandinavian Biolabs and Redensyl Hair Serum are winning consumers through targeted, science-backed products. The category reflects a wellness-centric and aspirational appeal, pairing functionality with luxury branding. ????????????: ???????????????? ?????????? ???????????????????? Makeup trends balance natural looks like the "clean girl aesthetic" with bold innovations like duo-chrome eyeshadows. Viral products such as Wonderskin Lip Masque highlight the role of TikTok in driving consumer adoption. ???????? ????????: ???????????????? ???? ?????? ???????? Body care is evolving into a wellness-driven space, with cultural influences (e.g., gua sha tools, African net sponges) inspiring functional products. ?????? ???? ?????????????? Beauty trends today emphasize ingredient transparency, cultural authenticity, and sustainability. Social media amplifies visibility, while innovation bridges the gap between tradition and modernity. To thrive, brands must adapt by combining science, storytelling, and purpose. If you want to know more, please check our more extensive blogpost at https://lnkd.in/eGW5r7KY #BeautyTrends #SkincareInnovation #SustainabilityInBeauty #CleanBeauty #BeautyTech #Kbeauty #BeautyScience #IngredientStorytelling #HaircareInnovation #BeautyDevices #SocialMediaBeauty #BeautyIndustryInsights #TrendyBeauty #WellnessBeauty #EcoFriendlyBeauty

As the Chinese beauty market faces challenges due to shifting consumer priorities and economic pressures, global beauty brands are recalibrating their strategies to maintain growth. At Carrara Advisory, we explore how industry leaders like L'Oréal, Shiseido, and Puig are leveraging sustainability, digital transformation, and product innovation to adapt to this evolving landscape. In this article, we delve into the key strategies driving success in China’s changing market environment. Read the full insights to understand how leading brands are positioning themselves for the future in this crucial market. #BeautyIndustry #ChinaMarket #BusinessStrategy #Sustainability #DigitalTransformation #ECommerce #MarketInsights #ConsumerTrends #LuxuryBeauty #Innovation https://lnkd.in/eEr-nE23

???????????????? ?????? ???????????????????? ???? ?????????? ?????????????? The watch industry’s pricing structure is remarkably intricate, with significant variation in price points—even within a single brand. Many brands offer over 150 distinct price points, yet only 2-5 models share the same price. Most SKUs are priced uniquely, typically determined through a bottom-up approach that prioritizes design, costs, and margin targets over psychological pricing thresholds. In luxury categories like watches, pricing often adheres to the principle of ????????????-????-???????????? rather than ????????????????-????-??????????. This means models are crafted for their design and craftsmanship first, with pricing reflecting those attributes rather than aligning with market-wide thresholds or harmonized ranges. However, this approach can create price gaps around psychological thresholds, leading to alternative strategies for managing price perception.. Distinct Brand Approaches to Pricing: ? ?????????????????????? ????????????: Brands like Cartier, Rolex, and Jaeger-LeCoultre focus on lower entry points, with small price increments between models, especially under the CHF 100K threshold. ? ???????????????? ??????????: Piaget adopts slightly larger price jumps between models, offering a broader price range within a similar number of price points. ? ???????????? ??????????????????????????????: Audemars Piguet, Patek Philippe, Vacheron Constantin, and Breguet start at similar entry levels but show significant divergence at higher tiers. For example, Breguet and Vacheron Constantin maintain a strong focus below CHF 100K, while Audemars Piguet and Patek Philippe quickly exceed this range. ? ?????????????????? ????????????: Brands like Lange & Sohne and Jacob & Co. operate at higher starting points, with steep price escalations between models. For simplicity, our analysis focuses on the first 85 price points for these brands, noting that some—like Lange & S?hne—publish only a limited number of prices. This diversity in pricing strategies highlights the delicate interplay between design, costs, and brand positioning in the luxury watch market. #LuxuryWatches #WatchIndustry #PricingStrategy #LuxuryMarket #Timepieces #BrandPositioning #LuxuryDesign #AudemarsPiguet #PatekPhilippe #Rolex #Cartier #SwissWatches #BusinessInsights Laurent Benkiewicz DRP Data Research Publications

?????? ?????? ?????? ?????????????? ???? ?????????? ?????????????????? ?????????????????????? Niche fragrance brands are celebrated for their ability to cater to the most discerning clients, offering olfactive profiles so unique and exclusive (in both price and distribution) that some might feel as though they own a bespoke scent. But here’s the question: How sustainable and efficient are these extensive collections? And what’s the optimal number of fragrances within a successful lineup? In the graph below, we’ve analyzed productivity per fragrance variant against the number of variants (with sphere size representing revenues). This allowed us to categorize niche brands into three distinct tiers: ? ?????? ???????????????????? - with high productivity and curated collections ? ??????-?????????? ???????????? – Moderate productivity with similarly sized collections ? ???????????????? ?????????????? - Smaller brands with lower productivity, ranging from curated to very broad collections. Many in this group are newcomers, poised to grow as they achieve scale. ?????? ??????????????: The larger the brand, the fewer fragrance variations it often needs to achieve success. However, this hasn’t always been the case. Historically, many top-performing brands started with tightly curated collections. These brands have managed to maintain efficiency by generating the majority of their revenue from just a handful of iconic fragrances, even as their portfolios expanded. What about price positioning? #NicheFragrance #LuxuryPerfume #BrandStrategy #Productivity #PerfumeBusiness #FragranceTrends #LuxuryInsights #BusinessEfficiency

????????????’?? ????????????????????: ???????????????? ???? ?? ???????????????? ?????????? The beauty industry continues to grow despite an ever-evolving global landscape. According to forecasts from over 15 research firms, the market is set to nearly double in size over the next decade. This remarkable resilience is fueled by innovative product development, a growing consumer focus on health and wellness, and the rapid embrace of digital transformation. ???????????????? ????????????????????: ? Skincare & Haircare: These categories lead the charge, driven by demand for sustainable, high-performance products that reflect personal expression. ? Nutri-Beauty: Tapping into the wellness trend, this segment is booming as consumers seek holistic solutions, prioritizing clean, ethical, and transparent ingredients. ? Fragrance: Personalized and niche scents are experiencing a renaissance, appealing to consumers seeking individuality and luxury. ? Makeup: After a slower post-pandemic recovery, innovation in skin-friendly formulations and inclusive shades is reinvigorating the category. ???????? ???????????? ????????????????????? However, beauty’s growth isn’t without its challenges: ? China: A luxury slowdown has shifted younger consumers toward value-driven spending, with local brands gaining ground. ? Geopolitical Tensions: Disruptions in trade routes and regulatory complexities are compelling brands to rethink sourcing and distribution strategies. While the industry consensus projects a 10-year CAGR of 5.8%, we anticipate a more moderate average of 4.5%, reflecting historical trends and the need for brands to adapt to these emerging dynamics. ???????????????????? ?????? ???????????????????? ???????? ?????? ?????? The beauty industry’s ability to navigate and thrive amidst change reaffirms its resilience. Brands that balance innovation with agility will be best positioned to succeed in this evolving landscape. Exciting times lie ahead for this ever-adaptive market—one that continues to captivate consumers and redefine itself. #BeautyIndustry #BeautyTrends #CleanBeauty #Skincare #GlobalBeauty #BusinessGrowth.

The principle behind tariffs may be sound; however, their anticipated benefits might not materialize due to a mismatch between tariff volatility and the time required to implement the necessary resources to achieve the intended outcome. Tariffs are designed to make the cost of imported goods equivalent to that of locally produced ones, addressing trade imbalances and favoring local production. However, this view oversimplifies the situation. Recent talks about tariff increases under the Trump administration suggest we might see a new wave of hikes. Companies like Edgewell Personal Care (https://lnkd.in/e9GAqTmm) are already trying to lock in prices with Chinese suppliers for the next 3–4 years in anticipation of these hikes. But let’s take a step back and examine the bigger picture. Consider the USA-China AHS AVE Tariff, a metric used to calculate the average tariff rate applied to imports for specific countries or product lines. This "effectively applied" tariff accounts for actual tariffs, considering preferential trade agreements. The ad valorem equivalent (AVE) translates tariff values into percentages of a product’s value, simplifying cross-product comparisons. From 1995 to 2004, this percentage steadily declined, while imports from China increased. After stabilizing within the 6%–7% range, imports continued growing. Even the tariff increases under Trump did not significantly alter this trend. The only substantial impacts on imports came from the Great Recession (2008-2009) and the COVID-19 pandemic (2019-2020). While these events impacted certain categories more than others, the broader trend shows little movement. So, why isn't the tariff strategy moving the needle? For one, tariffs need to truly bring the cost of imported goods in line with local production costs — but that’s not always the case. Even more crucially, the volatility of tariffs, often tied to political cycles, complicates the transition from imports to local production. Shifting to local production requires scaling up or building new facilities, which involves significant investments in fixed assets (beyond regular working capital) that must be amortized over long periods. Additionally, other time-bound resources, such as building local knowhow, wait for expiration or pay for patent or other legal protections, identify and hire qualified resources not necessarily readily available, are essential. Ultimately, if tariffs don't bring cost parity or if the transition to local production fails due to tariff volatility, consumers will bear the brunt of the cost increases — leading to inflation and reduced purchasing power. In conclusion, while tariffs may help, successful implementation requires thoughtful execution and careful planning to address all related implications. #Tariffs #TradePolicy #LocalProduction #EconomicStrategy #GlobalTrade #SupplyChain #BusinessStrategy #Inflation #Manufacturing

We’re excited to announce an enhanced version of our website, designed to better serve our clients and expand our network www.carrara-advisory.com Our Services section now offers deeper insights into the unique solutions we provide across brand strategy, business modeling, competitive analysis, licensing, M&A, and financing, all tailored for the beauty and luxury industries. From high-level strategies to hands-on advisory, our goal is to be your go-to partner for data-driven growth and value creation. We’re also introducing a Join Us section! If you’re an experienced advisor looking to bring your expertise to our team, we invite you to explore this new addition. Learn how you can contribute to the growth and transformation of our clients in an advisory role. Additionally, don’t miss our Publications section, where you can purchase exclusive industry reports and books. These resources provide valuable insights for those looking to stay at the forefront of the beauty and luxury sectors. Visit us and discover how our team of experts can help your business thrive. #BusinessStrategy #BrandAdvisory #LuxuryIndustry #BeautyIndustry #DataDrivenInsights #AdvisoryOpportunities #JoinOurTeam #Innovation #StrategicGrowth #MergersAndAcquisitions #CompetitiveAnalysis #CareerInAdvisory #CarraraAdvisory

???????????????????? ????????????: ?????????????? ???? ?????? ?????????????????????? ????????! In today’s fast-evolving market, businesses must stay ahead by embracing agility. It’s not just a trend—it’s the competitive advantage that can define success in uncertain times. If you’re looking to ensure your company is change-ready, we’re here to help. Let’s explore how you can build a resilient, adaptable organization that thrives amidst change. For supply chain-focused initiatives, feel free to reach out directly to our Senior Strategic Advisor, Pietro D'Arpa. His expertise can guide your transformation and optimize your processes for sustained growth.