Many cosmetic conglomerates tripped over themselves to invest in or acquire indie brands that were experiencing viral sales. They often overpaid to prevent a competitor from grabbing the brand. Then the virality died down, the momentum slowed, and these brands began to underperform, so the conglomerates are looking to either offload them or close them.
LVMH is still actively seeking to sell their 50% stake in Fenty Beauty, and is considering shutting down Make Up For Ever.
I would say that Estée Lauder Companies is experiencing the most dramatic buyer's remorse, with the momentum of many of the brands they acquired at a premium price, stalling (Too Faced, MAC, Smashbox...).
Certainly outside the USA many consumers will no longer buy from either ELC or companies owned by them after the ill judged comments made regarding the US taking over Greenland against the wishes of its people & the Danish.
Another well written article. Thank you for this information.
An interesting overview thank you.
What do you think the outlook is for the mega beasts of the cosmetic worlds? ELC, L’Oreal, LVMH etc?
Many cosmetic conglomerates tripped over themselves to invest in or acquire indie brands that were experiencing viral sales. They often overpaid to prevent a competitor from grabbing the brand. Then the virality died down, the momentum slowed, and these brands began to underperform, so the conglomerates are looking to either offload them or close them.
LVMH is still actively seeking to sell their 50% stake in Fenty Beauty, and is considering shutting down Make Up For Ever.
I would say that Estée Lauder Companies is experiencing the most dramatic buyer's remorse, with the momentum of many of the brands they acquired at a premium price, stalling (Too Faced, MAC, Smashbox...).
Certainly outside the USA many consumers will no longer buy from either ELC or companies owned by them after the ill judged comments made regarding the US taking over Greenland against the wishes of its people & the Danish.
Consumers are starting to vote with their wallets