What's The Biggest Difference Between The ELC And The LVMH Group

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Current Marketing Strategy All together, the beauty industry generated $50.1 billion in revenue for the 2017 fiscal year. The beauty industry is dynamic, and always appeling to new trends. Additionally, the beauty industry is one of the fastest growing markets, and expected to grow 2.6% annually until 2023(Cohen, 2018). Majority of the industry growth can be exhibited by industry leaders ELC, L’Oreal, and LVMH, as well as new entrants to the market. Essentially, the beauty industry is separated into six smaller categories: cosmetics, skin care, personal hygiene, hair care, fragrances, and oral care. Studies have shown that women purchase products from every category to enhance their beauty routine. More importantly, the average women utilize 12-15 of those products …show more content…

The biggest difference between the ELC and the LVMH group, is that the LVMH group also produces leather goods, fashion lines, technology, and wines (LVMH, 2017). Moreover, the LVMH group also owns the Sephora franchise. As a result, this makes it more difficult for the ELC to promote their products within the franchise. Generally, LVMH brands, such as Fresh and Kat Von D Beauty, or the most marketed within the franchise. The LVMH group is able to offer free samples through their Sephora stores and also relies heavily on PR packages and direct marketing. In particular, Kat Von D Beauty offers the direct competition to MAC Fix+ setting spray. The brand was created by tattoo artist Kat Von D, when she became frustrated with the lack of makeup that covered her tattoos. As a result, she created her beauty line with a setting spray that claims to prolong makeup wear for up to 24 hours. The product is targeted at a similar demographic as MAC’s Fix+. The product retails for $24 for 4oz. and $14 for 1oz. However, because the brand is owned by the LVMH group, it is exclusive to Sephora and not available for retail at Ulta Beauty or department

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