Every year at the beginning of the new year, it is a time for price increases for luxury bags or major beauty brands. On February 19, as the price of LV's entire series of bags increased by 4% to 6%, the Estee Lauder Group also raised the prices of 1,500 of its products on the same day. The beauty and skin care products of L'Oreal Group and LVMH Group have increased in price to varying degrees. Recently, reporters visited and investigated and found that La Mer, Estee Lauder, Jo Malone and other brands under the Estee Lauder Group have increased their prices starting from February 19. The increase amount for some products ranges from 10 yuan to 100 yuan.
The prices of some products of many brands under the Estee Lauder Group have increased. The prices of about 1,500 products under the Estee Lauder Group's brands such as Estee Lauder, La Mer, Tom Ford, Jo Malone, Mac, and Yuemu. The average price increase of products is 10 % to 30%. The price increase of Tom Ford Fiery Night Black Perfume (100ml) is the most obvious, rising by 600 yuan from 1,350 yuan to 1,950 yuan.
tom Ford Lieyeshe Black Perfume (100ml) price increases by 600 yuan. Regarding the reasons for the price increase, reporters asked Tom Ford JD.com's self-operated official flagship store, and customer service responded: "Product pricing needs to comprehensively consider various factors, including operating costs, transportation and warehousing costs, currency exchange rates and other reasons. Some products will be stabilized and adjusted in due course." Suggested selling price”.
A reporter’s investigation found that online Tmall official flagship stores such as Estee Lauder, La Mer, Jo Malone, Yuemu Origin, Mac, etc. have increased their prices. The increase in the retail price of some products ranges from 10 yuan to 100 yuan. This price adjustment It is effective from February 19, 2024. Specifically, the price of Estee Lauder's small brown bottle eye cream has increased from 550 yuan to 565 yuan, the 75 ml version of Zhiyan Collagen Cream has increased from 1,080 yuan to 1,130 yuan, and the 30 ml version of Black Diamond Essence has increased in price from 1,900 yuan to 1,980 yuan.
The price of La Mer’s high-end brand La Mer, which also belongs to the group, has also increased. The 15 ml version of La Mer’s classic essence cream has increased from 920 yuan to 945 yuan, and the 60 ml version has increased from 3080 yuan to 3160 yuan. Some specifications have not been adjusted. . The customer service of the brand's official flagship store on Tmall said, "There is no price increase for the 30ml facial cream series, essence series, essential oil products and some facial mask products." The customer service of Estee Lauder's official Tmall flagship store said that this recommended retail price adjustment applies to all Our officially authorized retail channels. The customer service of Estee Lauder's official Taobao flagship store said in a reply to reporters that the price of some products in the store has indeed been adjusted starting from February 19, but there are currently Women's Day activities, such as Estee Lauder's flagship small brown bottle eye cream, the current price is 565 yuan, before the adjustment was 550 Yuan, but you can get a 15 yuan gift certificate during the March 8th Festival event, and the actual price of a single payment is still 550 yuan. The end time of this promotion has not yet been determined. The customer service of Mac's Taobao official flagship store said that the brand's best-selling liquid foundation and concealer trays have maintained their original prices and have not participated in price increases. The prices of foundation brushes and concealer brushes have increased by 15-20 yuan. On February 22, reporters visited a shopping mall counter in Tianhe District, Guangzhou City and confirmed that Estee Lauder, La Mer, Jo Malone and other counters have updated the price tags of products with this price adjustment. A salesperson at the Jo Malone counter told reporters that the 30 ml version of the classic fragrance series has been raised from 660 yuan to 670 yuan, and the 100 ml version has been raised from 1,390 yuan to 1,400 yuan.
Regarding the reason for this price increase, the customer service of Estee Lauder Tmall official flagship store stated that product pricing needs to comprehensively consider various factors, including raw material prices, operating costs, transportation and warehousing costs, etc., and will evaluate and adjust the recommended retail prices of some products in a timely manner. . L'Oreal and lvmh Group's beauty and skin care products have previously increased prices to varying degrees. Biotherm, Kiehl's, YSL Yves Saint Laurent, Armani and other brands under L'Oreal Group have also raised product prices. According to previous media reports, Biotherm has increased by 30%-40%, and Kiehl's has increased by 30%-40%. Starting from January 1, 2024, the retail prices of some products will be adjusted, while YSL will start adjusting prices from February 1. Armani will adjust the prices of some products starting from February, with an increase of basically 10 Within %. Many overseas big brands such as Givenchy, Guerlain, Dior Beauty and L'Occitane under the LVMH Group also announced price increases. Some brand sales staff said that this round of price increases for beauty products is the “largest in history.” Some netizens said in the comments, "It is the 'custom' for cosmetics to increase prices after the Spring Festival. If you are not in a hurry to use them, just wait for promotions before buying them."Many netizens commented that the price has indeed increased!
Some netizens complained: It feels like it is rising every year...
Some netizens also said: Domestic products are more cost-effective!
Frequent price increases may be related to the pressure of declining performance. In fact, as early as last year, Estee Lauder had raised the prices of some of its products many times. According to media reports, in early May 2023, Estee Lauder (Shanghai) Trading Co., Ltd. issued a notice on the “Suggested Retail Price Increase of Products.” On July 1, 2023, the online flagship store of Estee Lauder-related brands increased prices by 2.3% to 25.6%. During January 2023, the Estee Lauder Group also issued a price increase notice. Its Estee Lauder, Clinique, Tom Ford, Yuemu Origin, Bobbi Brown and Jo Malone increased the retail prices of their products, with an increase of less than 10%. The frequent price increases may be related to the pressure of declining performance. In the past two years, Estee Lauder's performance has been slightly weak. In early February, Estee Lauder released its second quarter financial report for fiscal year 2024. In the three months ended December 31, 2023, Estee Lauder's net sales were US$4.28 billion, a decrease of 7% from US$4.62 billion in the same period last year, and net profit was US$313 million, a decrease from US$394 million in the same period last year. 18.39%. The main reason for the decline in performance is the weakness of travel retail in Asia and the high-end beauty market in mainland China. By product category, skin care business revenue fell by 10%, with net sales of Estee Lauder, Clinique and Origins falling, and The Ordinary and La Mer performing strongly; cosmetics business revenue fell by 8%, perfume business sales remained flat, and the Estee Lauder brand's The decline was offset by growth at Le Labo and Jo Malone London. In fiscal year 2023, the Estee Lauder Group's net sales were US$15.91 billion, a year-on-year decrease of 10% from US$17.74 billion in the previous year. Net profit was US$1.01 billion, a sharp decline from US$2.39 billion the previous year.
According to previous reports, the Estee Lauder Group announced this year that it will further expand its profit recovery plan for fiscal years 2025 and 2026, including restructuring measures to lay off 3% to 5% of its employees. This layoff will involve 1,860 to 3,100 employees. Estée Lauder expects the restructuring plan to boost operating profit to $1.1 billion to $1.4 billion. Estee Lauder said in its latest financial report that it expects the group's organic net sales to return to double-digit growth in the second half of fiscal year 2024. Xu Xiongjun, a strategic positioning expert and founder of Jiude Positioning Consulting Company, said in an interview with reporters that international beauty brands have the ability and space to charge a premium and achieve sales growth through price increases, thus opening up a competitive edge in the fiercely competitive beauty red sea. Due to the gap between domestic products or mid- to low-end brands, maintaining the high value of the brand is a more advantageous marketing strategy.
Source: Red Star News
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