BEAUTE LUXE : to ensure that the customer finds the biggest international brands near his home ...
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Company Profile BEAUTE LUXE : to ensure that the customer finds the biggest international brands near his home ... F rom an outsider to a leader in the world’s most complex markets in less than three years, BEAUTE LUXE is now «the» most prominent perfume and cosmetics distributor in the sector. Beauty giants such as L’Oréal, Puig and Hermès have entrusted them with their distribution. Whether in Africa, Asia Pacific or Eastern Europe, BEAUTE LUXE, whose primary expertise concerns Travel Retail, has now also become a leader in local markets! Created in 2019 by David Dayan, known to all the major players in the luxury and beauty industry with more than 30 years of experience in the selective distribution of luxury brands, BEAUTE LUXE has grown, despite an unfavorable socio-economic context. There is no doubt that this group has a great future ahead of it. Entreprendre 351 Entreprendre 351
Company Profile them in Duty-Free zones. And here I job needs to be done”. Having a perfect am, a few years later, president of an knowledge of the terrain and the customs international perfume and cosmetics and traditions of each region in which distribution group. Travel Retail and we distribute is extremely important. You luxury goods are in my DNA”. have to be able to deliver the goods to the most isolated places. This is a signi- You have been a lecturer in the largest ficant investment for both the brands we business schools in France (HEC Essec, distribute and for ourselves, we have no ESC Reims, etc.), teacher at ESCE or Sup right to make mistakes.» de Luxe and have created the Bachelor degree in the luxury sector at the Institute What are your added values in the new Superior of Commerce, and that of Travel markets? Retail at the Conservatoire National des D.D: “Obviously: expertise. The big Arts et Métiers in Paris. Is it important brands already established in Africa, for you to pass on, to encourage new Asia-Pacific, Eastern Europe, or those Can you briefly tell us about BEAUTE generations to join this sector? who want to find a place there, have LUXE and its genesis? D.D: “Transmission is the key! What is already understood this. We have opened David Dayan: «I would say that today the point of working sometimes more than up new markets, which is no small feat. I am one of the veterans of the luxury 20 hours a day if everything evaporates As I like to say, we are an international and selective retailing industry who, when you retire? We do not build houses group on a human scale, and this is over 30 years ago, helped make Travel of cards! It is essential to pass on its reflected in our relationships with our Retail what it is today! Many areas in knowledge to future generations so that partners. In addition, I make it a point the world do not have access to major they in turn can promote the luxury sector of honor to visit each new market in brands of beauty products when demand around the world. I am part of a genera- person in order to assess the risks and is extremely high. Large groups often have tion of Pathfinders, the next generation to opportunities as precisely as possible for neither the agility, nor the flexibility of adaptation, nor the logistical structures develop what we have built. I encourage my students to be curious, to travel as each brand that we distribute. Once the > necessary to adapt to the areas of certain much as they can and in immersion, if specific markets «with high potential» possible, to capture the essence of each BEAUTE LUXE in figures such as Africa, Asia-Pacific or even country and understand the needs and Eastern countries. We therefore started by particularities of each market. When it • A presence in nearly 70 countries developing the duty-free trade in border comes to Travel Retail, nothing is ever on 3 continents (Africa, Asia-Paci- shops (small border shops) then the large set in stone, so you always have to stay fic and Eastern Europe), so around groups gradually entrusted us with their up to date to build up real expertise and 1,500 points of sale such as Borders, local distribution. And here we are, two stay in this business «. ports, airports, diplomatic stores, years later, distribution leaders in these etc. which concerns local markets new markets! « Today, with BEAUTE LUXE, you embody (supermarkets, perfumeries, hair- a true Success Story. Do you want your dressing salons and very soon in What is your background and where does example to serve as a model for new our own perfumeries). your passion or appetite for the world of generations? • A turnover up to 43% over the luxury and beauty come from? D.D: «The thing to remember is that luck last 3 years. D.D: “I fell into the pot more than 35 favors the bold! Try, fail, learn from it and years ago! I have traveled from country try again! You learn from your failures, • A portfolio of around fifty brands to country since I was a child, airports not from your successes! Undertaking to distributed in tax-free areas and no longer hold any secrets for me. I lived bequeath something bigger than you is local markets. in Africa, Asia, and the United States obviously not within everyone’s reach. It (for my studies) where I obtained an means a lot of sacrifice and self-sacrifice MBA in International Marketing then but seeing the world change and evolve I studied at the Gemological Institute through our efforts is extremely rewarding. of America where I obtained a diploma « The watchword today is «adaptability», in Gemology, which allowed me to each country adapts differently, and we join Van Cleef & Arpels as Purchasing must therefore tailor each day according Manager in Thailand. Sometime later, to the health situation. I accepted the position of Asia Pacific Export Director at Givenchy, where I You say that the main thing in your job took my first steps in the very closed is to be efficient and know how to gain world of Travel Retail. Subsequently, I the trust of your partners. Can you tell set up my global distribution company in us more about this? Travel Retail with the Lacoste brand as D.D: «We distribute high-valued and the sole client for 13 years. My company “Sensitive” products in some of the having forged a good reputation in this world’s most dangerous markets, some- area, many luxury brands have entrusted times because of the political and socio- us with their distribution in this sector economic context, sometimes because of of activity in order to quickly establish poor road infrastructures and yet “the Entreprendre 351
Company Profile the acceleration of the digitalization of At the end of 2020, you signed a partner- Major partner brands the purchasing process and direct sales in ship with the PUIG group and then in 2021 stores are complementary. The growing with the HERMES group to distribute BEAUTE LUXE works with large socio-environmental demands of consu- your brands on the Travel Retail market groups such as PUIG and L’OREAL mers will have to be more than ever at in Africa. Besides this market, what are and distributes major brands such the heart of development strategies to your other projects for BEAUTE LUXE? as Hermès, Yves Saint Laurent, satisfy a growing desire to find a more D.D: “Thanks to the strength of our retail Lancôme, Ralph Lauren, Carolina authentic way of life. Millennials, Gen Z network in stores, from the start of the Herrera, Jean Paul Gaultier ... and their influencers will also be one to pandemic and at the request of certain BEAUTE LUXE’s selection criteria: watch because they are now the voice of luxury groups, we supplied numerous brand reputation, supply, marketing, consumers! But above all, luxury homes stores in local markets. In January 2021, communication, but above all, a real must have a pragmatic and concrete we therefore decided to open a new unit desire to collaborate in order to be approach to business, considering the within our group: BEAUTE LUXE DIS- able to best transcribe the brand’s good old law of supply and demand. TRIBUTION. To begin with, we are image in these markets. And believe me, the demand is high, it going to distribute the products of the just shows up in other forms! It’s up to L’Oréal group in supermarkets (Narta, us to be creative in order to respond to Ushuaia Garnier, Mixa, etc.), but also them as best as possible”! professional L’Oréal products in all > markets are open, our local teams take over to always maintain proximity with How has BEAUTE LUXE adapted to the hairdressing salons and cosmetics shops. And finally in pharmacies or drugstores, our retailers”. recent context of the health crisis, resulting the La Roche Posay, Vichy or Cerave in a significant drop in air traffic? ranges. We have also been working for What is your vision of the beauty and DD: “In reality, BEAUTE LUXE was some time on a project of ten own-named Travel Retail market? created in the first place to develop and perfumeries on this continent, so we D.D: “The frontiers of luxury are structure, among other things, the trade will also become a retailer to be able to shifting, and it is now towards new in duty-free shops, and in particular in meet the standards of the biggest luxury markets that we must look. BEAUTE “Border shops”, which abound at the brands! A huge project which should see LUXE opens up new perspectives to be borders of each country and represent the light of day in 2022”. truly present wherever the customer is. more than 15 % of duty-free sales sector. Hyperlocation and ultra-targeted offers We noted that border customers preferen- Finally, you, who travel a lot, how do you will now be part of the future of Travel tially made their purchases in duty-free consume Duty Free? Retail. It is obvious that the luxury shops. We have adapted our distribution D.D: «Obviously Duty Free all over industry is called upon to reinvent itself and therefore suffered relatively little the world are the only places where I in order to renew growth. Long before from the situation because, in a way, we have time to consume. Paradoxically, this crisis, strong signals indicated that mainly reach “local” customers. As far as I think I’m a «normal» customer and the market would be marked this year health precautions are concerned, we have don’t hesitate to take advantage of the by the digitization of purchasing paths. supported our retailers by helping them often-exclusive product offers called After confinement, I think that travel to set up “call and collect” and “click TREX (Travel Retail EXclusive) that will resume but that customers will retain and collect” during lockdowns. For the airport stores offer.» certain “border shops” and dematerializa- smallest structures, we have set up micro- tion reflexes. Luxury brands will therefore credit systems and we have equipped them have to find a happy medium, so that with computer equipment”. Entreprendre 351
Company Profile An eco-responsible group A lot of projects in our boxes! BEAUTE LUXE respects a Innovating and developing the various distri- flawless logistics, which is essen- bution channels ... BEAUTE LUXE recently tial in order not to have a dis- concluded a local distribution agreement in proportionate impact on ecology Rwanda, Uganda, Burundi, and Tanzania. and regularly educates its teams The group will also expand its portfolio by on this subject. The group takes including mass distribution products, such care to measure and limit the as L’Oréal for Mixa, Ushuaïa, Elseve etc. carbon footprint of each of its BEAUTE LUXE has just opened two new transports and gives maximum subsidiaries, in Kampala in Uganda and in priority to electric vehicles for Kigali in Rwanda to take care of this new its deliveries. BEAUTE LUXE distribution. Finally, BEAUTE LUXE will also has a partnership with launch a luxury perfume network in its own specialists for the collection and name in Africa. Objective: to open around recycling of its waste. The group twenty perfumeries on the African continent has also invested thousands of within 5 years. Two first perfumeries should euros in recycling and purifying therefore see the light of day in early 2022 its wastewater. BEAUTE LUXE in Tanzania and Rwanda. also provides advice to its par- tner brands, particularly on product and packaging aspects A group that offers opportunities and CSR commitment. Short BEAUTE LUXE has just recruited around distribution channels, local pro- twenty employees for its Dubai unit and its duction of furniture and use new subsidiaries. When establishing itself in of recycled materials, recourse new markets, the group insists in creating to renewable energies, so specialized local units. Human capital is at many important axes which the heart of BEAUTE LUXE’s HR priorities. are at the heart of BEAUTE The more experts the group has, the more LUXE’s sustainable strategy. it will consolidate its leadership position and be able to best meet the expectations of its partners. More Info www.beauteluxedf.com Entreprendre 351
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