custom lotion pumps

The custom lotion pumps skin care brand L’Occitane International SA (0973.HK) is now facing the bottleneck of slowing sales growth and declining net profit. Recently, L’Occitane released an unaudited performance report for the 2019 fiscal year. According to the announcement, as of the end of March, the revenue of L’Occitane increased by 8.1% to 1.4269 billion euros in the 2019 fiscal year. In 2018, it was 1.3194 billion euros. The performance growth rate has slowed down. It is worth noting that its net profit has fallen for three consecutive years (2018 mid-fiscal year, 2018 fiscal year,

and 2019 mid-fiscal year). The 2018 net profit has reached a new low. This is related to its investment in marketing in China, including spokesperson fees and cooperating with the increase in marketing expenses of the group on Tmall and other channels. In terms of market, for the whole year of 2018, L’Occitane's same-store sales in Mainland China increased by 6.9%, the highest among all markets. However, in fiscal year 2019, L’Occitane net added 17 stores, a significant decrease from 41 in 2018. During the period, the Chinese market closed 7 stores. In recent years,

L’Occitane has used celebrity endorsements to enhance its brand awareness, thereby driving sales growth. At the same time, sales expenses have increased for four consecutive years, reaching 819 million yuan in 2018. Among them, sales expenses in fiscal year 2017 were 793 million yuan, accounting for 62% of the current operating income. The research and development expenses are only 17.55 million euros, accounting for 1.33% of the current operating income.

Net additions decreased by 24 stores year-on-year in FY 2019, and L’Occitane net added 17 stores, which was a significant decrease from 41 in FY 2018. During the period, there were 7 net store closures in the Chinese market, which may be related to the downturn in sales. On June 15, a reporter from the Yangtze River Commercial Daily came to the L’Occitane counter in the Dayang Department Store on Zhongshan Avenue. Although it was a weekend, there were very few customers in the store. During the nearly one hour stay, only dozens of people entered the store.

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