Prada Beauty Opens Social Media Account

Abstract: Prada beauty recently set up an independent account @pradabeauty on Instagram. Last month, Prada beauty debuted at the China International Consumer Expo.

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After signing a cooperation agreement with L'Oreal Group in 2019, Italian luxury brand Prada recently set up an independent account @pradabeauty on the social media platform Instagram and opened the Prada Beauty official website. The industry speculates that this is a signal indicating that the Prada Beauty beauty business will be officially launched.

According to the seven posts published on the account, Prada will launch an amber floral fragrance for women called Paradoxe, with famous actress Emma Watson as the spokesperson.

The fragrance's bottle design draws on Prada's iconic triangle and the glass packaging can be recycled. Emma Watson has been the brand's co-star for many years and this new ambassadorship is fitting given her status as an environmentalist.

In 2019, Prada signed a long-term license agreement with the French group L'Oreal to create, develop and market luxury beauty products for Prada, effective January 1, 2021. Prior to this, Prada perfumes were operated by the Spanish beauty and fragrance group Puig.

"The Prada brand is a symbol of excellence and avant-garde with a unique and subversive vision of the brand that appeals to consumers worldwide," said Cyril Chapuy, president of L'Oréal Luxe, in a statement. "This agency will perfectly complement the exceptional portfolio of brands under L'Oréal Luxe."

As a famous Italian luxury brand, Prada is mainly engaged in ready-to-wear collections, leather goods and footwear. Prada Group's total net revenues achieved $3.41 billion. The beauty business, where fragrances are located, is one of the growth poles of the Prada group with the Prada brand perfume business achieving annual sales of about $101.3 million.

After Prada perfume business handover to the L'Oréal Group, in July this year, Prada perfume for the first time launched at the 2nd China International Medical Products Expo with the L'Oréal Group. This move also shows the brand's determination to force the Chinese market.

According to 2021 statistics, the global perfume market will grow at a compound rate of about 7% in the next five years and will reach $63.7 billion in 2025. According to Euromonitor, China's fragrance market will reach $4.4 billion in 2025 with an estimated CAGR of 22.5%. There are few luxury ready-to-wear and leather product groups similar to Prada that have launched perfumes in China, such as LVMH. According to LVMH's third quarter 2021 results, it showed that the perfume and beauty division performed well with total revenue of $688 million in the first three quarters, up 30% from 2020, thanks mainly to the continued growth of the U.S. and Chinese markets and improvements in Europe. Hermes Beauty was also opening its first flagship store in China on the Chinese e-commerce platform Tmall in 2021, where the best-selling product is Hermes Un Jardin Sur Le Nil priced from $81.8 with 4,000+ reviews.

While international conglomerates are winning new growth points in China with the help of perfume, more and more Chinese perfume brands are also pouring into the perfume market. From July 2020 to July 2022, according to sales ranking on Chinese e-commerce platforms Taobao and Tmall, the top 10 Chinese domestic perfume brands are: MINISO, Berbena linn, and SOLEHE, dear boyfriend, RE CLASSIFIED, ttouchme, Dr. lrean Eras, Perfect Diary, Beast, L'SPHERE. Among them, the sale of 2.04 million units of MINISO, accounting for 41.67%.

It is easy to see that the beauty and perfume business of luxury brands in China is the focus of attention of various companies in recent years, which can also reflect the side that the Chinese fragrance market harbors great potential. And combined with the recent actions of Prada beauty, it may give the Chinese high-end perfume market to inject new vitality.