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A GUERLAIN COSTS FIFTY PERCENT MORE TODAY


One of the members of the group Honey Bees and Guerlainophiles recently shared a Guerlain sales catalogue from 25 years ago, giving us a rare opportunity to compare the prices of today with those in 1992, just two years before the LVMH takeover. In the table above, you can see some of the price differences between 1992 and today, after the 1992 price has been converted to € and adjusted for 25 years of accumulated French inflation. The price differences range between +45% and +192%. These rather sizeable price increases beg the following questions:

• Have Guerlain's expenses risen more than its sales, due to more staff, more boutiques, more stock, and more and bigger ad campaigns?

• Has the price of raw materials (fragrance ingredients and bottles) increased beyond the inflation rate?

• Are people today able and willing to invest a larger part of their income and savings in luxury goods, especially those labelled as "Exclusive" as reflected in the whopping price increase of Derby?

• Do LVMH shareholders demand a higher profit than the Guerlain family members did?

You can find the 1992 sales catalogue at Honey Bees and Guerlainophiles

(November 2017)


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