The Estée Lauder Companies Inc. is acquiring high-end fragrance brand Le Labo. The deal is part of a wider interest in niche scents that has seen the growth of the market over the past few years. In 2012, market research experts NPD Group noted 19% yearly growth in the ’Jewelry & Niche Fragrance’ category in the USA, compared with 7% growth for classic ’Designer’ scents.
Founded in 2006 by fragrance industry veterans Fabrice Penot and Eddie Roschi, Le Labo has offices in New York and London. The brand provides a highly selective assortment of fragrances and scented products, including body care products and candles, as well as limited-edition “City Exclusive” scents, available only in certain boutiques by region.
High-quality products, the with a distinct French heritage and an emphasis on fine craftsmanship and personalization combined with unique retail experiences which emphasize service and exclusivity, are the base of the Le Labo success. The products are available in the brand’s freestanding stores in New York, London, Paris, Los Angeles, San Francisco, Tokyo and Hong Kong, as well as select in prestige department stores in global flagship cities, and, of course, on the brand’s website.
“Le Labo is the perfect complement to our portfolio of prestige beauty brands,” said Fabrizio Freda, President and Chief Executive Officer of The Estée Lauder Companies. “Fabrice and Eddie have built a beautiful, incredibly unique brand with a focus on craftsmanship, personalization, and High-Touch services. We look forward to collaborating closely with them to continue building on their extraordinary success with discerning global consumers.”
Le Labo will be overseen by John Demsey, The Estée Lauder Companies’ Group President, responsible for Estée Lauder, M·A·C, Tom Ford, Prescriptives, Bobbi Brown, Jo Malone, La Mer, Bumble and bumble, Smashbox and Aramis & Designer Fragrances.
Terms of the deal were not disclosed. The acquisition is expected to close in November 2014.