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Marionnaud


Marionnaud is an international French perfume chain based in Paris, founded by Bernard Marionnaud. The group, which employs more than 4,000 people, belongs to the Hong Kong group Hutchison Whampoa since 2005. Marionnaud is the third largest perfumery and cosmetics chain in Europe. In addition to perfumes, cosmetics and body care products, the company also sells assorted accessories. It also offers treatments at more than 250 beauty institutes in France. Marionnaud is part of |A.S. Watson’s Luxury Perfumeries & Cosmetics, the world’s leading healthcare and beauty distribution network, with other perfume and drugstore chains in Europe such as Kruidvat, Superdrug and ICI Paris XL. A.S Watson, in turn, is the retail arm of the Hong Kong-based international conglomerate Hutchison Whampoa.

1. Historical
Bernard Marionnaud (1934-2015) opened his first perfumery in Clamart in 1958, then extended his network to fifteen sales points. In 1984, Marionnaud was taken over by the businessman Marcel Frydman. Since 1986, the acquisition of numerous perfumeries leading to a continuous expansion. In 1996, the acquisition of Bernard Marionnaud Limited Company, an suddenly the number of establishments doubled: the chain has 48 stores. In 1997, Marcel Frydman decided to adopt the Marionnaud brand. Then he introduced the company on the stock exchange. The opening of capital is invested in the continuation expansion of the number of stores. In 1998, the brand was the first retailer to offer its customers a loyalty program: the Marionnaud Card.

In 2000, the companies Alrodo, Europarfums and Parfumerie Principale were acquired, allowing Marionnaud to settle in Switzerland. In 2001, entered Austria with the acquisition of 52 «Impo-Parfumeries» and 35 «Holzer-Parfumeries».

From 1997 to 2002: acquisitions or openings of 1,100 additional locations. In 2005, the financial situation is very precarious, Marionnaud is then bought from Marcel Frydman by the Hong Kong people of A.S. Watson. However, the company was at the top of perfume distribution in Europe, with more than a quarter of the market share. But redundancy plans succeed each other in France.

In May 2005, Belgian businessman Albert Frère announced that he had acquired 5.01% of Marionnaud’s capital and 4.07% of the voting rights. The transaction took place on December 24 via Distripar, a subsidiary of the CNP holding. The group indicated that it was a friendly movement. At this stage, the acquisition of 5 % of the capital represents only a limited investment. But from a strategic point of view, it should be emphasized that the Belgian group is already involved in the perfumery sector, thanks to a 50% stake in Planet Parfum (number 2 in Belgium and Luxembourg). Moreover, he is close to Bernard Arnault, the owner of LVMH Moët Hennessy Louis Vuitton, Marionnaud’s main competitor via its subsidiary Sephora.

In 2005, AS Watson, a subsidiary of the conglomerate Hutchison Whampoa launched a public offer to buy Marionnaud at €21.80 per share and €69.74 per convertible bond. At the end of the first offer, AS Watson holds 90.69% of Marionnaud’s capital. The company is then delisted from the stock market.

After the years 2010, senior managers are chronically replaced by the parent company that demonstrates “authoritarian management”. Marionnaud is in third place behind Sephora and Nocibé, and losses accumulate. With a focus on large luxury brands, the distribution of own-brand products—a margin generator—represents only one-tenth of sales, compared with usually one-quarter in comparable signs.

In May 2018, Li Ka Shing, Marionnaud’s sole shareholder, retired, but no one knows whether or not the retirement of the Hong Kong billionaire will result in a strategic change within the group or the divestment of the company.

2. Organization and Financial Data


When the company was sold in 2008, the sales outlets were heterogeneous, ranging from 80 to 1,500 m2, some were side by side, more than 20% were in deficit; many were closed or renovated from 2010. In 2013, there were more than 1,100 stores in 13 countries, including 531 stores in France. In 2018, the company is located in 10 countries: France, Italy, Spain, Portugal, Switzerland, Austria, Hungary, Romania, the Czech Republic and Slovakia.

The Marionnaud group has two operating companies, Marionnaud Lafayette and Parfumeries.

The latter reported a revenue of 42 million euros in 2017 and a loss of 185 million euros.

The cumulative amount of losses of the two companies amounts to 229 million euros in 2017.

3. Legal Disputes
3.1 Accounting and insider trading

The Association for the Defense of Minority Shareholders (“Deminor”) is asking the Autorité des marchés financiers (AMF, the stock market regulator in France) for an investigation into the financial information and accounts published by Marionnaud over three years. The AMF confirmed that it was in the process of studying the subject without specifying if an investigation was already in progress. Finally, the sanctions commission of the Autorité des Marchés Financiers condemned Marcel Frydman and his son Gérald in November 2008.

3.2 Agreement on the price

In 2006, the Competition Authority sanctioned distributors of Marionnaud, Sephora and Nocibé and other companies for agreeing between 1997 and 2000 on prices in the distribution of perfumes.