Insight Flash: Amid Puig IPO, Consumer Edge data examines its key beauty brands and UK consumer spend growth

Beauty conglomerate Puig’s IPO has attracted considerable attention as investors assess the prospects of its diverse portfolio of upmarket beauty brands. We use Consumer Edge data to examine how the company’s direct-to-consumer spend is distributed and evaluate the recent growth trajectory of its top banners.

Spanish Conglomerate Puig Set to IPO

Upmarket Spanish beauty conglomerate Puig made its debut on the public markets this week, a launch that comes at a difficult time for the broader luxury industry as growth slows following the post-pandemic boom. Using CE transaction data, we break down Puig’s DTC spend by brand and geography and assess the loyalty of UK customers to the company’s key brands versus top competitors.

Key Takeaways

  1. Two of Puig’s flagship brands, Charlotte Tilbury and Carolina Herrera, have outgrown the broader US & UK beauty products and women’s apparel industries in our panel by a double-digit percentage each year since 2018.
  2. Charlotte Tilbury and Penhaligon’s enjoy particularly high loyalty amongst UK customers, with repeat purchase rates exceeding those of top competitors like Jo Malone and Diptyque.

Puig DTC Growth Opportunity in UK

While Puig currently derives only around 10% of its total net revenue from direct-to-consumer (DTC) channels, the company has identified growing its DTC capabilities as a strategic priority in the years to come. CE’s panel spend captures DTC sales at Puig’s brands across the US, UK, and five EU countries, and can allow investors to understand the company’s current market presence and areas of potential growth.

According to our panel data, more than half of Puig’s DTC channel sales in 2023 (pro-forma, translated to EUR at daily rates) were derived from the United Kingdom, while the US accounted for 30% and the remainder came from the EU, reflecting the company’s varying channel approaches in each geography. Two UK-native brands, Charlotte Tilbury and Penhaligon’s, drove the UK’s outsized contribution to the regional mix – each has a strong online presence and multiple physical stores or shop-in-shops across the country. Together, these brands accounted for over 70% of Puig’s CE panel sales across all regions. 

Top Puig Brands Spend Growth Rate vs. Industry

Puig has highlighted Charlotte Tilbury and Carolina Herrera as two of its flagship brands, with ambitions to push both past €1 billion in revenue in the near future. CE panel data shows that both banners have posted growth significantly in excess of the broader Beauty Products and Women’s Apparel/Accessories markets in their key geographies. As shown in the chart below, both Carolina Herrera and Charlotte Tilbury achieved CE panel sales growth of nearly 20% per year in the US from 2018-2023, and Charlotte Tilbury compounded at over 25% in the UK during that period, powered by the success of its hit makeup and skincare products combined with innovative digital sales tactics and celebrity partnerships.

Worth noting, however, is that growth appears to have slowed in the early months of 2024, with the y/y change in CE global panel sales for Charlotte Tilbury slowing to +1.8% for the year to-date (down from +16.2% in 2024H2) and sales growth for Carolina Herrera sliding into negative territory.

High Customer Retention of Fragrance Brands Charlotte Tilbury and Penhaligon

As the broader luxury market begins to soften, brands with the most loyal customers will be best positioned to weather any protracted downturns. Using CE’s UK Cohort data, we examine the repeat-purchase behavior of UK customers of several of Puig’s top fragrance and makeup brands, alongside that of select competitors. The chart below shows the average percentage of customers in quarterly cohorts (with first purchases between 2020 and 2022) who returned to shop at a brand again in the quarters following their initial purchase.

Note: Puig-owned brands in color, competitors in grey; average excludes periods 7 and 8 for 2022Q3/Q4 cohorts

This analysis (which pertains specifically to the DTC portion of Puig’s business) suggests that among Puig’s top brands Charlotte Tilbury enjoys particularly high repeat-purchase rates, with ~7.5% of customers returning in an average quarter even 2 years after their initial interaction with the brand. Penhaligon’s customers also re-engage at a relatively high rate, although Byredo lags the other Puig brands with repeat shop rates similar to that of competitor Jo Malone.

Following Puig’s IPO, we can continue to leverage Consumer Edge transaction data to analyze market share, new growth opportunities, their competitive landscape, and customer retention across their family of brands.

Consumer Edge is the leader in data-driven insights focused on the global consumer. If you’d like to benefit from using CE Transact or other products for beauty, and other industry data year-round to track consumer trends and market hits like these, reach out to request a demo.

About the Authors

Michael Gunther is the VP Head of Insights for the CEIC. Explore more of his insights here and follow him on LinkedIn.

Matthew Volpe is an Insights Analyst for the CEIC. Follow him on LinkedIn.