Kiko Milano

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KIKO Milano, is an Italian cosmetics company, founded in 1997.

History

It was born in 1997 from an idea by Stefano Percassi, one of the six children of Antonio Percassi, the founder of the family group. The first point of sale of the new cosmetics line consists of an 8 square meter corner inside the historic Fiorucci store in piazza San Babila, in Milan. The initial choice places the products in a high range, sales do not take off, the products are recalled and put on sale in one of the Percassi family's shopping centres. With low prices, sales soar and the products sell out in just a few days. A new business model is then studied based on low prices and quality products suitable for all age groups.[1] In 2001 the joint venture was signed with Inditex, the Spanish company that owns Zara and for Kiko, still a small brand which at the time recorded around 2 million euros in revenues, it is the beginning of a period of success.[1]

The range of products is expanded which not only includes the make up line but also skincare, beauty accessories, nail polishes (more than 1400 products will be developed over the years), points of sale are opened initially in Europe, in 2009 the e-commerce channel also becomes active, in 2012 the high-end brand Madina is acquired.[1] The company's revenues and profitability are growing, banks are opening their stock market strings, the expansion of sales points abroad continues, from United Arab Emirates to Qatar, from Russia to Turkey, from Hong Kong to India. And then also in the United States, the first opened in March 2014. In 2015 there will be 900 points of sale, at the beginning of 2017 around a thousand of which only a third in Italy.

But starting from 2015, the company's profitability also began to decline, the stores in the United States pose some problems, and the company is in a complex phase. In July 2017 Antonio Percassi entrusted the leadership of the company to Cristina Scocchia, former L'Oréal.[2] In April 2018, the Luxembourg fund Peninsula entered the company with a 30% stake, having just been released from the capital of Italy.[3] The recovery plan includes strong investments in e-commerce, the shift of the international center of gravity from the West to the East, and the use of franchising formulas for the first time.[4]

Marketing

Kiko products are promoted through a chain of stores for a total of approximately 900 points of sale[5], all of proprietà as well as an online sales point, also managed by the owner group[6].

The sales points present a strong characterization of the brand, a peculiar layout of the sales spaces which sees the positioning of the products in the displays in the name of order[7], combined with their implementation through relatively simple solutions[8]. The type of cosmetics offered, which is aimed at the low-cost market, has allowed the brand to make its way into a market normally reserved for more expensive products from better-known brands[9].

The furnishing elements of the points of sale strongly characterize the Kiko brand to the point that, with sentence no. 11416/15 filed on 13 October 2015, the specialized business section of the Court of Milan prohibited the competing brand Wycon from using in its sales points the set of furnishing elements characterizing the Kiko and condemned the company to pay damages, quantified at 716,250 euros, and to eliminate the furnishings copied from Kiko from its more than one hundred sales points. The Court, in particular, considered that the furnishing concept that characterizes Kiko stores has an "original and creative character" and therefore deserves protection under the Copyright Law[10] , sentence confirmed in April 2018 by the Court of Appeal which spoke of "parasitic competition".[11] The final word to the Supreme Court.[12]

Following the pandemic, the company had to relaunch its stores and thus launched a summer discount campaign thanks to the Waze navigation app, through which the closest points of sale where the customer could go were indicated.[13]

Dati economici

In 2012, the annual research by the consultancy firm Pambianco on the Italian fashion companies most profitably listed on the stock exchange ranked Kiko sixth among the 50 companies taken into consideration by the study[14]. That year the company's revenues reached 351 million. In 2013, a consortium of banks guaranteed 150 million in funds and in September the company announced investments and a further expansion of the number of sales points, again in Europe.[15][16]. In 2013 revenues reached 418 million euros.

In 2014 the company recorded approximately 70 million EBITDA (gross operating margin). Then profitability begins to rapidly decline (from 65 million to minus 30) also due to strong foreign expansion, particularly in the United States. In 2017, with revenues of 610 million[17] and heavy bank debt, debt reorganization and heavy restructuring are initiated. In 2018 the turnover held up (596 million with a drop of 2.5%), Ebitda grew by 37% to 41.5 million,[4] the loss doubled, reaching 64.4 million.

References

  1. ^ a b c "Kiko, cronaca di un successo". 24 March 2014.
  2. ^ "Kiko, l'ex L'Oreal Scocchia in cabina di regia". 4 July 2017. Retrieved 23 April 2018.
  3. ^ "Peninsula entra in Kiko Cosmetici". Retrieved 23 April 2018. {{cite web}}: Unknown parameter |data= ignored (|date= suggested) (help)
  4. ^ a b "Kiko, l'anno della svolta: tiene il fatturato". Retrieved 30 August 2019. {{cite web}}: Unknown parameter |data= ignored (|date= suggested) (help)
  5. ^ KIKO Milano Archived 24 February 2015 at the Wayback Machine, dal sito ufficiale del Gruppo Percassi
  6. ^ Scheda su Percassi E-Commerce Archived 21 September 2013 at the Wayback Machine, dal sito del Consorzio Netcomm
  7. ^ KIKO Make Up Milano: puntare tutto sugli store Archived 19 September 2013 at the Wayback Machine, articolo del sito BusinessInside
  8. ^ Andrea Cinosi, Giorgio Rizzo, I segreti delle aziende low cost. Riflessioni per il mondo delle imprese, FrancoAngeli editore, 2013, pag 152
  9. ^ (in Spanish)Alpha Tiger ficha a Mercadona para reactivar su joya europea, articolo di Expansión, del 21 September 2011
  10. ^ Kiko: vince battaglia su Wjcon, sarà risarcita per 716mila euro, articolo sul sito Il tempo, fonte AdnKronos, 20 October 2015 Archived 21 October 2015 at the Wayback Machine
  11. ^ "La battaglia del rossetto: Wycon condannata a rifare i negozi copiati da Kiko". 10 April 2018. Retrieved 23 April 2018.
  12. ^ "Kiko vince la "guerra dei trucchi" contro Wycon: ha copiato il design dei negozi". 10 April 2014. Retrieved 23 April 2018.
  13. ^ "KIKO Milano aumenta del 307% le visite ai negozi grazie a Waze e raggiunge oltre 1 milione di consumatori in un mese". December 2021. Retrieved 21 December 2021.
  14. ^ Le 50 quotabili della moda «valgono» 12 miliardi: in testa Dolce&Gabbana, articolo de Il Sole 24 ore, del 6 dicembre 2012
  15. ^ Per Kiko finanziamento da 150 milioni di euro Archived 3 October 2013 at the Wayback Machine, articolo di Pambianco News, del 30 settembre 2013
  16. ^ Kiko punta ancora più in alto, articolo di beautybiz, del 27 settembre 2013
  17. ^ "Kiko dei Percassi al riassetto del debito". 1 February 2018. Retrieved 23 April 2018.
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