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Aèsop Product Performance Analysis FY2017

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Content

• Introduction
• Country and channel overview
• Store performance overview
• Store performance detail
• Product category overview
• Product category by country and channel
• Product category detail
• Product category top and bottom sellers
• Conclusion and Recommendation

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Introduction

This analysis will be looking at Aesop’s product performance over 12 month period for FY2017 to identify key business strengths, weaknesses, opportunities and threats (SWOT). The analysis will try to interrogate Aesop’s performance across countries, channels and stores it operates to identify poor performance and where opportunities lies. Finally the analysis will look at product category performance to identify the best sellers and bottom seller across all channel and countries.

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Aèsop Country& Channel Performance FY2017

Overview

• Bulk of the revenue generated is from AU at $15m
• Highest sales were generated through Retail channel.
• Average Unit Retail (AUR) and Gross Margin is lower in WHSL as expected compared to other direct to customer channels (DTC)
• Sales YTD for online and department stores in UK have seen negative growth compared to other two countries.

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Aèsop Store Performance FY2017

• All Stores in US have shown positive growth YOY and strong GM% in their performance.
• GM% across all countries and stores seems to be the strength.
• Selfridges and online operations in UK have shown negative growth while in AU both stores in Sydney Myer seems to be flat.

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Aèsop Store Performance Detail FY2017

• In UK store online and Selfridges are showing a negative growth against last years sales
• In AU 3 stores (Online, Sydney City Myer, Sydney City DJs) have not seen a growth against FY2016

Aèsop Category Performance FY2017

SKIN

Retail Sales $3.69M

Units 28,013

AUR $132

GM% 53%

Sales Mix 52%

Retail Sales vs LY%

2%

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Aèsop Category Performance By Country & Channel FY2017

Fragrance is the smallest category in all three countries having its biggest share in AU. Fragrance has seen lesser growth YOY in AU.

Skin products are selling well across retail stores this may be due to the high standard of customer engagement and services in our stores.

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Aèsop Product Performance Detail FY2017

• Biggest overall YOY growth was seen from US, however the biggest improvement in sales were recorded from the Fragrance category in UK.

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Aèsop Cross Channel

SELL-OUT $ YTD

#1

#2

#3

#4

$814K

Obsidian Shock��AUR $208

$695K

Alien Laurel��AUR $174

$609K

Boston Moon��AUR $201

$512K

Burly Reactor��AUR $155

$510K

Thirteen Sun��AUR $155

#5

$225K

Worthy Elm��AUR $126

#1

$203K

Mister Brooklyn��AUR $187

#2

$196K

Alien Goose��AUR $102

#3

$189K

Brutal Noir��AUR $168

#4

#5

UK-TOP 5

UK-BOTTOM 5

2017

2016

2017

2016

#1

#2

#3

#4

#5

#1

#2

#3

#4

#5

$804K

Obsidian Shock��AUR $209

$648K

Alien Laurel��AUR $177

$587K

Boston Moon��AUR $203

$519K

Thirteen Sun��AUR $152

$487K

Confusing Particles��AUR $159

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$106K

Arrogant Bistro��AUR $91

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Aèsop Cross Channel

SELL-OUT $ YTD

#5

AU –TOP5

#5

$1.72M

Obsidian shock

AUR $214

#1

$1.04M

Alien Laurel

AUR $185

#2

$1.39M

Boston Moon

AUR $211

#3

$1.14M

Burly Reactor

AUR $172

#4

$1.06M

Thirteen Sun

AUR 161

$1.58M

Obsidian Shock

AUR $218

$1.36M

Alien Laurel

AUR $185

$1.35M

Boston Moon

AUR $208

$1.14M

Burly Reactor

AUR $171

$1.01M

Confusing Particles

AUR $166

2017

2016

#1

#2

#3

#4

AU –BOTTOM 5

#5

#5

#5

#5

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Aèsop Cross Channel

SELL-OUT $ YTD

US –TOP5

#1

#2

#3

#4

2017

2016

#1

#2

#3

#4

US –BOTTOM 5

$1.30M

Obsidian Shock

AUR $220

$1.14M

Alien Laurel

AUR $190

$1.05M

Boston Moon

AUR $213

$912K

Burly Reactor

AUR $175

$903K

Confusing Particles

AUR $162

#5

#5

#5

#5

Conclusion

• Aesop’s has seen steady growth of sales for FY2017 at YOY growth of 4% across all countries and channels and the strength lies in its gross margin as GM% across the board sets at over 50%
• Most sales were generated from AU followed by US which makes it over 75% of total sales generated, However given the size of operation in UK it looks to be promising to grow that market share further in FY2018
• Retail channel diverts the most traffic towards the total revenue, however online channel looks to be the weakest in FY2017 ,this could be an opportunity to grow in FY2018
• Biggest growth for FY2017 for stores have seen in US which indicates that the opportunity for growth lies mostly in US due to the size of the market.
• Fragrance has seen the biggest growth YOY for UK and US but not as well in AU although the biggest share came from AU. This may be a missed opportunity in FY2017 but could improve further with the help of marketing campaigns. Biggest growth category for AU is hair products and this may be an avenue to leverage campaign recources to enhance Fragrance performance in AU.
• Although the top selling products are key lines to improve for FY2018, most bottom sellers seems to be same for all countries indicating a refresh in the product line to capture sales from best selling products will further increase the market share for Aesop.

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Recommendations

• Opportunities:
• Strategies Marketing campaigns to drive traffic to online operations.
• Increase promotions and point of sale to engage customers in store to maximise sales opportunities
• Maximise opportunities using products bought with to upsell and cross sell strategies
• Refresh product line for bottom sellers
• Threats:
• The competitors such as the body shop, Kiehl, Aveda and L’Occitane are ramping their operations and campaign strategies in a bid to improve their market share globally and this may impose a threat to Aesop if poor performances and opportunities to grow are not addressed.

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Questions?

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