In May 2024, Innovative Beauty Group (IBG), a leading provider of cosmetics solutions aimed at mass-market and discount sectors, embarked on a new chapter by parting ways with the Albéa Group. As part of their refreshed strategy, IBG is moving its headquarters to modern facilities in Paris. The company operates under two main divisions—Orchard Custom Beauty and Fasten Packaging—and has established a global presence with eleven offices. In an engaging discussion with Premium Beauty News, CEO Xavier Leclerc de Hauteclocque shared insights into the company’s impressive growth and ambitious plans.
CEO Insights on Growth
Since being acquired by Fremman Capital last June, how has IBG fared?
We’ve experienced remarkable growth at IBG, significantly outpacing the broader market. Since 2019, our team has grown from 42 to 400 employees, driven by both organic expansion and strategic acquisitions. Our revenue for 2024 is on track to reach nearly 350 million euros, serving a client base of over 200. Interestingly, 25% of these clients contribute to 80% of our total revenue. We prioritize forging long-term relationships with a select group of clients.
Differentiation in the Market
What differentiates IBG in the full-service cosmetics range development market?
We position ourselves as an essential extension of our clients’ teams, delivering agility that optimizes workflow. Through our two primary brands, Orchard, which offers a wide spectrum of product types and formulations, and Fasten, focused on packaging solutions, we provide a comprehensive service approach that constitutes 85% of our business. Frequently, we create extensive product lines, sometimes exceeding 50 items. Our capabilities are amplified by 65 designers and 130 project management experts collaborating with a trusted network of industrial partners that cater to our clients’ unique needs.
Future Development Objectives
What are IBG’s development objectives moving forward?
We aim to expand our offerings into new categories such as perfumes and mists, tapping into significant growth potential. Our revenue from these areas has recently climbed from 6% to 12%. Additionally, we seek to deepen our technical expertise across all segments, including advancements related to microbials and alternatives to microplastics, thereby enriching our value proposition for brands that may be lacking in these capabilities.
Our goal is to maintain a growth trajectory that exceeds the industry average while uncovering opportunities in underexploited segments. For the fourth consecutive year, we’ve increased our growth rate from 20% to 30%, and we plan to keep this momentum going. The full-service model is evolving. While our primary focus has been on product design and development, we aim to master brand design and “social commerce” to create cohesive projects. Currently, entry barriers lie less with product design or manufacturing and more with gaining market visibility. Additionally, IBG plans to open new offices in various countries to provide local support. In February, we will transition to our new Paris headquarters, which will also feature our state-of-the-art packaging and formula laboratories.
Source: Premiumbeautynews.com