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The answer to these questions was have big implications for the pleasure industry. As the world’s extravagance makers struggle to make a earnings in fashion, they’re looking to boost sales and profitability by expanding into elegance. According to a Mckinsey record, scent and cosmetics are a “flagship” firm that can drive rise in many other categories for leisure brands.
But the method is not without risks. The congested type can be difficult to bite. And the divisions of a brand often do n’t speak to each other, making it difficult to create integrated marketing and communications campaigns.
The scenario of Burberry, which took its splendor business in- house under erstwhile Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the bank’s registration arrangement with Interparfums Sa, which held the license for its Montblanc and Van Cleef & Arpels shampoos, sent shares of the company tumbling 9.4 percentage on Sept. 6. Kering’s acquire of Creed at a 14- times revenue multiple in October likewise made investors sit up and take notice.
