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The answer to these questions was include big implications for the extravagance business. As the country’s leisure manufacturers struggle to make a revenue in fashion, they’re looking to boost sales and profitability by expanding into beauty. According to a Mckinsey review, flower and cosmetics are a “flagship” firm that can generate expansion in many other categories for luxury brands.

But the approach is not without dangers. The packed class 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 situation of Burberry, which took its beauty firm in- house under past Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the agency’s licence deal https://womenandtravel.net/bulgarian-women/ with Interparfums Sa, which held the registration for its Montblanc and Van Cleef & Arpels perfume, sent shares of the company tumbling 9.4 pct on Sept. 6. Kering’s purchase of Creed at a 14- occasions income two in October moreover made investors sit up and take notice.