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The answer to these questions was include big implications for the pleasure market. As the country’s luxury manufacturers struggle to make a profit in trend, they’re looking to boost sales and profitability by expanding into charm. According to a Mckinsey report, fragrance and cosmetics are a “flagship” business that can drive growth in many other categories for pleasure brands.
But the plan is not without threats. The crowded classification can be difficult to break. 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- residence under past Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the company’s licensing deal 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 order of Creed at a 14- days income different in October furthermore made investors sit up and take notice.