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The answer to these questions was include major implications for the leisure market. As the country’s comfort designers struggle to make a profit in vogue, they’re looking to boost sales and profitability by expanding into beauty. According to a Mckinsey review, scent and cosmetics are a “flagship” business that can drive expansion in many other categories for luxury brands.
But the approach is not without risks. The crammed classification can be difficult to split. 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 charm business in- residence under previous Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the bank’s licensing agreement with Interparfums Sa, which held the certificate for its Montblanc and Van Cleef & Arpels shampoos, sent shares of the company tumbling 9.4 per-cent on Sept. 6. Kering’s obtain of Creed at a 14- times revenue three in October likewise made investors sit up and take notice.