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The answer to these questions could include big implications for the pleasure business. As the world’s pleasure designers struggle to make a profit in clothing, they’re looking to boost sales and profitability by expanding into charm. According to a Mckinsey record, fragrance and cosmetics are a «flagship» organization that can generate growth in many other categories for luxury brands.
But the technique is not without hazards. The congested class 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 beauty organization in- house under former Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the agency’s registration partnership with Interparfums Sa, which held the license for its Montblanc and Van Cleef & Arpels perfume, sent shares of the company tumbling 9.4 pct on Sept. 6. Kering’s acquire of Creed at a 14- periods revenue different in October also made investors sit up and take notice.