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The answer to these questions could include big implications for the leisure market. As the world’s extravagance makers struggle to make a income in style, they’re looking to boost sales and profitability stockholm travel guide by expanding into elegance. According to a Mckinsey record, perfume and cosmetics are a “flagship” business that can drive development in many other categories for pleasure brands.
But the method is not without threats. 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 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 licensing agreement with Interparfums Sa, which held the certificate for its Montblanc and Van Cleef & Arpels fragrances, sent shares of the company tumbling 9.4 percent on Sept. 6. Kering’s purchase of Creed at a 14- times sales two in October furthermore made investors sit up and take notice.