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The answer to these questions may have major implications for the pleasure industry. As the nation’s comfort creators struggle to make a earnings in trend, they’re looking to boost sales and profitability by expanding into beauty. According to a Mckinsey statement, fragrance and cosmetics are a “flagship” firm that can generate expansion in many other categories for comfort brands.
But the method is not without risks. The crowded classification can be difficult to crack. 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 case of Burberry, which took its beauty company in- home under former Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the bank’s licence agreement with Interparfums Sa, which held the license for its Montblanc and Van Cleef & Arpels shampoos, sent shares of the company tumbling 9.4 pct on Sept. 6. Kering’s order of Creed at a 14- instances sales different in October likewise made investors sit up and take notice.
