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The answer to these questions could have great implications for the extravagance business. As the world’s comfort producers struggle to make a earnings https://womenandtravel.net/albanian-women/ in style, they’re looking to boost sales and profitability by expanding into attractiveness. According to a Mckinsey record, fragrance and cosmetics are a “flagship” business that can drive expansion in many other categories for leisure brands.
But the strategy is not without dangers. The crowded class 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 circumstance of Burberry, which took its beauty enterprise in- residence under erstwhile Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the company’s licence arrangement with Interparfums Sa, which held the registration for its Montblanc and Van Cleef & Arpels shampoos, sent shares of the company tumbling 9.4 percent on Sept. 6. Kering’s buy of Creed at a 14- days sales three in October moreover made investors sit up and take notice.
