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The answer to these questions may include great implications for the extravagance business. As the country’s pleasure makers struggle to make a profit in vogue, they’re looking to boost sales and profitability by expanding into beauty. According to a Mckinsey document, scent and cosmetics are a « flagship » organization that can generate growth in many other categories for extravagance brands.
But the strategy is not without threats. The crammed classification 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 situation of Burberry, which took its elegance firm in- home under former Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the company’s licence contract with Interparfums Sa, which held the license for its Montblanc and Van Cleef & Arpels fragrances, sent shares of the company tumbling 9.4 per-cent on Sept. 6. Kering’s obtain of Creed at a 14- periods profits two in October moreover made investors sit up and take notice.