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The answer to these questions may have big implications for the extravagance market. As the country’s extravagance creators struggle to make a gain in clothing, they’re looking to boost sales and profitability by expanding into beauty. According to a Mckinsey review, scent and cosmetics are a „flagship” enterprise that can generate growth in many other categories for leisure brands.
But the plan is not without dangers. The congested category 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 scenario of Burberry, which took its attractiveness company in- residence under original Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the bank’s licence partnership with Interparfums Sa, which held the passport girls from holland for its Montblanc and Van Cleef & Arpels shampoos, sent shares of the company tumbling 9.4 cent on Sept. 6. Kering’s buy of Creed at a 14- periods income multiple in October furthermore made investors sit up and take notice.
