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The answer to these questions could include big implications for the extravagance industry. As the world’s extravagance manufacturers struggle to make a income in style, they’re looking to boost sales and profitability by expanding into charm. According to a Mckinsey report, fragrance and cosmetics are a “flagship” organization that can drive expansion in many other categories for comfort brands.
But the technique is not without challenges. The packed category 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 scenario of Burberry, which took its beauty firm in- residence under previous Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the bank’s licensing contract with Interparfums Sa, which held the passport for its Montblanc and Van Cleef & Arpels fragrances, sent shares of the company tumbling 9.4 cent german girl on Sept. 6. Kering’s obtain of Creed at a 14- instances sales two in October furthermore made investors sit up and take notice.