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The answer to these questions could have great implications for the leisure industry. As the world’s extravagance makers struggle to make a income in style, they’re looking to boost sales and profitability by expanding into beauty. According to a Mckinsey report, flower and cosmetics are a “flagship” organization that can drive progress in many other categories for comfort brands.
But the technique is not without threats. The crowded type 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 event of Burberry, which took its beauty enterprise in- house under original Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the agency’s licensing partnership with Interparfums Sa, which held the registration for its Montblanc and Van Cleef & Arpels perfume, sent shares of the company tumbling 9.4 pct on Sept. 6. Kering’s buy of Creed at a 14- times sales two in October furthermore made investors sit up and take notice.