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The answer to these questions was have big implications for the leisure industry. As the nation’s extravagance producers struggle to make a revenue in vogue, they’re looking to boost sales and profitability by expanding into attractiveness. According to a Mckinsey statement, perfumes and cosmetics are a “flagship” firm that can generate expansion in many other categories for leisure brands.
But the plan is not without challenges. The crammed 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 circumstance of Burberry, which took its beauty organization in- home under erstwhile Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the agency’s licence contract with Interparfums Sa, which held the license for its Montblanc and Van Cleef & Arpels shampoos, sent shares of the company tumbling 9.4 percent on Sept. 6. Kering’s purchase of Creed at a 14- periods revenue different in October moreover made investors sit up and take notice.
