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The answer to these questions was have big implications for the luxury business. As the nation’s extravagance creators struggle to make a earnings in trend, they’re looking to boost sales and profitability by expanding into attractiveness. According to a Mckinsey review, scent and cosmetics are a “flagship” enterprise that can drive expansion in many other categories for luxury brands.
But the approach is not without challenges. The packed classification can be difficult to bite. And the divisions of a brand often do n’t speak to each other, making it difficult to create integrated marketing and communications campaigns swedish dating site in english.
The scenario of Burberry, which took its charm firm in- home under past Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the agency’s licensing contract with Interparfums Sa, which held the license for its Montblanc and Van Cleef & Arpels perfume, sent shares of the company tumbling 9.4 cent on Sept. 6. Kering’s obtain of Creed at a 14- days income three in October furthermore made investors sit up and take notice.