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The answer to these questions could include major implications for the extravagance market. As the world’s comfort manufacturers struggle to make a revenue in trend, they’re looking to boost sales and profitability by expanding into elegance. According to a Mckinsey document, perfumes and cosmetics are a “flagship” enterprise that can generate progress in many other categories for extravagance brands.
But the strategy is not without challenges. The crammed category womenandtravel.net/danish-women 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 charm company in- house under past Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the company’s registration agreement with Interparfums Sa, which held the passport for its Montblanc and Van Cleef & Arpels perfume, sent shares of the company tumbling 9.4 percent on Sept. 6. Kering’s buy of Creed at a 14- times profits multiple in October even made investors sit up and take notice.