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The answer to these questions may have great implications for the pleasure market. As the world’s pleasure designers struggle to make a gain in clothing, they’re looking to boost sales and profitability by expanding into splendor. According to a Mckinsey review, perfume and cosmetics are a «flagship» enterprise that can generate growth in many other categories for leisure brands.
But the plan is not without dangers. The congested 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.
The scenario of Burberry, which took its charm firm in- house under past Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the company’s registration contract with Interparfums Sa, which held the registration for its Montblanc and Van Cleef & Arpels shampoos, sent shares of the company tumbling 9.4 pct on Sept. 6. Kering’s order of Creed at a 14- occasions income three in October moreover made investors sit up and take notice.