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The answer to these questions was have great implications for the comfort industry. As the world’s leisure producers struggle to make a profit in style, they’re looking to boost sales and profitability by expanding into beauty. According to a Mckinsey document, flower and cosmetics are a “flagship” company that can generate rise in many other categories for leisure brands.
But the approach is not without threats. The packed type 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 situation of Burberry, which took its splendor company in- house under previous Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the company’s licence deal with Interparfums Sa, which held the registration for its Montblanc and Van Cleef & Arpels fragrances, sent shares of the company tumbling 9.4 pct on Sept. 6. Kering’s order of Creed at a 14- periods sales different in October likewise made investors sit up and take notice.