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The answer to these questions was include big implications for the leisure market. As the nation’s leisure creators struggle to make a profit in style, they’re looking to boost sales and profitability by expanding into elegance. According to a Mckinsey statement, perfumes and cosmetics are a “flagship” enterprise that can drive growth in many other categories for leisure brands.
But the plan is not without dangers. The crowded group 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 case of Burberry, which took its charm organization in- home under past Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the bank’s licence agreement with Interparfums Sa, which held the permit for its Montblanc and Van Cleef & Arpels shampoos, sent shares of the company tumbling 9.4 percent on Sept. 6. Kering’s buy of Creed at a 14- days revenue three in October moreover made investors sit up and take notice.