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The answer to these questions may include great implications for the comfort business. As the world’s comfort manufacturers struggle to make a income in vogue, they’re looking to boost sales and profitability by expanding into elegance. According to a Mckinsey record, flower and cosmetics are a “flagship” business that can generate growth in many other categories for luxury brands.
But the strategy is not without dangers. The crowded 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 circumstance of Burberry, which took its attractiveness organization in- home under previous Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the company’s registration arrangement with Interparfums Sa, which held the passport for its Montblanc and Van Cleef & Arpels perfume, sent shares of the company tumbling 9.4 percentage on Sept. 6. Kering’s acquire of Creed at a 14- times sales different in October also made investors sit up and take notice.