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The answer to these questions could have great implications for the leisure business. As the country’s extravagance producers struggle to make a revenue 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” firm that can generate progress in many other categories for extravagance brands.

But the approach is not without challenges. The crammed classification can be difficult to crack. 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 splendor company in- home under former Ceo Angela Ahrendts in 2013, offers a cautionary tale. The decision to terminate the company’s licensing partnership with Interparfums Sa, which held the certificate for its Montblanc and Van Cleef & Arpels perfume, sent shares of the company tumbling 9.4 pct on Sept. 6. Kering’s obtain of Creed at a 14- occasions profits two in October even made investors sit up and take notice.