Image credit: Estée Lauder Companies
Luxury giant Kering wants affiliated brands such as Bottega Veneta and Balenciaga to start new product lines.
Kering, the owner of the luxury brands Gucci, Yves Saint Laurent, and others, has reached out to Estée Lauder’s senior executives to head up a new beauty division. The French luxury company is now looking to expand its presence in the cosmetics and perfume industry.
Raffaella Cornaggia has been appointed as chief executive officer on the project and will help construct new brand products for Bottega Veneta, Balenciaga, and Alexander McQueen. The appointment represents the company’s intent to retake full control of the brands under its banner. In the past, Kering has diverged many of its brand’s beauty products to third parties, instead of directly running operations themselves. This is set to change in 2023, as the company seeks to maximize market profits.
Kering Beauté is the name of this newly created beauty division and will allow the company to greater support its subsidiary brands in areas that are believed to be underutilized. Kering Beauté will look to build new avenues of expertise and ensure that the brands under its supervision will reach their full potential.
For the moment, Kering Beauté’s scope of operations will not include the Gucci brand, as the brand’s fragrances and skin care license is currently held by Coty Inc. It will also not feature products under the YSL banner, as it is owned by L’Oréal.
In the aftermath of the pandemic, beauty product sales figures flourished and reached record highs in some cases. This may not remain the case though, as inflation and recession continue to take hold. Executives at Kering are optimistic that the products from the new beauty division will reach the same success the release of its eyewear range did when it was launched back in 2014.
The news of the new beauty division comes after several changes in the company’s affairs. Last week, Sabato De Sarno was appointed by Gucci to the position of new creative director, after the brand’s recent growth diminished substantially.
As a result of Gucci’s drop-off in sales, Kering shares have also dropped over the last year. This drop-off in share price comes at a time when competitors such as LVMH Moët Hennessy Louis Vuitton International’s shares have risen in value.
Overall, Luxury brands have been enjoying a boom period in sales recently. This is somewhat surprising in light of the mounting problems facing the global economy, such as supply and distribution delays, and the ongoing issue of rising inflation. With that being said, the Chinese market remains a weak spot for the entire luxury goods market. This is due primarily to the Covid-19 restrictions still enforced there. With things beginning to let up in Beijing and other places around China, the Luxury giant is now hoping for a surge in sales in both the Chinese retail and online shopping spheres.
Kering’s CEO François-Henri Pinault even visited China this past week, to evaluate storefronts and discuss business with landlords and local government officials. They are hopeful for a return to normality in 2023, after several years of low sales in the region.
Image credit: Estée Lauder Companies
Luxury giant Kering wants affiliated brands such as Bottega Veneta and Balenciaga to start new product lines.
Kering, the owner of the luxury brands Gucci, Yves Saint Laurent, and others, has reached out to Estée Lauder’s senior executives to head up a new beauty division. The French luxury company is now looking to expand its presence in the cosmetics and perfume industry.
Raffaella Cornaggia has been appointed as chief executive officer on the project and will help construct new brand products for Bottega Veneta, Balenciaga, and Alexander McQueen. The appointment represents the company’s intent to retake full control of the brands under its banner. In the past, Kering has diverged many of its brand’s beauty products to third parties, instead of directly running operations themselves. This is set to change in 2023, as the company seeks to maximize market profits.
Kering Beauté is the name of this newly created beauty division and will allow the company to greater support its subsidiary brands in areas that are believed to be underutilized. Kering Beauté will look to build new avenues of expertise and ensure that the brands under its supervision will reach their full potential.
For the moment, Kering Beauté’s scope of operations will not include the Gucci brand, as the brand’s fragrances and skin care license is currently held by Coty Inc. It will also not feature products under the YSL banner, as it is owned by L’Oréal.
In the aftermath of the pandemic, beauty product sales figures flourished and reached record highs in some cases. This may not remain the case though, as inflation and recession continue to take hold. Executives at Kering are optimistic that the products from the new beauty division will reach the same success the release of its eyewear range did when it was launched back in 2014.
The news of the new beauty division comes after several changes in the company’s affairs. Last week, Sabato De Sarno was appointed by Gucci to the position of new creative director, after the brand’s recent growth diminished substantially.
As a result of Gucci’s drop-off in sales, Kering shares have also dropped over the last year. This drop-off in share price comes at a time when competitors such as LVMH Moët Hennessy Louis Vuitton International’s shares have risen in value.
Overall, Luxury brands have been enjoying a boom period in sales recently. This is somewhat surprising in light of the mounting problems facing the global economy, such as supply and distribution delays, and the ongoing issue of rising inflation. With that being said, the Chinese market remains a weak spot for the entire luxury goods market. This is due primarily to the Covid-19 restrictions still enforced there. With things beginning to let up in Beijing and other places around China, the Luxury giant is now hoping for a surge in sales in both the Chinese retail and online shopping spheres.
Kering’s CEO François-Henri Pinault even visited China this past week, to evaluate storefronts and discuss business with landlords and local government officials. They are hopeful for a return to normality in 2023, after several years of low sales in the region.
