Kering Beauté, the beauty division of luxury group Kering, has unveiled its future strategy, with a focus on fragrances in the high-end market segment. The company plans to launch its first fragrance for Bottega Veneta in the second half of 2024, followed by releases for Balenciaga and Alexander McQueen. In addition, Kering will continue integrating Creed, the high-end perfume house it acquired in 2023, to take advantage of synergies between the brands.
François-Henri Pinault, CEO of Kering, believes that beauty presents a significant opportunity for fashion players. Kering Beauté, led by Raffaella Cornaggia, was established in early 2023 and brings together five of Kering’s brands. However, the company will primarily focus on Bottega Veneta, Balenciaga, and Alexander McQueen, as their beauty businesses are fully integrated into Kering. The CEO of Gucci, on the other hand, declined to comment on the brand’s situation but expressed disappointment over the lack of new product launches.
Kering’s initial emphasis will be on creating fragrances that align with the brand identities of Bottega Veneta, Balenciaga, and Alexander McQueen. The first fragrance for Bottega Veneta will be available in the brand’s stores and selected retailers. The company aims to target the high-end and prestige segments of the perfume market, as perfumes play a crucial role in enhancing brand visibility and desirability for fashion houses.
The global perfume market is set to reach between $44 billion and $55 billion in the coming years, and Kering is particularly interested in the high-end and prestige segments. The high-end segment is expected to grow significantly, averaging a growth rate of 10% to 50% over the next three to five years, while the prestige segment is forecasted to grow at a rate of 3% to 5%.
Creed, the Anglo-French perfume house acquired by Kering, is projected to generate over €300 million in sales next year. With 36 stores and 1,400 retailers, Kering sees immense growth potential for Creed and plans to diversify and strengthen its presence in markets like China and Asia. The brand’s expertise and networks will be leveraged to develop fragrances for Bottega Veneta, Balenciaga, and Alexander McQueen.
At present, Kering has no plans for significant acquisitions in the beauty sector. The focus is on developing Creed and leveraging synergies to boost the presence of Kering’s own brands in the beauty market. François-Henri Pinault views Creed as a fundamental aspect of Kering Beauté’s strategy and a promising opportunity for expanding the brand globally.
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