There is a lot of buzz around Kering and its potential entry into the beauty industry. Does the French luxury conglomerate plan to bring back some of its activities? Is there a possibility of other beauty acquisitions?
Gucci, YSL, and Balenciaga are among the companies in the company’s portfolio. Industry insiders believe the answer is “yes,” and that a shift might come sooner rather than later.
“[Kering brands’] competitors Dior, Chanel and Givenchy have everything fashion, beauty, leather goods, jewelry, etcetera under the same roof. It gives for sure more consistency, synergy and power to the brand. Late last month, a Kering executive suggested the group is ready to explore beauty.
The jewels in Kering’s crown are Gucci, whose beauty license is held by Coty Inc., and Yves Saint Laurent, still with L’Oréal. Industry sources estimate those generate sales of a half-billion euros and 1 billion euros, respectively.
Coty also operates the Alexander McQueen, Bottega Veneta and Balenciaga fragrance and beauty licenses. Interparfums runs Boucheron’s business in perfume, while Lalique Group develops Brioni’s fragrance business.