Kering Beauté, the beauty division of luxury group Kering, has unveiled its future plans, highlighting its emphasis on high-end fragrances. Led by Raffaella Cornaggia, the division aims to introduce its inaugural fragrance for Bottega Veneta in the latter half of 2024, followed by fragrances for Balenciaga and Alexander McQueen. This announcement coincides with Kering’s ongoing integration of Creed, the upscale perfume house it acquired in 2023. Kering CEO François-Henri Pinault believes that beauty presents a significant opportunity for fashion companies.
Established earlier this year, Kering Beauté amalgamates five of Kering’s brands: Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato, and Qeelin. However, the company will primarily concentrate on the first three brands, as their beauty divisions are now in-house. Gucci’s beauty line, on the other hand, remains under the management of Coty through a licensing agreement that concludes in 2028. Pinault has underlined that Kering Beauté’s main focus has been on the integration of Creed and on product development for the initial three brands. Once substantial progress is achieved, Kering will explore options for outsourcing its beauty businesses.
Fragrances will be a central aspect of Kering’s strategy, as they enhance brand visibility and appeal. The global perfume market is expected to reach a value between $44 billion and $55 billion in the upcoming years, and Kering is particularly interested in the high-end and prestige sectors. Pinault highlights the importance of launching desirable and sophisticated products that align with the brands’ identities. The strategy will commence with high-end distribution before expanding into the prestige market.
According to financial sources, Creed was integrated into Kering’s accounts in November. The brand generated sales of €250 million in 2023, and Kering anticipates that sales will surpass €300 million next year. Creed’s growth potential lies in diversifying its sales channels and venturing into new regions, specifically China and Asia. Kering also relies on Creed to contribute its expertise and networks to the group, including supply chain management, distribution, and marketing.
While Kering’s immediate focus is on Creed, there are no current plans for further beauty sector acquisitions. The group’s priority is to develop and leverage the synergies with Creed to expedite the growth of its own beauty brands. CEO Pinault views Creed as a cornerstone of Kering Beauté’s strategy and a fundamental factor in the brand’s future success.
