French luxury goods group, Kering, is making its way into the cosmetics industry with the appointment of Raffaella Cornaggia as the managing director of Kering Beauty. Cornaggia, a seasoned executive who previously worked at Estee Lauder, will lead the company’s expansion into this new segment. Kering’s Group Managing Director, Jean-Francois Palus, emphasized the strategic importance of establishing a presence in the cosmetics industry to unlock the full potential of their luxury brands. Cornaggia has been appointed as the CEO of Kering Beaute, tasked with developing beauty products for top brands such as Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato, and Qeelin.
This move by Kering follows its successful foray into the eyewear division, where it started manufacturing high-end fashion eyewear in 2014. In response to the growing demand for designer labels in a post-pandemic world, luxury groups are taking control of production and expanding their product offerings. Kering’s decision to venture into the cosmetics industry is seen as a positive move in the medium-term, as it allows the company to build the business in-house with its smaller labels before potentially incorporating beauty products from its star brand, Gucci, once its licensing deal with Coty expires in at least five years.
Kering also holds a long-term licensing agreement with L’Oreal for its French fashion label Yves Saint Laurent. With Cornaggia’s extensive experience at Chanel, L’Oreal, and Estee Lauder, which includes expanding brands’ presence in Asia and travel retail, she brings valuable relationships within the sector to propel Kering’s entry into the cosmetics market.
The global beauty market is experiencing rapid growth, generating $357 billion in revenue in 2021, and is projected to continue growing at a mid-to-high single digits rate through 2026. By entering the cosmetics business, Kering aims to capitalize on this growth and leverage its established luxury brand portfolio in this new sector.
Useful links:
1. The Economist – Luxury goods industry
2. Euromonitor International – Beauty and Personal Care
