08.13.22
Upscale beauty sales are surging, post-pandemic. As a result, at least one luxury goods maker is said to be considering expanding in the space. Kering, based in Paris, already owns such well-known brands as Gucci, YSL and Balenciaga. Last month, Group Managing Director Jean-François Palus told analysts that beauty is a natural extension of its brand territory.
"Our success with Kering eyewear demonstrates that we can create a lot of value for the brands, on the one side, and as a consequence, for the group, by taking some disruptive and innovative approaches," Palus explained during a conference call. "So beauty is definitely an area where we could contemplate some initiatives in the future, and all options are open."
Industry analysts note that Kering's competitors, including Chanel, Dior and Givenchy, offer a full mix of luxury goods—fashion, beauty, leather and jewelry. Both Dior and Givenchy are owned by LVMH. To keep up with these competitors, Kering may look to expand. The Gucci beauty license is held by Coty Inc. and YSL remains with L'Oréal. Gucci beauty sales top $500 million and YSL beauty sales exceed $1 billion, according to industry estimates. Neither agreement is expected to expire any time soon.
"Our success with Kering eyewear demonstrates that we can create a lot of value for the brands, on the one side, and as a consequence, for the group, by taking some disruptive and innovative approaches," Palus explained during a conference call. "So beauty is definitely an area where we could contemplate some initiatives in the future, and all options are open."
Industry analysts note that Kering's competitors, including Chanel, Dior and Givenchy, offer a full mix of luxury goods—fashion, beauty, leather and jewelry. Both Dior and Givenchy are owned by LVMH. To keep up with these competitors, Kering may look to expand. The Gucci beauty license is held by Coty Inc. and YSL remains with L'Oréal. Gucci beauty sales top $500 million and YSL beauty sales exceed $1 billion, according to industry estimates. Neither agreement is expected to expire any time soon.