Kering is entering the beauty business. The French luxury conglomerate has appointed Raffaella Cornaggia as CEO of new division Kering Beauté, in charge of developing the category for Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato and Qeelin.
An Italian national, Cornaggia joined Estée Lauder Companies in 2008, and was most recently international senior vice president and general manager for Estée Lauder and Aerin, responsible for the brands’ worldwide business outside of the US and Canada.
She has also worked on brands such as Tom Ford Beauty and Mac Cosmetics. Before joining Estée Lauder Companies, she worked for Chanel Parfums Beauté, and she began her career at L’Oréal. At Kering Beauté, she will be “supported by a team of seasoned professionals”, the company said. She will be based in Paris, reporting to Palus, and become a member of the group’s executive committee.
Kering enters a highly competitive market, dominated by beauty pure players such as L’Oréal, Estée Lauder Companies and Coty; as well as in-house offerings from luxury groups LVMH, Chanel and Hermès (Hermès launched skincare and cosmetics in 2020). Kering was reportedly in advanced talks last year to acquire Tom Ford, which analysts observed could have helped the conglomerate kickstart its in-house beauty business — but in the end, Estée Lauder Companies agreed to acquire Tom Ford in a $2.8 billion deal.
Still, analysts are optimistic about Kering’s beauty venture. “Beauty is an amazing business because it allows you to have entry-price points without diluting the brand image. Moreover, it brings marketing spend that helps create equity for your brands,” says Mario Ortelli, managing director of luxury strategy advisory firm Ortelli & Co. “I believe Kering Beauté will be very successful because the group has a stable of highly desirable brands that can resonate very well in beauty. Moreover, Kering has the firepower to acquire beauty brands.”
Kering previously shared its ambitions in the beauty category, taking a cue from its success with Kering Eyewear. Its two largest brands, Gucci and Saint Laurent, are already present in beauty under licences. Alexander McQueen and Bottega Veneta have had fragrances with Coty, and Boucheron has fragrances with Inter Parfums. Coty has held the Gucci licence since it acquired P&G Beauty in 2016, and L’Oréal acquired YSL Beauté from Kering (then named PPR) in 2008.
Reference: https://www.voguebusiness.com/beauty/kering-enters-beauty-with-new-entity-led-by-former-estee-lauder-exec
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