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As luxury brands continue to shift from licensing models to in- residence equity, they are focusing on charm. The industry’s highest margins in this class does help reposition and enhance a company’s reputation. Nevertheless, bringing a beauty business in- home is not without difficulties.
It can be challenging to craft a strong product message across all stations, for instance, if a fashion and beauty crew does not collaborate properly. Moreover, beauty is a highly aggressive and congested industry, making it challenging to establish a dedicated consumer base. However, when done effectively, it can be a potent application for leisure models to sprout. Puig is an example of a business that safely merged a fashion and beauty firm and experienced significant growth.
