Kering beautè’s challenge

Kering's beauty bet is starting to take shape. The acquisition of Creed and the launch of the Bottega Veneta fragrance collection were just the first steps in an expansion that will leverage the potential of the brands Alexander McQueen, Balenciaga, Pomellato, and Qeelin, of which the François-Henri Pinault owns the beauty rights, while Gucci and Yves Saint Laurent are currently licensed to Coty (at least until 2028) and L’Oréal, respectively, Brioni to Lalique until the end of 2024, and Boucheron to Interparfums until 2025.

The project is led by Raffaella Cornaggia, an Italian manager with more than 25 years of experience in the sector in realties such as Chanel and L’Oréal, and Estée Lauder, appointed ceo of the division created in January 2023. «Starting a project from scratch was super exciting and super intense», Cornaggia told MFF. «Honestly, I think it's been the best adventure in cosmetics for several years, because for a group like Kering, which has such fabulous maisons in its portfolio, deciding to create an ex novo beauty division is a big challenge».

The first operations were two. On the one hand, the acquisition of Creed in June 2023, a brand specializing in deluxe fragrances, has enabled Kering beauté to acquire the necessary scale, a high-level financial profile, and a solid platform to support the future development of other fragrance brands. On the other hand, the recent launch of Bottega Veneta’s first fragrance collection under the creative direction of Matthieu Blazy, inspired by the history of Venice as a center for trade and exchange between different cultures. The creative has developed five fragrances of the collection as an olfactory weave, a fabric of ingredients from different countries and continents. Raffaella Cornaggia herself spoke about these projects to MFF.

What strategy have you developed for Kering beauté?

It is a strategy that revolves around three key areas that are particularly important to me: creativity, innovation, and sustainability. The division aims to work on the potential of the fashion houses we have in our portfolio and bring them to their maximum development. These are brands that have very high rankings, so the important thing is to be able to develop their offer at best and do it internally to control their communication, the level of positioning, and quality.

What is the growth target?

Investing in a category that, by definition, reaches a wider audience, amplifies the offer, and represents a natural access opportunity for our clients.

You have just launched the perfumes of Bottega Veneta. How did you work on this project?

I believe that these five perfumes are an example of a different approach to the sector, which reflects the three fundamental axes on which our work is based. Creativity because it was very important to translate the vision of Mathieu Blazy and the brand, which is a distillation of values. There is the craftsmanship, the link with Venice and its origins, the intertwined translated into the fragrance itself and its ingredients, 100% of natural origin. Craftsmanship finally translates into the glass bottle of Murano, which transforms the object itself into a work of art.

What will be the next brand to be launched?

The second will be Balenciaga, whose previous license has expired. It is scheduled to launch next year.

Creed was the first acquisition. What led you to this choice?

At the beginning of the adventure, it was necessary to understand how to develop the division, and therefore it was important to start from the high perfumery sector for several reasons. The first is because it is the sector that grows the most; today it is much stronger than prestige because it creates desirability and, in addition, because it is the best way to translate the vision of the fashion houses of the group.

I also wanted to start quickly, and to do it we needed a structure, so we looked for the brand that was the most emblematic, the most beautiful on the market, and also the largest and still independent. So the choice fell on Creed, which is a small bijoux. There is no other brand of this size that has its own production, that seeks and procures the ingredients in an autonomous way, and that boasts this centenary history. It is an exceptional reality from all points of view, in terms of quality, sourcing, how fragrances are made, the need for productivity, plus with still a great unexpressed potential.

What are your plans for the brand?

Since the brand is primarily focused on men, the objective is to double the brand's leadership in the men's category while increasing market share in the women's fragrances category. In markets like China and through channels like travel retail, there is a great deal of potential for the development of home and body products as well as for geographical diversification.

What do you see in the future of Kering beauté?
The goals are high when starting a division. We will take as much time as necessary because, obviously, the creation process for beauty takes a lot longer than for fashion. I see Creed's growth as having a lot of potential, and we'll keep growing the brands in our portfolio after that. As I mentioned, Balenciaga will debut next year. (all rights reserved)