After Kering made a big song and dance about establishing its Beauté division in 2023 and doubling down on the segment, the French luxury giant has called time on its beauty ambitions.
The luxury player sold its beauty division to conglomerate L’Oréal for a casual €4bn on 20 October, describing the move as a “long-term strategic partnership”.
In actual terms, this means L’Oréal is set to engulf Kering’s fragrance lines, such as House of Creed and the beauty and fragrance licenses of Houses of Kering.
The Maybelline-owner is also set to take the helm in pursuing new opportunities in the field of wellness and longevity as part of the deal.
But an aspect less shouted about by both beauty conglomerates is the fact that the sale includes the rights to enter into a 50-year exclusive license for the creation, development, and distribution of fragrance and beauty products for fashion house Gucci.
Gucci’s beauty licence is currently owned by fellow luxury giant Coty, raising questions around what happens next when this licence expires.
L’Oréal’s takeover of the beauty industry seems unstoppable at this stage, with the beauty behemoth having already snapped up vitamin A-focused skin care brand Medik8 and hair care player Color Wow this year.
But how exactly will this new monolithic deal fuel L’Oréal’s beauty ambitions, and what impact will it leave on an industry being increasingly controlled by only a handful of luxury giants?
Not yet a Subscriber?
This is a small extract of the full article which is available ONLY to premium content subscribers. Click below to get premium content on Cosmetics Business.
Subscribe now Already a subscriber? Sign in here.