Richemont established a high perfumery and beauty division
By Eva Morletto07 septembre 2023
Swiss group Richemont is creating a new division dedicated to perfumes and beauty products, a trend that is strengthening across all major luxury conglomerates.
After acquiring the prestigious Italian shoe house Gianvito Rossi, Richemont is continuing its strategic considerations toward the highly promising cosmetics sector. In a statement, Richemont's management explained that 'the new High Perfumery and Beauty Laboratory has been created to enable our six houses already involved in perfumery to achieve critical mass in this highly competitive field.' These statements, along with the appointment of Boet Brinkgreve as the head of the new division, have sparked significant stock market reactions.
Notably, shares of Interparfums fell by nearly 9% yesterday afternoon. This movement is attributed to concerns that Richemont may reconsider the licenses granted to the French group for the production of its fragrances. This is a threat to Interparfums, which currently manages several licenses granted by Richemont, including those of Van Cleef & Arpels and Montblanc. They accounted for 29% of Interparfums' revenue last year (3% and 26% respectively). However, the Montblanc license is renewed until 2030, which should help stabilize stock market movements in the coming days.
Boet Brinkgreve, formerly the head of the Swiss group Firmenich, specializing in creating perfumes for leading French and international brands, will lead the new division. This appointment was accompanied by other announcements, including Swen Grundmann, formerly the company's secretary-general, being appointed as the group's director of corporate affairs.
In a fragile geopolitical context and during a period characterized by profound changes in the luxury industry, Richemont's strategy highlights the vital and indispensable need for innovation in all business sectors.
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