The high-end beauty category will welcome new members with the entry of Richemont

Following in the footsteps of the luxury conglomerate Kering from France – the giant that established the Kering Beauté division and acquired the high-end fragrance brand Creed earlier this year – Richemont is the latest conglomerate to venture into the rapidly growing high-end fragrance market.

Richemont forms new beauty division to scale up fragrances | Vogue Business The Pasha de Cartier fragrance from Richemont’s Cartier brand was launched in 2020 The new division of the conglomerate from Switzerland – Labouratoire de Haute Parfumerie et Beauté – is led by industry veteran Boet Brinkgreve, who is also the former head of procurement and ingredients at fragrance manufacturer DSM-Firmenich. Brinkgreve brings thirty years of experience in the industry and a deep understanding of the Chinese market. From 2015 to 2017, he led the ingredients division in China for DSM-Firmenich.

Richemont launches new beauty division, doubling down on high-end fragrance | Jing Daily Boet Brinkgreve, who will take on the role of Director for the new portfolio The new director assumed this role on September 1 and reports directly to Richemont Group Chairman Johann Rupert. Rupert stated that he has been tasked with expanding the fragrance business across six brands, including Montblanc, Van Cleef & Arpels, Cartier, Dunhill, Alaïa, and Chloé, to achieve “significant market share in this highly competitive field.” This news caused Interparfums’ stock, the manufacturer of fragrances for three brands under the conglomerate, to drop by 9.4%. Both the Van Cleef and Montblanc brands contributed 30% of Interparfums’ revenue last year. Coty, the fragrance manufacturer for Chloé, is also facing threats that could affect its stock.

The Moonlight Rose fragrance from the Van Cleef & Arpels brand was launched in 2023 However, according to BeautyMatter, the establishment of the new division does not mean that Richemont will solely operate the fragrance business but rather maximize the potential of this investment portfolio. It is noteworthy that all three fashion giants in the world’s largest fashion portfolios – LVMH, Richemont, and Kering – have established independent beauty and fragrance divisions.

In April of this year, LVMH Group appointed Stephane Rinderknech, former CEO of L’Oréal China, as the CEO of the fragrance and cosmetics division, and announced Veronique Courtois as the CEO of Dior fragrances and former Make Up For Ever director Gabrielle Saint-Genis Rodriguez to take on the role of CEO at Guerlain.

Following the restructuring, revenue from LVMH’s cosmetics and fragrance division reached a superior level of $4.3 billion in the first half of this year, up 13% compared to the same period last year. The countries contributing to this revenue include the Asia-Pacific region (excluding Japan), accounting for 34%, significantly higher than Europe and North America. In June of this year, Kering Beauté signed an agreement to acquire the high-end niche fragrance brand Creed. According to Reuters, the all-cash transaction could be worth up to $2.1 billion.

Kering buys luxury fragrance house Creed for new beauty division Kering acquired the luxury fragrance brand Creed to pave the way for future plans It seems that the playground of the high-end beauty industry will become more lively and competitive than ever with the entry of large conglomerates from France and Switzerland. According to Euromonitor International, the global beauty and personal care market will reach $547 billion by 2027, with the Asia-Pacific region, where China will be the main market, accounting for 67% of total growth.

Perfumes & Cosmetics in grace – LVMH Yet, LVMH has had a longer journey than its equally prestigious competitors who have just entered the game.