Dolce & Gabbana to establish new beauty business worth USD 1.1 Billion
Category: #retail  By Pankaj Singh  Date: 2022-02-08
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Dolce & Gabbana to establish new beauty business worth USD 1.1 Billion

Dolce & Gabbana, the Italian luxury fashion house, has reportedly planned to move its beauty business in-house by establishing Dolce & Gabbana Beauty for nearly €1 billion (USD 1.1 billion). By January 2023, the company will assume complete control of the sales and distribution, manufacturing of its makeup and fragrance products.

Dolce & Gabbana Beauty will be located in Milan under the leadership of Alfonso Dolce, the CEO and President of Dolce & Gabbana and Domenico Dolce’s brother. Gianluca Toniolo will join the new organization as operating Chief Executive Officer.

The announcement initiates the transition of the Italian house’s beauty business from licensed to direct operations. It contradicts the natural disposition of luxury competitors like Valentino, Burberry, Salvatore Ferragamo, Christian Louboutin, Chloé, Prada, and newest entrant Moncler, which has recently established beauty licensing agreements with Coty, L'Oréal, Interparfums, and Puig, giving away much control to them in return for a percentage of annual sales.

According to experts, the move by Dolce & Gabbana could open opportunities for brands as they strive to control their distribution and retail channels, resulting in higher margins and reinforced relationships with customers.

The new company launch follows the end of its licensing agreement with Shiseido in December last year. Since rolling out its first fragrance in 1992, Dolce & Gabbana has produced more than 100 fragrances, including its bestselling The One and Light Blue scents.

In 2009, the brand ventured into makeup, selling £48 (USD 65.04) blushes and £30 (USD 40.65) lipsticks at department stores. Shiseido has produced and sold Dolce & Gabbana branded cosmetics and perfume since 2016.

Following the COVID-19 pandemic, the two firms agreed to partially end their licensing deal in April 2021 under the Japanese group’s cost-cutting measures. For Dolce & Gabbana, the move is a crucial step in the current development of the assets, responsibilities, and skills of the brand.

Source credit:

https://www.voguebusiness.com/beauty/inside-dolce-and-gabbanas-plan-for-its-1-billion-beauty-business



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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