Kering, the Paris-based luxury company, announces the creation of a division Beautyof which Raffaella Cornaggia will be the CEO
Il global luxury giant Kering announced the creation of its own Beauty division for the development of cosmetics and perfumesstrategic sector, which he appoints as head of this division Raffaella Cornaggia former executive of direct competitor Estée Lauder.
“The creation of Kering Beauté” will allow a Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato and Qeelin to develop the beauty products sector, “which we identify as strategic” and “which constitutes a natural extension of their universe”, they explain in a statement.
The Italian Raffaella Cornaggi she was, as of 2020, the senior vice president and international general manager of the Estée Lauder and Aerin brands, where she led the global business outside the United States and Canada.
The Italian manager started her career in L’Orealholding various positions for more than nine years before joining Chanel Perfume Beauty and then, in 2008, in the group Estee Lauderthe second largest cosmetics company in the world after L’Oréal.
With the new division Beauty“we are building this new know-how within the group to enable our brands to reach their full potential in this category,” he commented Jean-Francois Palusdeputy general manager of Kering and right-hand man of the CEO Francois-Henri Pinault.
This division does not include the Gucci brand, nor Yves Saint Laurent (YSL). The license for the beauty activities of Gucci, flagship of the Kering group, is in fact in the portfolio of the American group Coty “for at least 5 years”, according to analysts at RBC Capital Markets.
As for the YSL brand, the beauty product license is held by L’Oréal.
The new division “should allow Kering” to have “the necessary time to build and develop these businesses internally with smaller brands” before coming to represent, in the long term, an alternative to regain control of the perfumes and cosmetics of the Gucci brand when the licensing deal granted to Coty expires, analysts say.
In the short term, however, the effect on the results will be “probably not significant”.
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