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The fashion house Dolce & Gabbana, which took the beauty business in-house last year, wants to increase its value from €1 billion to €3 billion in 3 years. This is an ambitious project, but one that could ultimately prove to be very profitable for the company.
Dolce & Gabbana (D&G) plans to dominate the beauty market. Since taking its beauty business in-house, the fashion house has been on a mission to transform the division, which includes fragrance, makeup and skincare.
As a result, Dolce & Gabbana plans to increase the retail sales value of its beauty division from €1 billion to €3 billion (US$3.3 billion) in just three years.
This innovation strategy includes new women’s fragrance pillars, a complete overhaul of its makeup offering, an entry into skincare and the launch of dedicated beauty spaces within existing retail stores.
“My goal is very humble – I want professional immortality”, said Gianluca Toniolo, the new chief operating officer of Dolce & Gabbana Beauty and former managing director of global travel retail at LVMH. “My role is to translate the ideas of Stefano and Domenico [D&G’s founders] into concrete projects that better represent the brand in the beauty category. I want everyone in the industry to remember the moment when D&G Beauty decided to step outside the norm, and who was the leader of that successful project.”
To ring in this new era, D&G unveiled last year that it would move the development, manufacturing and operations of its beauty division in-house at its Milan headquarters. A first in its 38-year history.
Breaking with Shiseido
In 2021, Japanese cosmetics group Shiseido announced its intention to end its licensing agreement with the Italian fashion house, which was contracted in 2016. The Japanese company had said it wanted to focus on its prestige skincare business.
Alfonso Dolce, Dolce & Gabbana’s chief executive and brother of co-founder Domenico Dolce, believes that beauty can be a significantly more important business for the group.
The brand’s beauty business, which has been managed through licenses until now and is worth around 1 billion euros, plans to hire to eventually build a global team of 350 to 500 people.
Superior quality
All major beauty product categories grew in the U.S. in 2021, but none as fast as the fragrance industry. The latter is worth $6.3 billion and has grown 35% from pre-pandemic levels. Moreover, the most expensive products – large bottles, highly concentrated eaux de parfum, artisanal fragrances and designer brand products – are the top performers.
“It’s a very healthy and exciting market they’re getting into”, said Larissa Jensen, beauty industry consultant at the NPD Market Research Group. “For the first time in history, the fragrance category is now the same size as the skincare category.”
According to Gianluca Toniolo, Dolce & Gabbana, which derives 95 percent of its revenue from beauty and fragrance, is therefore well prepared for expansion.
The company plans to introduce “very rare, Italian quality” fragrances, with new launches costing about 50 percent more than the brand’s perfumes currently on the market. “We need to go into the very high-end”, he added.
Ambitious project
Fashion and luxury brands have been part of the beauty market since Chanel launched its first fragrance in 1921. However, they remain small players, compared to industry leaders such as L’Oréal and Unilever.
Only a handful of fashion brands, including Chanel and Dior, manage the manufacturing and distribution of their beauty products. The vast majority of them license their names to third-party specialists such as the French company Interparfums, the American company Coty or the Spanish company Puig.
Taking a beauty business in-house can be costly and complex. Burberry briefly took over its beauty business in 2013, shortly before the departure of then-CEO Angela Ahrendts, but reached a licensing agreement with Coty in 2017.
Until that happens, Dolce & Gabbana also plans to expand its color cosmetics line and move into skin care. However, Gianluca Toniolo said it would avoid certain categories such as anti-aging products because it is “not a technology company like Estée Lauder or Shiseido.”
Estée Lauder is particularly focused on the development of its fragrance offer, whether it be the prestige fragrances developed in 2021 or through the Tom Ford Beauty brand, acquired last year. The brand is at the forefront of technology, particularly in terms of solutions based on artificial intelligence. The world’s No. 2 beauty brand is a pioneer in virtual make-up fitting, thanks to a successful partnership with Perfect Corp.
Read also >Dolce & Gabbana enters the real estate business
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The fashion house Dolce & Gabbana, which took the beauty business in-house last year, wants to increase its value from €1 billion to €3 billion in 3 years. This is an ambitious project, but one that could ultimately prove to be very profitable for the company.
Dolce & Gabbana (D&G) plans to dominate the beauty market. Since taking its beauty business in-house, the fashion house has been on a mission to transform the division, which includes fragrance, makeup and skincare.
As a result, Dolce & Gabbana plans to increase the retail sales value of its beauty division from €1 billion to €3 billion (US$3.3 billion) in just three years.
This innovation strategy includes new women’s fragrance pillars, a complete overhaul of its makeup offering, an entry into skincare and the launch of dedicated beauty spaces within existing retail stores.
“My goal is very humble – I want professional immortality”, said Gianluca Toniolo, the new chief operating officer of Dolce & Gabbana Beauty and former managing director of global travel retail at LVMH. “My role is to translate the ideas of Stefano and Domenico [D&G’s founders] into concrete projects that better represent the brand in the beauty category. I want everyone in the industry to remember the moment when D&G Beauty decided to step outside the norm, and who was the leader of that successful project.”
To ring in this new era, D&G unveiled last year that it would move the development, manufacturing and operations of its beauty division in-house at its Milan headquarters. A first in its 38-year history.
Breaking with Shiseido
In 2021, Japanese cosmetics group Shiseido announced its intention to end its licensing agreement with the Italian fashion house, which was contracted in 2016. The Japanese company had said it wanted to focus on its prestige skincare business.
Alfonso Dolce, Dolce & Gabbana’s chief executive and brother of co-founder Domenico Dolce, believes that beauty can be a significantly more important business for the group.
The brand’s beauty business, which has been managed through licenses until now and is worth around 1 billion euros, plans to hire to eventually build a global team of 350 to 500 people.
Superior quality
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The fashion house Dolce & Gabbana, which took the beauty business in-house last year, wants to increase its value from €1 billion to €3 billion in 3 years. This is an ambitious project, but one that could ultimately prove to be very profitable for the company.
Dolce & Gabbana (D&G) plans to dominate the beauty market. Since taking its beauty business in-house, the fashion house has been on a mission to transform the division, which includes fragrance, makeup and skincare.
As a result, Dolce & Gabbana plans to increase the retail sales value of its beauty division from €1 billion to €3 billion (US$3.3 billion) in just three years.
This innovation strategy includes new women’s fragrance pillars, a complete overhaul of its makeup offering, an entry into skincare and the launch of dedicated beauty spaces within existing retail stores.
“My goal is very humble – I want professional immortality”, said Gianluca Toniolo, the new chief operating officer of Dolce & Gabbana Beauty and former managing director of global travel retail at LVMH. “My role is to translate the ideas of Stefano and Domenico [D&G’s founders] into concrete projects that better represent the brand in the beauty category. I want everyone in the industry to remember the moment when D&G Beauty decided to step outside the norm, and who was the leader of that successful project.”
To ring in this new era, D&G unveiled last year that it would move the development, manufacturing and operations of its beauty division in-house at its Milan headquarters. A first in its 38-year history.
Breaking with Shiseido
In 2021, Japanese cosmetics group Shiseido announced its intention to end its licensing agreement with the Italian fashion house, which was contracted in 2016. The Japanese company had said it wanted to focus on its prestige skincare business.
Alfonso Dolce, Dolce & Gabbana’s chief executive and brother of co-founder Domenico Dolce, believes that beauty can be a significantly more important business for the group.
The brand’s beauty business, which has been managed through licenses until now and is worth around 1 billion euros, plans to hire to eventually build a global team of 350 to 500 people.
Superior quality
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