Last thursday, Giant Procter & Gamble announced the renewal of their current licensing agreement for the worldwide production, sale and distribution of fine fragrances under the Gucci brand. Yes, behind the scenes of the Gucci beauty brand sits the giant of Marketing: P&G. In deed the international group bought Gucci beauty brand in June 2006 under a license contract. P&G that already possessed Hugo Boss, Lacoste and Jean Patou, added in 2006 Gucci, Valentino (sold after a couple of trials), Dolce & Gabbana…. The group becomes one of the biggest competitor for L’Oréal and LVMH.
Since June 2006, P&G announced their extreme satisfaction on the Gucci Business. Mr Luigi Feola, current CEO of P&G Prestige, declared to WWD that they have tripled Gucci beauty turnover. Experts say the total Gucci beauty business might be around 500 to 600 million $ in the retail sales worldwide. The new agreement relates to fragrance development and distribution but also Make up and skin care. Is P&G thinking about a luxury skincare line by Gucci? Wait and see. LA
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