Luxury Brands Might Think Twice Before Buying Back Their Beauty Lines

In search of greater ownership — both of image and revenues — more fashion houses are wresting back control of their beauty licences. But running a beauty business can stretch otherwise well-resourced, powerful companies beyond their capabilities.


KEY INSIGHTS:
Licensing has long been the de-facto beauty model for luxury brands, but some are bringing the category back in-house.
Running a beauty business is a different beast from fashion, requiring companies to gain – or hire – expertise in formulation, regulation, product development and distribution.
Companies biting the bullet must be clear that start-up costs will be high, and the long-term pay-off is uncertain.