The launch of new company Dolce & Gabbana Beauty follows the conclusion of its licensing deal with Shiseido in December 2021 | Source: Dolce & Gabbana

Inside Dolce & Gabbana’s Plan to Take Beauty In-House

The Italian house is in the process of establishing a new business, Dolce & Gabbana Beauty, which by January 2023 will assume 100 per cent control of the manufacturing, sales and distribution of its fragrance and makeup products — a €1 billion business, according to the company.

According to Reuters, chief executive Alfonso Dolce said Monday’s announcement is part of a “long-term strategy which sees us committed to consolidating, cultivating and promoting Italian artisanal and manufacturing excellence.”

Dolce & Gabbana’s decision to shift to direct operations follows the termination of its licensing agreement with beauty giant, Shiseido. However, Shiseido will continue to produce Dolce & Gabbana’s products until the end of the year.

Through taking its cosmetics and fragrances in-house, Dolce & Gabbana will reportedly employ around 130 to 150 people in Italy by March 2023, and a further 100 to 120 overseas.

The group plans to launch with a capital of around A$320 to A$400 million with the goal of doubling if not tripling its market share in the perfume sector while strengthening its position in cosmetics, according to Reuters.

Former LVMH executive, Gianluca Toniolo is set to assume CEO of Dolce’s beauty business. In an article in the Financial Times, Toniolo said the beauty arm has plans to launch “very rare, Italian-quality” fragrances, expand its colour range and launch skincare products.

The move sees Dolce & Gabbana join the likes of Chanel and LVMH in their strategy to keep beauty in-house, while many other fashion houses continue to maintain their beauty businesses through licensing agreements.

Experts say Dolce & Gabbana’s move could pave a new route for brands as they take closer control of their retail and distribution channels, leading to strong relationships with customers and higher margins.

In the last financial year, Dolce & Gabbana reportedly made around A$1.6 billion, down from its pre-pandemic revenue of around A$2 billion.

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