Shiseido, Dolce & Gabbana put partial end to their licence agreement
Japanese cosmetics group Shiseido and Italian luxury label Dolce & Gabbana are putting a partial end to the licence agreement they inked in October 2016 to develop skincare, make-up and fragrance lines. The contract modification is expected to be effective from December 31 2021 for all product categories and all markets except France.
Shiseido and Beauté Prestige International (BPI), the Paris-based Shiseido subsidiary that runs the group’s perfume business, indicated that the French licence termination is still under discussion, as requested by Dolce & Gabbana.
“Beauté Prestige International is currently assessing a proposal by Dolce & Gabbana to terminate the licence activity in France by the end of the year, and to continue to produce and distribute Dolce & Gabbana Beauty products worldwide for a minimum period of twelve months from January 1 2022,” said the Shiseido group in a press release, underlining that consultations with BPI employees are under way.
The change of direction would allow Shiseido to continue its reorganisation, with a view to eventually jettisoning its fragrance business. The Japanese group recently unveiled its 2021-2023 strategic plan, notably designed to refocus the group’s attention on the skincare segment, which is expected to account for 80% of Shiseido’s sales within the next two years. According to Women’s Wear Daily, Shiseido is even envisaging parting ways with make-up brands like Laura Mercier and Bare Minerals.
Shiseido’s 2020 results have been severely affected by the crisis, and in February the group signed an agreement to cede its mass-market beauty and personal care businesses to the CVC investment fund, transferring assets worth JPY160 billion (€1.3 billion).
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