Shiseido Group has acquired the exclusive worldwide licence to develop, market, and distribute Tory Burch beauty brands under the terms of a new partnership, effective 1 January 2020.
The Tory Burch licence will be managed by Shiseido Group’s Americas region, headquartered in New York City.
The long-term alliance will see Shiseido invest in Tory Burch’s beauty business in order to elevate the brand on a global scale. Under the agreement, Shiseido will provide Tory Burch with dedicated resources to capture new multi-platform growth opportunities. It will also create cross-collaboration opportunities across Shiseido’s Centres of Excellence in fragrance, makeup, skincare, digital, and Technology Acceleration Hub.
Shiseido Group President and CEO Masahiko Uotani said: “Shiseido is dedicated to creating value for all of its partners and we are excited to share the benefits of Shiseido’s platform, R&D resources, technology portfolio, and Centres of Excellence with the Tory Burch brand to help maximise its significant potential and opportunities for growth and development.”
“We are honoured to welcome Tory and the Tory Burch brand to the Shiseido family and pursue this mission together as partners. Tory Burch is a truly luxurious lifestyle brand with a clear identity and strong commitment to its values — exactly the type of innovative partner we seek to enhance our portfolio as we continue to find new ways of cultivating consumer engagement and bringing value to our business and to society,” Uotani added.
Tory Burch’s beauty business began in 2013 with the launch of the first Tory Burch fragrance, which is available in Tory Burch boutiques and luxury retailers worldwide.
Executive Chairman and Chief Creative Officer Tory Burch said that the partnership is the “realisation of a long-time dream”.
She added: “We are thrilled to be partnering with Shiseido, a company I have always admired for its rich history, unparalleled products, and dedication to innovation. There are great synergies between our companies, including a deep respect and connection to our customers, a passion to support women’s empowerment, and an aligned long-term strategic vision.”
The sentiment was echoed by Tory Burch CEO Pierre-Yves Roussel, who said: “We are proud of what we have accomplished with our family of fragrances to date and we are extremely honoured to move the business forward with this new strategic partnership. Shiseido is an influential global leader setting the highest standard of excellence in the industry. We look forward to working with them to drive the next phase of development and expansion for Tory Burch Beauty.”
The new partnership is part of Shiseido Group’s wider expansion strategy that leverages the company’s global platform and resources to develop its brand portfolio. Prestige brands have been a strong driver for Shiseido Group’s stellar growth in recent years, so the acquisition of Tory Burch’s beauty licence makes strong strategic sense.
Last year, Shiseido Group’s net sales grew by +8.9% (+14% organic) to a record ¥1,094.8 billion (US$10.1 billion) while operating profit rocketed +34.7%, surpassing ¥100 billion (US$926 million) for the first time, with Shiseido, Clé de Peau Beauté, Ípsa, Laura Mercier, NARS, Dolce & Gabbana, Elixir and Anessa accounting for 90% of total incremental growth.
According to Shiseido Americas CEO and Chief Growth Officer Marc Rey, the partnership is a testament to the mutual respect and shared vision between the two companies.
He said: “Tory Burch is a powerhouse fashion brand that shares many of the same values as Shiseido, and we’re thrilled to be in partnership together. There’s a tremendous opportunity to grow the Tory Burch business, and Shiseido is honoured to provide Tory Burch with the resources to do so.”
“By combining Tory’s beloved vision and the brand’s future-forward approach to digital, with Shiseido’s global platform and expertise in beauty and technology, this partnership has the ability to connect even more deeply with consumers and unleash the brand’s full potential,” he conintued.
“We are especially proud to partner with Tory, who sets an example for us all as a visionary, entrepreneur and an advocate for women’s empowerment, and we look forward to working closely with the broader team,” he added.
(Source: Moodie Davitt Report)