Designer Tom Ford created his own brand in 2005 and now Estee Lauder agreed to acquire his whole company.
👉 Background: Tom Ford is a designer who made his name as the creative director of all things Gucci in the 90’s. And during that time, the business grew in value by nearly 15x.
👉 What happened: In 2005, he went off and created his own brand with the original name “Tom Ford”. And now, Estee Lauder has agreed to acquire his whole company for $2.8 billion USD.
👉 What else: The interesting part is they’re most keen on the Tom Ford Beauty business…which includes fragrances, cosmetics and skincare, because perfumes have become a priority for Estee Lauder since the pandemic.
💡Perfume is becoming a new cash-cow for the luxury market. They are sticky, high margin …and the appeal is not season specific.
💡And despite the pandemic, the premium fragrance industry saw a huge bump. Tom Ford saw its revenue jump by nearly 25 per cent.
💡So Estee Lauder is hoping Tom Ford perfumes become a lifetime-long-love for its customers.
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