Shiseido and Dolce & Gabbana announced in a joint statement that they have changed their business model with a partial termination of their beauty license agreement subject to closing conditions.
This change, as the result of a strategic agreement between the parties, will be effective on December 31, 2021, for all markets and all activities except for those carried out from France. Currently, Shiseido subsidiary Beauté Prestige International (BPI) headquartered in Paris is considering a continuation of license activities with Dolce & Gabbana within France through the rest of the year. An agreement would also see the production of Dolce & Gabbana beauty products worldwide for a minimum 12-month period, starting in January 2022.
Shiseido and BPI, the entity responsible for the fragrance business of Shiseido Group, entered into the Dolce＆Gabbana license agreement in October 2016. This amicable partial termination decision is in line with Shiseido’s Medium-to-Long-Term Strategy ”WIN 2023 and Beyond.”
Shiseido experienced sales slowdown globally due to the COVID-19 pandemic. In February Shiseido announced it was selling its personal care business, which includes its lower-priced haircare and skincare products, to private equity firm CVC Capital Partners for $1.5 billion and is looking to exit non-core businesses by the end of this year. Last week WWD reported Shiseido was considering selling its North American makeup assets, including Bare Minerals, Laura Mercier, and Buxom. Sales in the Americas dropped 25.7% in 2020.
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