Retail Beauty recently reported that the Estee Lauder Companies (ELC) were the main frontrunners to buy the Tom Ford fashion label for US$3 billion.
Rumours are also swirling that the multinational is in talks with Balmain to create a beauty range for the luxury French fashion house.
There’s a lot of corporate and financial muscle behind Balmain. Mayhoola Investments, the leading investment company from Qatar, acquired the luxe brand in 2016 for US$548 million.
Mayhoola also bought Valentino, the luxury Italian fashion label, in 2012 for US$850 million and wholly owns Pal Zileri, the upmarket Italian menswear brand.
A Balmain beauty license would probably follow the trajectory ELC used to develop Tom Ford Beauty. The first Tom Ford fragrance, Black Orchid, launched in 2006 and was followed by makeup and skincare ranges.
Balmain significantly revived its fortunes in 2011 when Olivier Rousteing was appointed as creative director. Vintage pieces from the heritage maison founded in the 1940s by namesake designer, Pierre Balmain, are also highly sought-after on the celebrity circuit.
Balmain has a long history in fragrance. Its first juice – Elysees 64-83 – premiered in 1945 and was followed by the legendary Vent Vert two years later. The brand’s Jolie Madame was one of the blockbuster scents of the 1950s and Revlon took on Balmain’s license in 1960.
A major fragrance comeback was attempted in 2012 when Inter Parfums acquired the Balmain license. But the agreement was terminated in 2017 following the release of new and revamped juices such as Extatic and Ivoire.
Last year, Balmain appointed a new president for Greater China, its second largest market after the US, to fast-track growth.
China has been key to the global success of Gucci Beauty with flagship stores on Tmall Luxury and in Hainan duty-free. Chanel, YSL Beauty and Christian Dior beauty products also do very well in China and a Balmain beauty range would boost the overall luxe beauty sector.
Estee Lauder has shed some of its designer fragrance brands in recent years, including Donna Karan, DKNY, Tommy Hilfiger and Tory Burch to concentrate on its niche brands such as Le Labo and Editions de Parfum Frederic Malle. Balmain would fit in well with Michael Kors and the recent luxury fragrance collection launched under the core Estee Lauder brand.