Kering and L’Oréal are entering a long-term strategic partnership in luxury beauty and wellness. This binding agreement encompasses the acquisition of the House of Creed by L’Oréal, the beauty and fragrance licenses of iconic Houses of Kering and an exclusive venture to explore business opportunities in the field of wellness and longevity.  

Building on the success of Yves Saint Laurent Beauté, this alliance further consolidates the long history of collaboration of two global leaders with complementary strengths — iconic luxury brands of Kering and the world-class expertise of L’Oréal in beauty — to accelerate growth and unlock considerable value across high-potential categories.

Under the terms of this agreement, Kering has the right to sell Kering Beauté including the House of Creed to L’Oréal. A true heritage name in haute parfumerie, Creed stands among the leading high-end luxury fragrance Houses, celebrated for its craftsmanship and mastery of rare natural ingredients. As part of L’Oréal Luxe, Creed will be best positioned to accelerate even further its global development across both men’s and women’s markets.

Kering and L’Oréal have entered a €4 billion strategic partnership spanning luxury beauty, fragrance, and wellness.
The deal includes L’Oréal’s acquisition of Creed and 50-year exclusive licences for Gucci, Bottega Veneta, and Balenciaga fragrances.
The alliance aims to accelerate global growth and explore new frontiers in wellness and longevity.

The partnership includes the rights to enter into a 50-year exclusive license for the creation, development, and distribution of fragrance and beauty products for Gucci, commencing after expiration of the current license with Coty, and respecting the Kering group’s obligations as per the existing license agreement. 

Kering will also grant L’Oréal 50-year exclusive licenses for the creation, development, and distribution of fragrance and beauty products for Bottega Veneta and Balenciaga, starting upon closing of the announced transaction.

A strategic committee will be established to ensure coordination between Kering brands and L’Oréal and monitor the progress of our partnership.

The agreement, including the sale of Creed and the establishment of these 50-year licenses on these iconic Houses of Kering, is valued at €4 billion, payable in cash at closing, expected in the first half of 2026. L’Oréal will also pay royalties to Kering for the use of its licensed brands.

Beyond beauty, Kering and L’Oréal are joining forces to explore business opportunities at the intersection of luxury, wellness, and longevity. This exclusive partnership, in the form of a planned 50/50 joint venture, will craft cutting-edge experiences and services combining L’Oréal’s innovation capabilities with Kering’s deep understanding of luxury clients.

“This strategic alliance marks a decisive step for Kering,” declared Luca de Meo, CEO of Kering. “Joining forces with the global leader in beauty, we will accelerate the development of fragrance and cosmetics for our major Houses, allowing them to achieve scale in this category and unlock their immense long-term potential, as did Yves Saint Laurent Beauté under L’Oréal’s stewardship. Together, we will also venture into new frontiers of wellness, combining the unrivalled expertise of L’Oréal with our unique luxury reach. This partnership allows us to focus on what defines us best: the creative power and desirability of our Houses.”

“I am delighted to forge this long-term strategic alliance with one of the world’s most prestigious, creative and visionary luxury groups. This partnership will further solidify our position as the world’s #1 luxury beauty company and allow us to explore new avenues in wellness together.” said Nicolas Hieronimus, CEO L’Oréal Groupe. “The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our reach into new, dynamic segments of luxury beauty. Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market. Gucci, Bottega Veneta and Balenciaga are all exceptional couture brands with enormous potential for growth.”

The agreement is subject to Kering’s obligations under French employment law, with the right for Kering to sell Kering Beauté to L’Oréal and an exclusivity granted to L’Oréal.

Fibre2Fashion News Desk (RKS)

China recently announced allocating 500 billion yuan (~$70.56 billion) through a new policy-based financial instrument.

The China Development Bank, the Export-Import Bank of China and the Agricultural Development Bank of China allocated 250 billion yuan, 100 billion yuan and 150 billion yuan respectively to support construction of projects in key areas and weak links.

China has allocated $70.56 billion through a new policy-based financial instrument.
The China Development Bank, the Export-Import Bank of China and the Agricultural Development Bank of China were the three allocators.
The aim is to back construction of projects and weak links.
A fund was also set up for China’s centrally-administered state-owned enterprises to develop strategic emerging industries.

The move is expected to stimulate over 7 trillion yuan in investment, according to statistics from the policy banks.

The financial instrument prioritises projects in technological innovation, consumption expansion and foreign trade stabilisation, while also supporting initiatives in major economic provinces and private investment projects, according to a state-controlled news agency.

The country also established a fund for its centrally-administered state-owned enterprises (SOEs) to develop strategic emerging industries, raising 51 billion yuan (~$7.2 billion) in its first phase.

The fund was initiated by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council and is managed by China Reform Holdings Corporation Ltd.

Over 10 centrally-administered SOEs have contributed to the fund, including China Mobile, Sinopec and the China National Offshore Oil Corporation.

The fund will invest in fields like new-generation information technology, artificial intelligence, new energy, new materials, high-end equipment, biomedicine and quantum technology.

Fibre2Fashion News Desk (DS)

Longines announced on Friday the opening of its first Soho store, as the Swiss watchmaker expands its retail store footprint in New York City.

Located at 128 Spring Street, the new Longines Soho store spans 1,064 square feet and boasts a contemporary yet elegant design that blends the NYC area’s architecture with the winged hourglass watch brand’s heritage.

For a Big Apple touch, the store incorporates local-inspired materials such as brick walls, reclaimed wood flooring, and cast iron pre-existing elements and design pieces. As for Longines, visitors will also find references to the 193-year old brand’s history, including its love for equestrian sports and its aviation pioneering, as well as its contribution to timekeeping Alpine ski racing.

The new Soho store marks the brand’s third retail store in the U.S. and its second in New York City.

“The opening of our SoHo boutique represents more than an expansion for Longines: it’s a celebration of our deep connection to the United States, a country that has been part of our story since 1845,” said Yannick Jenni, Longines vice president of sales international, who attended the official ribbon cutting of the new store, alongside Brittany Garcia, brand president, U.S. and Caribbean, and celebrity brand ambassador, Jennifer Lawrence.

“This space reflects our timeless dedication to elegance and offers an inspiring setting for clients to discover our watches and experience the world of Longines.”

Last year, Longines opened its second store in London, opting for Covent Garden to expand its presence in the British capital.