How Did P&G Merge the Acquisition of the Core Competitiveness

Many people do not know, Procter & Gamble (i.e. P&G) is also a perfume business. P&G stepping into the perfume business area is a very interesting story.

In the early 1990s, P&G purchased Maxfactor and its businesses. Maxfactor is a mainstream U.S. make-up brand, at which time P & G felt it could expand Maxfactor into a global brand. The acquisition also included two smaller businesses. One is the classic skin care brand SKII, about 30 million US dollars, as well as three or four small perfume business, about 30 million US dollars in total.

SKII later grew to a scale of $1 billion. But except for this, P&G’s high-end perfume business has grown from $30 million to more than $3 billion and, more importantly, perfume business has become P&G’s core competencies.

How did P&G make this?

Our view of success is different. Although P&G has built leading brands such as HUGO BOSS, Dolce & Gabbana, Gucci and other men’s or women’s fragrances, it does not think the success of the fragrance business is only that. Instead, P&G treat this as an extremely important part of P&G home care and personal care architecture.

As a result, P&G decided to become a world-class investor in the fragrance business. While investing, it also produces its own fragrances and works with the world’s top fragrance designers to take the lead in the fragrance business. As a result, P&G can learn as much as possible about the perfume knowledge, experience, and apply it to P & G’s other home care and personal care products.

Reference:

See all of the P&G’s fragrance acquisitions and divestures 1990–2015: http://www.basenotes.net/features/3165-all-of-procter-and-gambles-fragrance-acquisitions-and-divestures-1990-2015