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Agenda-setting intelligence, analysis and advice for the global fashion community.

How Kiko Milano Built Pricing Power

The Italian cosmetics giant has deftly engineered a premiumisation strategy, and has elevated its distribution, product selection and points of differentiation, heavily reducing discounts and promotions in the process. Chief executive Simone Dominici explained how it deployed its strategy in The State of Fashion: Beauty Volume 2.
SoF Beauty Lead
Kiko Milano chief executive Simone Dominici is the mastermind behind its strategy. (Kiko Milano)

Across the income spectrum, one thing unites all shoppers: everybody likes to feel that they got value for money. While macroeconomic shifts will increase wealth in concentrated pockets, the next five years could also see wealth decline in lower- and middle-income households. Wealthy customers will have more brands vying for their spend, while lower-income customers will want to make every penny count. Perceptions of value will become deciding factors for shoppers.

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Further Reading

The State of Fashion: Beauty Report — Solving the Growth Puzzle

Beauty’s era of effortless growth is giving way to a more complex landscape. Download the second volume of BoF and McKinsey & Company’s industry report to learn how to navigate evolving consumer expectations, market deceleration and regional volatility in the years ahead.

About the author
Daniela Morosini
Daniela Morosini

Daniela Morosini is Senior Beauty Correspondent and Special Projects Editor at The Business of Beauty at BoF. She covers the global beauty industry, with an interest in how companies go to market and overcome hurdles.

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