Puig Group pushes the Rabanne brand toward diversification

Following the collaboration with Zalando that began in the spring of 2023, the Rabanne fashion house, owned by the Spanish Puig Group, has entered into a new partnership with another fast-fashion giant, H&M. Together, they will unveil a capsule collection that includes fashion pieces as well as items for interior decoration. The collection is the result of creative work by Julien Dossena, a stylist at Paco Rabanne for ten years, and Ann-Sofie Johansson, H&M's Head of Design and Creative Director. The collection launch event took place a few days ago at Silencio, the exclusive club created by director David Lynch in the heart of Paris, attended by several celebrities, including singer Cher and actor Jared Leto.

The Puig Group, which also owns renowned brands such as Carolina Herrera, Nina Ricci, and Dries Van Noten, saw its revenue grow by 40% in 2022, reaching 3.6 billion euros, resulting in a net profit of 400 million euros, an increase of 71%. This has provided a boost to the business and commercial expansion of its labels, including Paco Rabanne, which was renamed simply Rabanne in June of the past year. For example, Paco Rabanne perfumes have seen tremendous growth in global sales, with the fragrance 1 Million being the fifth best-selling perfume at Sephora last year. Recently, Rabanne expanded its horizons by launching its first makeup collection. Initially introduced online at the end of August and then through a selected network of boutiques, Rabanne Makeup was officially presented during the latest Paris Fashion Week, coinciding with the brand's first appearance under its simplified name.

Puig now aims for an annual revenue of 4.5 billion euros within two years. Rabanne's interest in partnering with major affordable retailers like H&M is to leverage greater expertise in e-commerce and gain a deeper understanding of the mass-market retail landscape. These assets could certainly help the brand reach a younger audience by expanding its product offering and price range. It's difficult to say at this point whether this strategy will prove positive or detrimental to its brand image. However, democratizing luxury is a stated goal of the Swedish giant H&M, which has, in recent years, pursued collaborations with prestigious brands such as Versace and Balmain.