LEtoile snaps up John Galliano

LEtoile, Russia’s largest perfume and cosmetics chain, has invited British fashion designerJohn Gallianoto become a new Creative Director of the company. It is expected that the contract will be officially signed on 22 May.

Among Galliano’s main responsibilities will be the development of L’Etoile’s own line of cosmetic products. According to sources in L’Etoile, Galliano will not be involved in the operational management of the company, but will focus part-time on the design of new cosmetic lines, which will allow the designer to continue work on his other projects.

LEtoile has big hopes for its cooperation with Galliano, believing it will strengthen its position in the private-label segment, which remains very profitable in Russia – the gross margin being 1.5-2 times higher than that of branded cosmetic products. In addition, the company believes that it will lead to further expansion in both the domestic and foreign markets through the opening of new stores.

This will be Galliano’s second foray into the cosmetics business. In 2007 he signed a seven-year contract with perfume company Selective Beauty and presented his own fragrance line in 2008.

At present LEtoile, which is managed by parent company Alcor & Co, has more than 812 stores, operated both under the LEtoile and Bon Joli brands. Alcor & Co is the largest perfumery and cosmetic operator in Russia.

L’Etoiles revenue in 2013, according to Infoline-Analysis, one of Russia’s leading financial market analysts, was Russian ruble RUB56bn (US$1.8bn).