Licensing in Cosmetics: A Practical Approach

Abstract

Only a very scarce amount of information is available on the licensing practice in cosmetics. The present paper proposes an approach to structure a license in cosmetics taking into account the wide diversity of products, markets and distribution channels characterizing this field. In particular, a methodology to extract the value from an in-license technology and how such a value contributes to the final product cost structure is presented. Finally, the impact of future challenges, such as sustainable development or product digitalization, on the licensing practice is also discussed.

Keywords: Licensing in Cosmetics; Coty; Procter & Gamble; Shiseido; Johnson & Johnson; Estee Lauder