What will it take to compete in the beauty landscape post L’Oréal-Kering Beauty deal?

The 4-billion-euro strategic partnership extending into luxury beauty and wellness, announced on Oct. 19, has completely shape-shifted the industry, especially for strategics relying heavily on fragrance to buoy their business. But its impact is more far-reaching than just for that category.

“This L’Oréal deal has completely changed the power play,” said Nnenna Onuba, founder of 100 Allies and an M&A strategist, formerly of Rothschilds. “There is going to be downward pressure on all of the sector. It’s going to flow to retailers, investors, founders — everyone’s going to feel the weight of this.”