Dive Brief:
- Coty Inc. and luxury fashion house Etro have signed a new license agreement for signature fragrance and home scents, according to a Tuesday press release.
- The deal will create a long-term partnership between the two companies planned to extend beyond 2040, per the release. According to the terms of the arrangement, Coty will “assume the development, production, and distribution of all Etro perfumes and fragrances” including Etro’s signature fragrance lines, such as Shantung and Paisley.
- Earlier this month, Coty announced that it has entered into a 20-year license deal with OTB-owned luxury fashion brand Marni for the development, production and global distribution of beauty and fragrance products. In 2023, Coty also signed a 10-year extension of its partnership with OTB-owned Jil Sander.
Dive Insight:
Coty’s beauty licenses also include fragrance deals with Hugo Boss, Calvin Klein, Gucci and Chloé, plus LVMH-owned brands Tiffany & Co. and Marc Jacobs. With the new license for Etro, the fragrance giant is delving even further into the prestige cosmetics market as consumer demand for luxury goods remains unstable.
Coty and Etro will “work together to explore new categories and innovations to grow the brand’s beauty portfolio,” per the release.
“We are delighted to announce our new alliance with Etro, an Italian luxury fashion house that is renowned for its timeless designs and relentless focus on quality,” Sue Nabi, Coty’s CEO, said in the press release. “Etro is an iconic brand with a long-standing heritage of excellence that is reflected across every facet of its business. This agreement further underscores Coty’s focus on fashion driven licenses with significant multi category potential which resonate with consumers in our key markets. We are excited to collaborate with Etro, building on the brand’s existing beauty offering and bringing its unique brand identity to life through new categories and launches.”
The deal also marks a continuing category exploration for Etro, which sold a majority stake of its company to LVMH-backed private equity firm L Catterton in 2021. Prior to the Coty license, Etro developed all its fragrances in-house, per WWD, who also reported that the Italy-based fashion firm was releasing a new partnership with luxury legwear brand Wolford during Milan Fashion Week.
“This partnership with Coty marks another invigorating chapter for Etro as we continue to bolster the evolution of our beauty portfolio,” Fabrizio Cardinali, Etro’s CEO, said in the release. “The collaboration will enable us to leverage synergies between our companies while taking advantage of Coty’s expertise and industry leading capabilities. We are looking forward to working with the Coty team to explore ways of developing our beauty presence in a way which is authentic to Etro, further strengthening our ability to meet the dynamic, and ever-evolving demands of our consumer across different markets.”
