The deal is set to "cement Etro’s position across established markets and categories" as the brand's new market presence expands. Image credit: Etro
Italian fashion house Etro is handing over a portion of its portfolio to U.S. beauty group Coty.
The pair have formed a strategic licensing agreement that places the holding company in charge of the heritage brand's fragrances and home scents. Breaking into additional categories by way of the collaboration, Etro's product lines will be produced by Coty until at least 2040.
"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," said Sue Nabi, CEO of Coty, in a statement.
“Etro is an iconic brand with a long-standing heritage of excellence that is reflected across every facet of its business," Ms. Nabi said. "This agreement further underscores Coty’s focus on fashion driven licenses with significant multi category potential which resonate with consumers in our key markets."
Etro enters new markets
Ms. Nabi's team is taking on the responsibility of selling Etro's his, hers and home signatures long-term. Paisley and Shantung, two bestselling SKUs, are included.
Opportunities to leverage the L Catterton affiliate's (see story) heritage identity and high-end appeal remain at the core of Coty's latest signing. Besides existing offers, the development of new beauty collections is also on the table.
The titleholder's efforts are advantaged by a global distribution footprint and a track record of garnering sales for established industry players (see story).
“This partnership with Coty marks another invigorating chapter for Etro as we continue to bolster the evolution of our beauty portfolio," said Fabrizio Cardinali, CEO of Etro, in a statement.
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"The collaboration will enable us to leverage synergies between our companies while taking advantage of Coty’s expertise and industry leading capabilities," Mr. Cardinali said. "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.”
Coty continues to align with luxury names in pursuit of expansion.
Sharing a similarly high-profile fashion licensing update recently, the prestige professionals cemented a deal with Italian fashion label Marni earlier this month (see story).