Fragrance market revamps: Coty renews license with Hugo Boss, Lacoste moves to Inter Parfums
21 Dec 2022 --- Coty has announced the renewal of its license agreement with Hugo Boss, extending the partnership beyond 2035 for all Boss and Hugo fragrances for men and women. Additionally, the company sold its fragrance license with Lacoste back to the brand after a mutual agreement.
Lacoste has signed a 15-year fragrance license agreement with Inter Parfums, effective from the beginning of 2024.
Following the Hugo Boss license renewal, which includes no material changes in licensing terms, Coty has no sizable license open for renewal in the next six years. The average remaining duration of Coty’s top six licenses – which account for over 80% of Coty’s prestige fragrance business – is approximately ten years.
“Our Claim 5 growth strategy is broad-based. We want to grow across all regions, touchpoints and brands, as well as in all product areas,” says Daniel Grieder, CEO at Hugo Boss.
“We are convinced that we have the right partner at our side to exploit the full potential of Boss and Hugo in the global fragrance business.”
Sue Y. Nabi, CEO at Coty, adds: “This long-term extension is in line with Coty’s strategic objective to focus on key brands which can become global powerhouses while driving a balanced growth agenda across our fragrance portfolio.”
Lacoste and Inter Parfum announced the launch of its first perfume line is scheduled for 2024.Regarding the Lacoste sale, Nabi says Lacoste fragrances continue to have outstanding potential. “For Coty and Lacoste, the exit by the end of CY23 represents our respective yet mutually beneficial priorities.”
“This sale advances Coty’s strategic objectives by enabling Coty to further focus on our largest fragrance licenses while accelerating our deleveraging agenda through the sales proceeds,” she continues.
Lacoste-Inter Parfums partnership
The agreement between Paris-based subsidiary Interparfums SA and fashion sports brand Lacoste was signed with an entrance fee of €90 million (US$95.5 million).
Interparfums will be responsible for the creation, development, production and marketing of all perfume and cosmetics lines under the Lacoste brand, in selective distribution as well as in the boutique network.
The launch of the first new perfume line is scheduled for 2024.
“Interparfums’ proven know-how and creativity will be critical assets to continue the development of our fragrance category, which plays a significant role in Lacoste’s reputation. Our shared vision will enable us to take an approach that is increasingly in line with the brand’s strong identity codes, whose fragrances still have great potential,” states Thierry Guibert, president at Lacoste.
Jean Madar, chairman and CEO at Inter Parfums, adds: “Lacoste is an emblematic brand in the world of fashion and sport with a very high level of awareness and desirability throughout the world.”
“The management team has a clear and precise vision of the brand’s great development potential, allowing us to take the perfumes higher and further. This is an important new strategic step in the life of Interparfums,” he continues.
The Hugo Boss and Coty partnership began in 2016 and has now been extended beyond 2035.
Plans for Hugo Boss
Hugo Boss aspires to claim a leading global role in men’s fragrances and will emphasize the US market in the coming years.
The future joint developments will complement the Boss Bottled range and reflect the “Be Your Own Boss” brand platform. In addition, Hugo Boss plans to expand its share of Boss women’s fragrances in key European markets and lay the foundation for this segment to grow into the US market.
Another strategic focus area is strengthening the top of the brand’s fragrance range, Boss The Collection. This expansion will specifically enhance the relevance of Boss in specialty markets such as the Middle East and China.
The existing offering for men and women under the Hugo brand will also be reinvented to sharpen the focus on young target groups, including Gen Z, and to reflect the brand’s new Hugo Your Way platform entirely.
Edited by Radhika Sikaria
