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Hugo Boss and Coty renew fragrance licensing agreement
Hugo Boss and Coty are extending their partnership. The German fashion group has renewed its fragrance license agreement with American company, Coty. The agreement, which began in 1996 and covers Boss and Hugo men's and women's fragrances, will be extended until 2035.
"In line with our 'Claim 5' growth strategy, we want to expand in all regions, across all touch points, for all our brands and products. We are therefore pleased to continue our partnership with the Coty Group, which is undoubtedly the best partner to maximise the potential of Boss and Hugo in the global fragrance market," said Daniel Grieder, CEO of Hugo Boss.
The olfactory strategy developed by Hugo Boss and Coty will focus in the coming years on the United States, where the two partners intend to accelerate the development of Hugo Boss men's fragrances and lay the foundations for the development of women's fragrances; all while continuing to gain market share in its main European markets.
In addition, new products will be added to the Boss Bottled line. Another strategic focus will be to strengthen the high-end segment with the Boss the Collection line, primarily targeting the Middle East and China. The existing Hugo-branded men's and women's offering will also be reinvented to better target Generation Z.
In the third quarter of fiscal year 2022, the Hugo Boss group's sales increased by 18% over 2021, to 933 million euros. During the period, the share of its licensed activity, which includes fragrances, reached 6 million euros, up 13%.
In July, Hugo Boss strengthened its partnership with another of its licensees, the French specialist in high-end and luxury children's fashion, the Children Worldwide Fashion (CWF) group. The group has been a licensee of the Boss Kidswear children's line since 2013 and has also been entrusted with the development of the Hugo brand.
Following the renewal of the Hugo Boss license, Coty indicated that it has no major license to renew in the next six years. The average remaining duration of its six main licenses such as Gucci, Lacoste, Miu Miu and Marc Jacobs, which together represent more than 80% of Coty's prestige fragrance business, will now be about ten years, according to the group.
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