Brand licenses and fragrances

The fragrance industry was early in brand licenses.

Coco Chanel and her perfume are a textbook case. Christian Dior Parfums and cosmetics were at the starting point of Bernard Arnault’s LVMH.

Even today the new Coty CEO mentions licensed brands Gucci, Burberry, Hugo Boss and Adidas first. Her newest stars are Kylie (Jenner) Cosmetics and Kim Kardashian’s KKW.

Burberry licenses perfume/cosmetics again

Burberry has announced to license its perfume and cosmetics again.

Originally a brand license was held by Inter Parfum SA. Then Burberry took the business in-house. The new licensee is Coty Inc.

There are quite a few fashion/apparel brands, which have tried to run the beauty  business on their own. Escada is an example, Balmain a more recent one. But the perfume and cosmetics business is very different from apparel or fashion.

Similar to watches and eyewear, HBA is a prime example for licenses.

Dolce & Gabbana move perfume and beauty

Dolce & Gabbana re-assigned its global brand license for beauty and fragrances.

The new licensee is Shiseido, which holds an Ellie Saab license already.

In 2005 the license had moved to Procter & Gamble after an auction. It was one of the first steps for P&G into the luxury market.

When in 2015 Coty, Inc. bought the P&G Prestige business, including Dolce & Gabbana, D&G objected to the move. Within the Coty portfolio, D&G would have been one of hundreds. At Shideido it is more likely to get full attention.

Concentration in cosmetics and perfume

After Coty taking over the P&G Prestige business, according to news sources, now Revlon wants to take over Elizabeth Arden. The purchase price is supposed to be $870m.

Elizabeth Arden is a licensee of Taylor Swift, Justin Bieber and Christina Aguilera. From Liz Claiborne it has bought the fragrance portfolio including Juicy Couture, Lucky Brand, and Claiborne. It also holds licenses from Alberta Ferretti, Elizabeth Taylor, Mariah Carey, Britney Spears, Badgley Mischka, Gant, Geoffrey Beene, kate spade new york, Rocawear, Giorgio Beverly Hills, Ed Hardy, True Religion, and BCBG Max Azria.

Both companies sell their products in more than 120 countries, and when combined are expected to have sales of around $3bn.

Cosmopolitan Perfume License

Women’s magazine Cosmopolitan has signed a license for perfume.

The licensee is Jigsaw ESL.

Launch was in 350 Boots stores in the UK. Roll out is planed for Germany and Australia.

Cosmopolitan, which has an eyewear license already, is competing with one of its biggest customer groups, the fragrance and cosmetics industry.

P+G sells Rochas

Procter and Gamble has sold its Rochas brand to Interparfums SA, a subsidiary of Inter Parfums, Inc.

Rochas started as a fashion house and expanded into perfumery in the 1950s. In 2013/2014 Rochas had net sales of US$46 million. This includes US$2 million of royalties generated by the fashion and accessory business via license agreements.

This sale covers all brand names and trademarks, the selling price is US$108 million.