L’oréal has signed a long term licensing agreement with Italian fashion house Prada to develop a line of luxury cosmetics, which, according to representatives of the French cosmetic giant, will be the “perfect addition” to the brands Luxe.
Patrizio Bertelli, CEO of Prada, said that L’oréal is “the perfect partner” for such a project, given the leading position of the company in the global beauty industry. According to Bertelli, Prada is already “well-established perfume identity”, but this Association will allow the fashion house to develop their “full potential through a variety of new projects” and ultimately to reach more audience around the world.
Europe remains the world’s largest market for luxury cosmetics, which is estimated to cost 3 billion euros. A recent study by Kantar Worldpanel showed a particularly strong commitment to luxury and beauty in Spain: two out of every ten euros spent on cosmetic brands.
Prada, mainly engaged in the production of leather products, shoes and clothing luxury, also worked in the perfume in accordance with the license agreements, but this latest license agreement with L’oréal marked the first step in Prada cosmetic industry.
From the President L’oréal Luxe division Cyril of Capua stated that the license provided the company with “a great addition to the portfolio of iconic brands”. At L’oréal Luxe is already represented brands such as Giorgio Armani, Yves Saint Laurent Beauté and Ralph Lauren. “We are very pleased to have signed this license agreement with Prada. This is one of the most respected players in the global luxury industry,” said Chapoy. – The symbol of superiority and avant-garde, unique and innovative philosophy of the brand Prada attracts consumers around the world.”
Luxury cosmetics lately has been particularly strong for L’oréal, its Luxe division reported dynamic growth in the third quarter. L’oréal Luxe has received 2.75 billion euros of total sales, the components of 7.18 billion euros for the quarter, which is 13.8% more than in the same conditions. Extremely popular products was a new development Lancôme – Génefique Serum and Calendula-Infused Water Cream from Kiehl’s.
In October of this year L’oréal also announced its agreement to acquire the entire fragrance division of Clarins Group, including iconic brands are Mugler and Azzaro. Exclusive negotiations began in July, and the transaction will take place in the first quarter of 2020.