ITALY/SWITZERLAND. Design duo Dolce & Gabbana have signed a new fragrance license with beauty powerhouse P&G Prestige Products (P&G). The license was previously held by Euroitalia.
The existing fragrance portfolio will be marketed and distributed by P&G as of 1 July 2006. Until then, EuroItalia will be responsible for the marketing and distribution of the current fragrance line-up.
The clinching of the Dolce & Gabbana license is in line with P&G Beauty’s corporate strategy to strengthen its core businesses and focus on higher-growth, higher-margin businesses. The terms of the deal were not disclosed.
“Dolce & Gabbana is famous all over the world as a symbol of Italian glamour,” commented P&G Prestige Products President Hartwig Langer.
“The brand stands for a timeless style, for an unconventional luxury which, season after season combines innovation with the strong Mediterranean flavour of its origins. Its sensual and unique style has a following of Hollywood and music celebrities alike – enjoying an iconic status. These factors create an outstanding dream level that lends the brand all the key assets to build and grow successful fragrance classics.”
He continued: “The signing of the Dolce & Gabbana license represents a winning partnership between Dolce & Gabbana’s creativity and style with our key strengths of consumer insights, market segmentation, innovation and partnership with our retail customers to build a successful global business.
“The brand also fits with our strategy to grow the business through brands with strong growth potential, occupying positions of global or regional market leadership.”
In turn, with this agreement the Dolce & Gabbana Group further underlines its strength in establishing powerful partnerships in the licensed business as well as its will to remain focused on its core business.
“This agreement is in line with the Group’s objective to focus on its clothing and accessories core business and follows both the collaboration with another international key player for the eyewear license as well as the Group’s decision to manage the production and distribution of D&G branded clothing and accessories in-house,” commented Domenico Dolce and Stefano Gabbana.
“It is not by chance that it concurs with the Dolce & Gabbana brand’s 20th anniversary. We are at a very crucial point in the history of our company and [this choice] ensures the strength and the solidity of tomorrow’s Dolce & Gabbana and of its brands in particular.
“We see in P&G a partner capable of supporting us in achieving our growth objectives not only in business terms but also, and above all, in terms of the brand’s consolidation: nothing like a perfume can make a brand become universally known and timeless.”
MORE ABOUT P&G
P&G Prestige Products, a division of P&G Beauty, is headquartered in Geneva. It owns or has the license to market brands such as Hugo Boss Parfums, Lacoste Parfums, Gucci Parfums, Escada Fine Fragrances, Jean Patou Parfums, Dunhill Fine Fragrances and Valentino Parfums.
P&G Beauty sells more than 130 different brands in over 180 countries worldwide. It generated more than US$19 billion in global sales in fiscal year 2004/05, making it one of the world’s largest beauty companies.
MORE ABOUT DOLCE & GABBANA
The Dolce & Gabbana Group – which owns the Dolce & Gabbana and D&G Dolce & Gabbana brands – creates, produces and distributes clothing, knitwear, leathergoods, footwear and accessories for the luxury goods sector. Current licensing agreements cover Dolce & Gabbana and D&G Dolce & Gabbana branded fragrances and eyewear and D&G Dolce & Gabbana clothing, wristwatches and jewels.
At the end of the fiscal year to 31 March 2005, the Group, which heads Dolce & Gabbana S.r.l., registered consolidated revenues of €686.4 million. The EBITDA amounted to €204.2 million; the EBIT to €143.4 million.
