Coty has inked a deal with Prada to create and distribute fragrances under the Miu Miu fashion brand, which is best known for its handbags and other fashion accessories.
Prada is seeking to develop Miu Miu as global demand for luxury goods cools. The 20-year-old fashion and accessories label, named after Prada Chairman Miuccia Pada, had sales of about $700 million in the most recently concluded fiscal year. The deal with Coty would allow Prada to expand its second-largest unit in the $60 billion luxury beauty industry.
The agreement with Coty “marks a major step forward in Miu Miu’s development plan,” Prada Chief Executive Officer Patrizio Bertelli said in the statement.
The Miu Miu fragrance line is expected to be introduced in 2015, the Milan-based company said yesterday in a statement.
Sales of luxury goods are set to expand 2% this year to $293 billion, according to Bain & Co. Spending on beauty products, which accounts for about a fifth of the total, will grow in line with the market, Bain estimates.