Coty, which acquired the Hugo Boss license from P&G in 2016, when the American giant withdrew from the luxury sector, has just announced the extension of their agreement with the German brand until 2035. The partnership includes all Boss and Hugo fragrances for men and women.
Emphasis on the U.S. market and the high-end segment
Hugo Boss aspires to claim a leading global role in men’s fragrances and will place particular emphasis on the U.S. market in the coming years. The joint future developments will complement the Boss Bottled range. In addition, Hugo Boss plans to continue expanding its share of Boss women’s fragrances in key European markets and lay the foundation for this segment to grow into the U.S. market.
Another strategic focus area is the strengthening of the top of the brand’s fragrance range, Boss The Collection. This expansion will specifically enhance the relevance of the Boss fragrance brand in specialty markets such as the Middle East and China.
The two companies also announced the existing offering for men and women under the Hugo brand will also be reinvented to sharpen the focus on young target groups, including Gen Z.
Following this agreement, Coty has no sizeable license up for renewal in the next six years. The average remaining duration of Coty’s top six licenses - which together account for over 80% of the company’s prestige fragrance business - is now approximately ten years.