In a time when companies are struggling to stay afloat, this kind of deal is especially beneficial for Luxottica. Licensing brands gives it access to a wider range of products than it would be able to produce itself, and it can charge much higher prices for those products than competitors like Ray-Ban or Tom Ford. This means that even if Armani, L’Oréal, and Fossil struggle from time to time – as every company does – they’ll still be able to make money thanks to deals like this one with Luxottica.
Armani licenses its name and branding to Luxottica
Armani licenses its name and branding to Luxottica for eyewear, fragrances, and cosmetics. Luxottica is a subsidiary of the Italian luxury goods conglomerate, Ferrero. This partnership gives Armani access to Luxottica's customer base and marketing resources.
L'Oréal licenses its name and branding to Luxottica
L’Oréal licenses its name and branding to Luxottica for eyewear, fragrances, and cosmétiques. In a joint press release, the two companies announced that L’Oréal will manage the licensing business for Luxottica in more than 60 countries while Luxottica will continue to design, manufacture, market, and sell all L'Oréal products. The companies said that this agreement "creates a world-class platform for growth." This accord comes after years of negotiations between the two brands. According to L’Oréal's CEO Jean-Paul Agon, "Luxottica is a true global leader in the beauty industry with an impressive heritage and a track record of success. We are delighted to join forces with them and look forward to building on our shared strengths."
This arrangement is likely to be beneficial for both brands as it gives L’Oréal access to Luxottica’s resources and expertise in designing and marketing prestige products around the world. It also gives Luxottica access to L’Oréal’s customer base and brand awareness. The deal is expected to generate annual revenues of around €1 billion by 2020.
Fossil licenses its name and branding to Luxottica
Fossil is licensing its name and branding to Luxottica for eyewear, fragrances, and cosmetics. The deal was announced on Wednesday and will last for 10 years. Fossil will retain control of its own products while Luxottica will manage the production and distribution. The move is a strategic one for both companies as they seek to expand their reach beyond traditional apparel and accessory sales.
The two companies have a long history of working together, with Luxottica previously owning a 10% stake in Fossil. The partnership will give Luxottica access to the brand’s global customer base and help it expand into new markets. In turn, Fossil gains access to Luxottica’s expertise in product development, marketing, and distribution.
The move comes as competition increases in the beauty industry. Both companies are looking to capture a larger share of the market by focusing on high-end products that are not typically sold through traditional retailers.
What is the deal with Armani, L'Oréal, and Fossil?
What is the deal with Armani, L'Oréal, and Fossil?
Armani, L'Oréal, and Fossil are all brands that Luxottica owns. In 2012, Armani transferred its licensing rights to Luxottica for eyewear, fragrances, and cosmetics. This deal gave Luxottica ownership of the Armani name and logo, as well as the right to produce and sell Armani-branded products around the world.
What does this mean for customers?
Luxottica, the Italian eyewear and fragrance company, has agreed to license Armani name and brand for eyewear, fragrances, and cosmetics. Terms of the agreement were not disclosed.
"This agreement strengthens our longstanding relationship with one of the world’s most renowned luxury brands," said Massimo Donaggio, president and CEO of Luxottica. "We are excited to continue collaborating with Armani on a wide range of products that will appeal to both consumers and fashionistas."
Under the terms of the deal, Luxottica will manufacture and market all Armani-branded products globally. The companies also plan to create joint ventures in China and other key markets.
What does this mean for Armani, L'Oréal, and Fossil?
Armani, L'Oréal, and Fossil are all brands that Luxottica now owns. This means that the three companies will be working together more closely and that customers will see the same products from all three brands. Armani will now be known as Luxottica Armani, while L'Oréal will become Luxottica L'Oréal. Fossil will remain as Fossil. This change is expected to take place in early 2017.