Miu Miu to launch perfumes in 2015

Italian luxury brand Prada is investing in its sister brand Miu Miu in a bid to diversify away from its mainline. Miu Miu has agreed a deal with cosmetics giant Coty to create a perfume for the brand that was launched 20 years ago by Prada chairman Miuccia Prada. The first perfumes will be sold by 2015 and is part of the luxury group’s plan to widen the brand awareness of Miu Miu.

Luxury giants such as Louis Vuitton owner LVMH and Gucci owner Kering have been widening their collection of brands to ensure they are less reliant on one single brand as warnings of a sales growth slowdown for luxury emerges.

Prada’s deal with Coty is part of a plan to step up its focus on Miu Miu’s growth.

Erwan Rambourg, HSBC’s head of consumer and retail, said: “For a brand looking to develop awareness, targeting a younger crowd and looking to step up advertising at a limited incremental cost - a very good option is to sign a licence agreement with a fragrance specialist. The specialist will run the business, invest for you, leverage some advertising campaigns, make a bit of money and pay a royalty.”

The fragrance deal for Miu Miu will push the awareness of the brand to new consumers.

Patrizio Bertelli, CEO, Prada Group said: “The agreement with Coty marks a major step forward in Miu Miu's development plan. I am sure that, leveraging on Coty’s know-how and Miu Miu’s strong identity, this partnership will be a worldwide success.”