MILAN — Dsquared2 has signed a licensing agreement with Euroitalia for the production and distribution of its fragrances. Financial terms of the deal were not disclosed.
Dean Caten, Dsquared2’s founder and creative director along with his twin brother Dan, explained Euroitalia’s appointment “originated from our need of renovation and [from the] growth we are facing, and, at the same time, our wish to create and offer a product that [indicates] a change and boost the development of our ‘brand experience,’ which we’re focusing on and we believe in.”
“We decided to add Dsquared2 to our portfolio because it’s a growing brand, with great potential of global development,” echoed Euroitalia’s president Giovanni Sgariboldi, adding that “we’re sure we can bring an additional value to the fashion house, to their brand experience and to the renovation and changing process they are looking for.”
With the deal, the Catens aim to increase their fragrance business by 10 percent in the next three years, although they declined to disclose figures on the size of their label’s beauty business. “Our goal is to get more visibility and recognizability, and to develop a more capillary and targeted distribution,” said Dan Caten.
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Sgariboldi explained customized strategies will be implemented to reach the designers’ goals, including investment in promoting the brand off-line and online, along with enhancing the relationship Euroitalia has with its network of distributors to “guarantee Dsquared2 fragrances [get] the best visibility and positioning in strategic and exclusive points of sales,” also through dedicated corners and setups.
The first effort of the partnership will be unveiled in September, when two scents — one for men and one for women — will be launched in Italy. The fragrances have been in the works for almost a year, but details regarding the juices, bottle designs and respective advertising campaigns were not disclosed.
Starting from the domestic and European markets, distribution will gradually expand in the U.S., Asia, the Middle East and Russia in 2019, reaching 10,000 doors at the completion of the international rollout. According to Sgariboldi, the markets where the brand’s fragrances will perform best will be the U.S., the U.K. and Russia.
In 2017, Euroitalia’s sales totaled 832.1 million euros, up 4.6 percent compared to the previous year. Sgariboldi predicted sales in 2018 could grow 5 to 6 percent, also due to this acquisition.
Founded in 1995, last year Dsquared2 posted sales of 255 million euros, including licenses for eyewear, children’s wear and underwear, up by 20 million euros compared with 2016.
Other licenses include ready-to-wear and children’s wear lines produced by Renzo Rosso’s OTB-owned companies Staff International and Brave Kid, respectively; the eyewear collections are manufactured and distributed by Marcolin Group, and the underwear range is by Isa Seta.