The collaborations and partnerships in business are mutually beneficial and they survive as long as it benefits both the parties. In the luxury segment, the latest agreement has been signed between Estée Lauder Cos. and Ermenegildo Zegna Group. The agreement provides the Italian brand an alternative lucrative channel. And Estée Lauder gets the right to market fragrances as well as develop new product lines. Both parties see a lot of potential in this agreement and are confident that it will serve their purpose. The agreement will become effective from July 21.
Veronique Gabai-Pinsky, global president of Aramis & Designer Fragrances at Estée Lauder Cos., New York sees this agreement as an effective way of increasing ELC’s presence in Europe, North America, emerging markets, and the high end men’s market. Zenga will provide them the legitimacy in the men’s business. The Zegna brand specializes in men’s apparel, accessories and leather goods. They will benefit in terms of the reach of Zenga Fragrances which will increase dramatically after the agreement becomes operational. They will also benefit from the introduction of new grooming products and be able to provide the entire range of beauty products.
Zenga is confident that they will be able to leverage the agreement to grow into the most successful men’s grooming lines in global luxury beauty and it will help them position themselves as lifestyle brand with a complete range of men’s products. The brand especially hopes to reach consumers in emerging markets, with a focus on retail locations. The details of the marketing strategies to be adopted will emerge once we come close to the date of activation of the agreement. Estée Lauder owns and distributes La Mer, Donna Karan, Michael Kors, Jo Malone and Tom Ford. Zegna’s fragrance license will consolidate its position in the luxury market.