A fragrance partnership between Spanish singer Enrique Iglesias and beauty company Coty has been announced, in a move which confirms Coty's intention to expand within developing markets.
The cosmetics giant hopes the partnership will strengthen its rising markets profile. It is “a great opportunity to expand our business in emerging markets,” they confirmed in a statement.
“Coty continues to actively seek - and create - opportunities to expand into emerging markets."
Male fragrances causing a splash in developing markets
Male fragrance is booming in these regions, so Coty’s focus on the segment proves a canny choice for strengthening the company’s profile within them.
The sector took off recently, with double-digit growth in the period of 2007 to 2012 in the Middle East and Africa and Latin America.
In Mexico, the male fragrance is the second-largest category for growth-rate within the cosmetics industry at the moment, with value and volume shares of 25 and 24.5%.
Focus on Brazil
Brazil is the Latin American cosmetics sector enjoying the most substantial growth, and Coty appears to be capitalising on its particularly favourable climate.
The Brazilian cosmetics market makes up over half of the Latin American beauty and personal care market and was valued at $42 billion in 2012. The market features over 2,000 cosmetic, toiletry and fragrance manufacturers.
Coty confirmed its particular focus on Brazil in a statement.
“We have particular interest in the growing beauty market in Brazil, which we demonstrated last year when we announced our joint venture there, Coty Brazil. We know that Enrique is popular there, so we will certainly look to build a strong presence in that region for his fragrances.”
The House of Enrique Iglesias expects to release its first fragrance in the summer of 2014.