The fragrance brand, which is yet to be named, will sell under the singers established fashion and accessories range, L.A.M.B, and is set to enter the retail market in the latter part of 2007, it is her first foray into the fragrance market.
Due to the global prevalence of celebrity-endorsed products within the cosmetics market at present, Coty looks set to further consolidate its position as market leader in Europe, and the US market with the announcement of the Gwen Stefani fragrance range.
Coty hope that Stefani's distinctive fashion style will encourage consumers to purchase the product in the hope of embracing her eclectic manner.
More and more celebrities, such as Britney Spears, Paris Hilton and Jennifer Lopez are choosing to target the premium fragrance industry as a way to expand their global status and generate revenue from the thriving market.
Stefani said of the partnership, "Creating a fragrance is one of the most prestigious things a designer can do. For me it's like another thing you can wear and another thing I can creatively be a part of".
Market researchers, NPD Group says that sales of Celebrity fragrances now represent nine percent of the top 100 women's fragrances and generated about $150 million in 2005, three times the figure for 2000.
However, many stars are now branching out of the fragrance arena and are targeting the skin care market. Stella McCartney and Jackie Chan have both recently launched skin care lines, alongside talks of supermodel Kate Moss launching her own beauty range and Paris Hilton creating a new cosmetics range.
Songstress Rihanna has recently joined the craze and has been announced as the new celebrity face of Cover Girl, appearing in numerous advertisements for the brand, which will launch in the summer of 2007, following the likes of Queen Latifah and Brandy.
Last year Unilever sold its fragrance business to Coty, which in turn made it the world's largest fragrance player. The move, which was valued at €665 million, gave Coty access to key fragrance brands such as Calvin Klein and Chloe.
However, due to Coty's sales strategy relying heavily on the celebrity endorsements market research company, Euromonitor, has suggested it could be hazardous in the future due to the 'ephemeral nature of celebrity culture'.