PARIS • French beauty giant L'Oreal has sniffed out yet another business opportunity.
It will produce fragrances and cosmetics for Italian fashion label Valentino, enhancing its perfumes business by winning a licence previously held by Spain's Puig.
L'Oreal's luxury products division already makes fragrances and cosmetics for Armani and Saint Laurent as well as its own labels such as Lancome.
It is competing with United States cosmetics group Coty, which became the world's leading perfume producer by buying Procter & Gamble's beauty division in 2015 and has licences for brands such as Gucci, Hugo Boss and Dolce & Gabbana.
"L'Oreal aims to become the world leader in perfumes. This licence should allow us to reach that goal," a spokesman said.
L'Oreal did not disclose the terms of the agreement, which will become effective from next year, after regulatory approvals.
The contract with Puig is due to expire at the end of this year.
Known for its romantic haute couture creations, Valentino already boasts top-selling fragrances such as Valentina and Valentino Uomo.
The Valentino deal adds to several that L'Oreal has inked recently in its bid to add further gloss to its bottom line.
In an exclusive tie-up with American discount store Target, it rolled out a Disney make-up collection with packaging tapping Mickey Mouse's image.
This month, L'Oreal also wrapped up its acquisition of Pulp Riot, a professional hair colour brand that debuted in the US in June 2016.
In Asia, L'Oreal is snapping up South Korean make-up and fashion firm Nanda, no doubt on the scent of huge business opportunities in China and South-east Asia where consumers have eagerly lapped up Korean pop culture.
Korean beauty products, from face masks that incorporate innovative and natural ingredients such as snail slime to high-end creams, are also gaining traction outside Asia.