England international footballer David Beckham and his pop star wife Victoria have made a significant mark in the fashion industry over the course of the last few years, endorsing a number of big brands including Ray Ban and Adidas, as well as a number of clothing lines supporting their names.
Although the exact terms and value of the deal were not announced, industry experts believe that, in line with all current star endorsements, it will be a multi billion dollar contract that will tie the couple into a series of promotional events and the possibility of further endorsements in the future.
The couple have decided to turn their considerable influence in the fashion world onto a global cosmetics industry that is currently valued at over $200 billion. Victoria Beckham recently announced that she would probably be putting her singing career on hold in an effort to concentrate her energies on the Beckham Beauty House. The move follows the birth of their third son earlier this week.
Likewise, many sports critics beleive that David Beckham could have the peak of his football career behind him, which would also pave the way for the couple to become more involved in their business interests.
"David Beckham is a fascinating personality as the first male celebrity who has succeeded in crossing the borders of sport and fashion. Indeed, as England football team captain and Real Madrid player, David Beckham is arguably one of the most famous footballers ever, while his own strong bold fashion style gives him a universal appeal that is a truly global phenomenon," said Bernd Beetz, CEO of Coty.
"He and his wife, Victoria are going to be a very exciting couple for us to work with. This will be the first time that we have created fragrances with a couple and with a male celebrity. The Beckhams embody many of the star qualities that we seek in our brands and as a company." David Beckham has already announced the launch of a new line of leisurewear from his sponsor, adidas, which is also licensed under another agreement with Coty.
Steve Mormoris, senior vice president of International Marketing for Coty Beauty Europe said that this would be the first of a series of launces involving the couple. He also emphasized the strength of David Beckham's market appeal, saying that his aspirational image would go a long way towards making his fragrance brands a big success.
Only last week Jennifer Lopez announced the launch her third fragrance, Miami Glow by JLo, which is also being marketed under a licensing agreement with Coty.
Lopez moved into the world of fragrance with the launch of Glow by JLo in 2002, which was followed by Still Jennifer Lopez, also under agreements with Coty.
Coty currently has a portfolio of fragrance and fashions brands that include leading names such as Davidoff, Jil Sander, JOOP!, Nikos, Vivienne Westwood, Kenneth Cole and Baby Phat.
A recent report by Mintel about celebrity endorsements in the cosmetics industry concluded that big name endorsements are prohibitively expensive for all but the largest cosmetics companies.
Despite the expense, the right endorsement can create leading sales, as demonstrated by the Britney Spears endorsed fragrance, Curious. But equally Mintel points out that mixing the wrong name with wrong product can be a disastrous and very costly exercise for cosmetic companies.
Simply put, the perfume industry is big business and celebrity sells. According to market research company Euromonitor, the fragrance industry was worth $22.4 billion (€18.5 bn) in 2003, for fragrance sales alone, not including extended product lines. Of that, premium brands accounted for nearly $15 billion (€12 bn), and products with mass-market appeal US$ 7.7 billion (€6 bn).