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From Marni × Coty to Coperni × Swarovski - how fashion brands use licensing to scale and collaborations to spark creativity and cultural impact.
Sectors & Markets
04 November, 2025
Table of contents
In the contemporary fashion industry, growth and brand-extension strategies increasingly hinge on two key models: licensing and collaboration. For fashion houses seeking to scale, enter new product categories, tap fresh audiences or generate new revenue streams without wholly reinventing their core business, these models provide valuable alternatives to purely organic expansion. Yet despite their superficial similarity - both involve working with another party and leveraging brand equity - licensing and collaboration differ significantly in terms of ownership, strategic intent, risk, control and duration.
This article explains the difference, examines how they are used in fashion, and illustrates each model with real-world case studies.
In a licensing arrangement, the brand owner (licensor) grants a third-party (the licensee) the right to use its intellectual property - name, logo, design elements, trademark - in exchange for a fee or royalty and under agreed terms. The licensee typically handles production, distribution and often bears investment risk; the licensor benefits from incremental revenue with relatively limited infrastructure investments. As one study notes, “a licensing agreement allows a designer or brand owner to grant rights to another party - often a manufacturer or distributor, to produce and sell products under the brand name.”
According to the UCLA Anderson Review study “Luxury Brand Licensing: Free Money or Brand Dilution?” by Arifoglu and Tang (2019), licensing enables brands to reach a broader base of aspirational consumers, often referred to as “followers.” However, excessive licensing can risk diminishing the sense of exclusivity that appeals to high-end clientele.
Even more recently, an industry-wide report found that fashion licensing grew 8,1% in 2024, outpacing the broader global licensing industry (which grew 3,7%). The report concluded that the lack of new entertainment-IP in 2024 led to a structural shift in favour of fashion-category licensing deals.
Key features of licensing often include:
Ownership of the core brand remains with the licensor.
The licensee pays upfront fees and/or ongoing royalties.
The licensor typically exerts brand guidelines, quality controls and pre-approval rights, but does not run day-to-day operations for the category.
The term is usually multi-year, often across territories or categories.
Strategic goals often include category extension, tapping new geographies or product categories, and low-investment scaling.
Safilo S.p.A. - Licenses and produces eyewear for brands such as Missoni, Carolina Herrera, Boss, Marc Jacobs, Love Moschino, Etro, and Tommy Hilfiger.
Missoni × Safilo (2018 - 2024) - A multi-year global licensing agreement granting Safilo S.p.A. the rights to design, produce, and distribute Missoni eyewear and sunglasses. The deal enabled Missoni to extend its brand into the luxury eyewear segment without developing in-house production capacity.
EssilorLuxottica SA - Global leader holding licenses for Prada, Dolce & Gabbana, Versace, Burberry, and Tory Burch eyewear.
Marcolin S.p.A. - Licensed producer for Tom Ford, Max Mara, Moncler, Bally, and Pucci eyewear.
De Rigo S.p.A - Manufactures and distributes eyewear under licences for Philipp Plein, Furla, Roberto Cavalli, Police, and Escada, alongside its own house brands such as Lozza.
These partnerships demonstrate how eyewear has become one of the most structured and lucrative segments in luxury licensing, combining category expertise with brand heritage.
Timex Group B.V. - In January 2025, Timex announced a new licensing agreement with Aston Martin (including the Aston Martin Aramco F1-Team) to design, manufacture and distribute watch and jewellery collections under the Aston Martin and Aston Martin Aramco F1 brands.
Missoni × Timex Group B.V. (2019 - 2024) - A global licensing partnership through which Timex designed, manufactured, and distributed Missoni watches worldwide. The collaboration strengthened Missoni’s accessories portfolio and leveraged Timex’s horological expertise for fashion-driven timepieces.
Fossil, Inc. - In February 2025, Fossil, Inc. extended its partnership with Michael Kors through 2027, continuing to design and distribute Michael Kors-branded watches and jewellery.
Movado Group Inc. - Movado Group Inc. extended its license agreement with Hugo Boss to 2031, covering design, production and marketing of BOSS / HUGO branded watches and jewellery.
Fragrance and Beauty Licensing
Coty, Inc. - Manages long-term beauty and fragrance licences for Burberry, Hugo Boss, Marc Jacobs, Calvin Klein, and Chloé. Coty, Inc. continues to be one of the most active players in the global beauty-licensing landscape. However, as part of a landmark 2025 agreement, the Gucci beauty and fragrance licence will transfer from Coty, Inc. to L'Oreal SA for 50 years, following the deal between Kering Group and L'Oreal SA.
L'Oreal SA - Holds fragrance and beauty licences for Yves Saint Laurent Beauté, Valentino Beauty, Maison Martin Margiela, Prada Beauty, and Viktor & Rolf. L'Oreal SA’s luxury division operates through exclusive, multi-year agreements that combine marketing expertise with global distribution scale.
The Estee Lauder Companies Inc. - Oversees licensed beauty and fragrance lines for Tom Ford Beauty, Balmain Beauty, and Dries Van Noten Parfums. The group uses selective licensing to extend into designer fragrances while maintaining prestige positioning.
Inter Parfums Inc. - Holds fragrance licences for Coach, Jimmy Choo, Moncler, Montblanc, and Rochas. Its model demonstrates how fragrance licensing generates consistent royalty income for fashion houses with minimal in-house manufacturing risk.
Tapestry Inc. × Inter Parfums Inc. (2024) - Announced a long-term fragrance licensing deal covering Coach, Kate Spade, and Stuart Weitzman fragrances, expanding their beauty portfolio through a specialist partner.
Marni × Coty Inc. (2025) - Marks Marni’s strategic brand extension into beauty through a licensing structure rather than internal product development.
Rebecca Minkoff × Sunrise Brands (2025) - Multi-category licensing deals across handbags, footwear, and jewellery allowed Rebecca Minkoff to extend her lifestyle portfolio and retail presence.
Vince × Authentic Brands Group Llc. (2023) - ABG acquired Vince’s intellectual property and licensed it back to the company, enabling global scaling under a lighter asset model. This structure allows Vince to focus on creative direction and brand management while ABG handles operational growth.
A collaboration (sometimes called co-branding or capsule collection) occurs when two (or more) brands work together to create a joint collection or limited-edition product offering. Unlike licensing, both parties are actively involved in design, marketing and often share equity in the creative outcome (though not necessarily equal). The key value lies in combining brand equities, cross-pollinating audiences, driving hype and generating visibility.
A recent report by THG Ingenuity titled “The Impact of Brand Collaborations and Limited-Edition Products” observed that such partnerships boost brand awareness and product discovery, noting that around 60 % of consumers are motivated to purchase by a sense of “fear of missing out.”
Key features of collaboration often include:
Shared creative ownership (the collaborating brands determine design, messaging, launch).
Short-term duration (often one capsule, seasonal or limited drop).
Mutual visibility benefits: each brand taps the other’s audience, media attention and novelty value.
Strategic goals include brand refresh, tapping new segments, generating buzz, experimental branding rather than long-term category manufacturing.
Collaborations allow luxury and fashion brands to refresh their image, tap new audiences, and test creative directions without long-term commitments or capital investment. They also bridge industries - fashion with art, music, gaming, or lifestyle - to keep brands culturally relevant and socially visible.
Recent examples illustrate how this model has evolved from one-off hype drops to strategic, audience-driven storytelling partnerships:
In November 2024, the capsule between Skims and Dolce & Gabbana merged the shapewear-brand aesthetic with Italian luxury design. The ten-piece collection featured lingerie, swim and ready-to-wear items with leopard prints, body-hugging corsets and monograms - and came in inclusive sizing XXS-4X.
In February 2024, the luxury fashion house Loewe partnered with artist Richard Hawkins for a creative capsule. The Autumn/Winter 24 menswear line featured the Puzzle tote plus oversized jumpers, hoodies and sweatpants featuring Hawkins’ collages and iconography.
Another 2024 example happened in December: The cross-industry set of fashion x auto collaborations. Brands such as Balenciaga, Kith and Aimé Leon Dore teamed with car manufacturers like BMW, Mercedes‑Benz and Lamborghini on limited-edition drops in 2024.
In early 2025, the collaboration between Swarovski and Ariana Grande launched a capsule crystal collection aimed at a younger, style-savvy audience while preserving the heritage of the crystal house.
Another standout in October 2024: Coperni teamed with Swarovski for the “Crystal Swipe” bag drop, released Spring/Summer 2025. The launch blended couture with heritage crystal-making and debuted at Disneyland Paris, marking how luxury collaborations are becoming immersive experiences.
Finally, also in January 2025, the designer Samuel Ross introduced his collaborative capsule with Zara: SR_A Engineered by Zara. The first of four collections included 40 pieces (90 SKUs) launched in February 2025 across multiple major cities, reflecting how high-fashion design is entering mass-market channels via collaboration rather than full vertical integration.
Here is a comparison across four dimensions:
| Dimension | Licensing | Collaboration |
|---|---|---|
| Ownership & Control | The licensor retains brand ownership; the licensee handles production and distribution under agreed guidelines. Example: Rebecca Minkoff × Sunrise Brands (2025) – The designer signed multiple licensing deals across handbags, footwear, and jewellery, allowing partners to manage production while retaining brand control. |
Both brands share creative control for the collection; ownership of the resulting capsule depends on the agreement. Example: J.Crew × Khiry (2025) – A co-created six-piece jewellery capsule where both teams jointly developed designs reflecting J.Crew’s preppy heritage and Khiry’s Afrofuturist aesthetic. |
| Duration & Scope | Usually long-term (multi-year), often category- or territory-wide. Example: GANT × Marcolin Group (Renewed 2024) – Eyewear licensing agreement extended until 2032, ensuring category consistency and global reach. |
Usually short-term (seasonal or limited edition), scoped to a specific drop or capsule. Example: Vivienne Westwood × Palace Skateboards (2024) – A single-season collection mixing punk luxury with streetwear culture. |
| Strategic Goal | Extend brand into new categories or markets with minimal investment; generate incremental royalty revenue. Example: Coty Inc. × Marni Beauty Licence (2025) – Marni entered the beauty category through Coty’s expertise, expanding reach without internal production. |
Generate hype, access new audiences, refresh brand image, and leverage partner equity. Example: Craig Green × Eastpak (2025) – The British designer partnered with Eastpak to reinterpret utilitarian design, merging luxury craftsmanship with functional heritage. |
| Risk & Investment | The licensee bears manufacturing and distribution risk; the licensor monitors brand integrity. Over-licensing can dilute brand equity if not managed. Example: Vince Holding Corp. × Authentic Brands Group (2023) – ABG acquired Vince’s IP, assuming operational risk while Vince focused on brand management. |
Both parties invest in design and marketing; risks include mismatched aesthetics or unsold inventory, but reward lies in visibility and sales spikes. Example: Fendi × Stefano Pilati “Friends of Fendi” (2023) – A collaborative capsule celebrating mutual legacy, boosting engagement and press traction. |
| Control of Execution | Licensor enforces brand standards but has limited daily oversight over the licensee’s operations. Example: GANT × Marcolin Group (2024) – Marcolin designs and produces eyewear following GANT’s brand codes while retaining autonomy in execution. |
Brands jointly manage design, marketing and distribution; requires alignment in storytelling and positioning. Example: Louis Vuitton × Pharrell Williams & KENZO (January 2025) – At Paris Fashion Week, the luxury house Louis Vuitton collaborated with Pharrell Williams together with KENZO’s creative direction by Nigo, jointly shaping collection design, campaign imagery, runway staging and global distribution. |
| Brand Implications | Efficiently monetises brand equity but can erode exclusivity if over-licensed. Example: EssilorLuxottica × Miu Miu (2024) – Luxury eyewear expansion strengthened visibility but required selective distribution to preserve prestige. |
Enhances brand relevance, social media presence, and cross-cultural resonance; misalignment may confuse consumers. Example: Miu Miu × New Balance (2024) – A fashion-sportswear crossover reinforcing Miu Miu’s youth appeal while introducing New Balance to high-fashion audiences. |
Licensing is most effective when a brand aims to expand into new product categories (e.g., eyewear, home décor), enter new geographies, offload manufacturing or distribution risk, monetise dormant brand equity, or pursue an exit or partner-led growth strategy. It enables scalable expansion without heavy capital expenditure or complex distribution networks.
Collaborations are ideal when the objective is to refresh brand perception, reach new or younger consumer segments, generate media buzz, leverage “drop culture,” or elevate positioning through an aligned partner’s cultural equity. They are best suited for limited-edition capsules, seasonal lines, or experiential launches rather than full-scale category roll-outs.
Licensing: Avoid brand dilution, quality inconsistencies, or over-extension into unsuitable categories that may weaken core positioning.
Collaboration: Ensure brand fit, clarify ownership and intellectual-property rights, define roles in design and distribution, and manage post-launch demand carefully. A misaligned collaboration can confuse consumers or erode brand value.
In licensing, the licensor earns primarily through royalties and fees, while the licensee absorbs production and operational costs. In collaborations, both partners share design and marketing expenses; margins can be higher on limited editions, but the model is inherently short-term.
Brands must remain vigilant about how their IP is represented under a licensing model. Collaborations offer greater creative control but require deeper coordination and resource commitment.
The choice between licensing and collaboration depends on the brand’s business model (luxury, premium, or mass market), product lifecycle stage, target segment, and regional or strategic ambitions. Many brands employ both approaches at different points to balance scalability and cultural relevance.
Licensing and collaboration remain two of the most influential growth levers in today’s fashion and luxury landscape.
Licensing provides a scalable, lower-investment route for category and geographic expansion but carries risks of over-extension and brand dilution if poorly managed.
Collaboration, by contrast, delivers cultural visibility and consumer excitement through limited-edition, co-created products - yet it cannot replace the sustainable long-term growth that structured licensing brings.
Ultimately, the decision between these models is not binary. Each serves distinct strategic purposes - one builds long-term presence and infrastructure, while the other drives cultural heat and immediate engagement. For brands navigating the competitive marketplace of 2025, understanding when to license and when to collaborate will define not only growth potential but also long-term brand relevance and competitive differentiation.
Cover Image: WatchPro and USP EDIT.