Together with de Silva, Ferré launched its very first fragrance, "Gianfranco Ferré," in 1984. Since then, a body and bath line as well as seven other scents have been brought to market, including the most recent men's fragrance, "Via Pontaccio," in 2001.

Although the 20-year license expired naturally, the choice not to renew the contract reflects the company's current consolidation strategy. Ferré CEO Enrico Mambelli is entrusted with the task of streamlining the various Ferré businesses and creating synergies among its internal departments.

IT Holding Group, which bought Ferré's business back in 2000, has several vertically integrated sub-companies which specialize in licensing, such as Allison eyewear (producers of eyewear for Romeo Gigli, Anna Sui and Exte) and Ittierre (which produces D&G, Versus and Versace Jeans). ITF, the fragrance unit of the group, currently has licenses to produce scents for Roberto Cavalli, Gai Mattiolo, Salvatore Ferragamo and Emanuel Ungaro. Because Ferré is already within the fold of the IT Holding Group, the partnership with ITF for the cosmetics business is a logical choice.

The two groups begin work this month on the development of another Gianfranco Ferré fragrance, scheduled to launch later this year.