MILAN, Italy — Prada SpA said it signed a licensing deal for Coty Inc. to create and distribute perfumes under the Miu Miu brand, expanding its second-largest unit in the $60 billion luxury beauty industry.

The Miu Miu fragrance line is expected to be introduced in 2015, the Milan-based company said today in a statement.

Prada is seeking to develop Miu Miu as global demand for luxury goods cools. The 20-year-old fashion and accessories label, named after Prada Chairman Miuccia Prada, had sales of 512.8 million euros ($706 million) in the year ended Jan. 31, or 16 percent of total company revenue.

The agreement with Coty "marks a major step forward in Miu Miu's development plan," Prada Chief Executive Officer Patrizio Bertelli said in the statement.

Sales of luxury goods are set to expand 2 percent this year to 217 billion euros, according to Bain & Co. Spending on beauty products, which accounts for about a fifth of the total, will grow in line with the market, Bain estimates.

By Andrew Roberts; Editors: Robert Valpuesta, Paul Jarvis