THE BEAUTY REPORT: COTY INC Coty becomes the World No 1
The multi-billion merger of Coty with Procter & Gamble is complete, creating a $9bn-plus global leader in fragrances and a major player in both colour cosmetics and professional hair salon products. Doug Newhouse reports.
to the Coty portfolio include Hugo Boss, Gucci, Lacoste and Escada, plus Tiffany and more latterly a partnership with Burberry. As Margueritte says, Coty Luxury
based in Paris and headed by Edgar Huber, remains focused on expanding the company’s leadership in prestige fragrances, plus its emerging position in skincare in the luxury beauty market across all regions and luxury channels – of which travel retail is key. Margueritte is also promising
travel retailers ‘a disruptive in- store approach’ to ensure that passengers stop and discover all Coty’s brands which go well beyond fragrances alone.
Above: Hugo Boss takes pride of place for one of Gebr. Heinemann’s stores.
T
here has never been any bigger merger in the international beauty business
than the marriage between Coty and Procter & Gamble. As TRBusiness has already reported,
this mega deal – first announced in mid-2015 – is a game changer for Coty, the worldwide beauty and hair care business and the international travel retail channel. Few know this better than Philippe
Margueritte, Senior Vice President of Global Travel Retail, who says the significance of this expansion quickly became apparent to leading operators in the DF&TR business for three main reasons. He believes major operators now
welcome the transformation of Coty into ‘a pure player in beauty’, while
“...our airports and our partners are building fantastic shopping experiences and we therefore consider these new airports [to be] new flagship shopping places.”
Philippe Margueritte, SVP Global Travel Retail, Coty
54 TRBUSINESS
understanding its needs to grow the overall business if it is to truly advance within it. He said: “Secondly, in the case
of travel retail we are combining different capabilities and the best of both companies’ legacies. “Some of P&G strengths were
its first-class consumer insight capabilities and advanced in-store solutions, while Coty was known for its creativity and agility in the market. I think both positive elements are leveraging each other and this is a critical competitive advantage for us today. “Last, but not least, our travel
retail team is global, so we are representing the three divisions of Coty in Luxury, Consumer Beauty and Professional Beauty in one integrated organisation.” Of course, the sheer size of this
new organisation is awesome, having purchased 41 brands from Procter & Gamble to become the world fragrance leader last October. At the same time it has risen
rapidly up the rankings to become the undisputed number two in hair salon products and the world’s number three in colour cosmetics. Just some of the prestige additions
Leading nails with OPI The company already owns the colour cosmetics OPI nail care brand, with its 56% market share [source: Generation] and Margueritte is promising more colourful innovation from this brand. At the same time he believes the
hair care segment to be a source of travel retail growth for a sector that is clearly still under-developed today. He said: “We are looking at those
opportunities very closely, especially with one of our most iconic brands – Wella Professionals, but also some of our premium hair care professional brands such as Sebastian Professional for North America or Nioxin in Europe. “We are also taking into
consideration Good Hair Day (ghd) we acquired last year, which is the leading company in premium styling devices.” Meanwhile, it is sometimes
overlooked that Coty has also long owned its own skincare brands, with Philosophy and the Lancaster Sun care brand – both of which are highly rated. Another priority will also draw on
Coty CEO Camillo Pane’s strategic vision for strengthening global
JUNE 2017
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