THE BEAUTY REPORT: COTY INC
others about it. Interestingly, he also adds that
while Coty does have exclusive travel retail offers from time to time, the company prefers to talk about unique rather than exclusive offers, since its experience is that the word exclusive is not always that meaningful for the consumer. He said: “Uniqueness for us is really
Philippe Margueritte, Senior Vice President of Global Travel Retail Coty Inc.
brands and reallocating resources to those brands that hold higher- growth potential and Margueritte says travel retail will be ‘at the heart of it’, as he explained. “Why? Because our airports and
our partners are building fantastic shopping experiences and we therefore consider these new airports [to be] flagship shopping places. “It is a fantastic opportunity to
express the DNA and the luxurious look and feel we bring with our brands. So we are partnering really deeply with our retailers to try to build further those luxury environments.” While these and other huge
transformational changes take place at Coty as a whole, Margueritte acknowledges that he has a few wishes of his own for the travel retail business, as he explained. “The first one would to be
recognised as the industry leader in fragrances – not because of our market share – but because we are able to bring novelty and a disruptive in-store approach. “Secondly, it is clearly the digital
transformation within Coty, bringing improved services to our key partners. The third is about our people. We want to continue to attract the most talented leaders into travel retail and work with people who are passionate about beauty and travel retail.” Still on the subject of passion,
Margueritte says Coty is also working hard to build more unique shopping experiences in store, so its customers remember these experiences and tell
JUNE 2017
the ability to deliver a memorable experience to the shopper. It can also be a part of the gifting routine for example, or a personalised product, but it is something that makes him or her feel alive, different and in one word – unique.” He added that this ‘uniqueness’
be expressed in many very different ways: “We are working very actively to try to build some unique shopping experiences in store.”
Driving store penetration Other ‘very important priorities’ for Coty include greater digital engagement with its customers to help drive them into travel retail shops in the first place. As Margueritte says, the whole
business has a major issue when it comes to the cold hard fact that only 16% of travellers are actually buying in travel retail shops. He said: “This means we have 84%
of travellers just being there who do not really engage with the products. We believe digital tools can be a strong [aid] to improve this ratio. “If we can partner with the retailers and grow this penetration
“If we can partner with the retailers and grow this penetration from 16% to 17% – which is only one point of conversion rate – this would generate a 6% growth in the overall beauty market.”
Philippe Margueritte, Coty
from 16% to 17% – which is only one point of conversion rate – this would generate a 6% growth in the overall beauty market. “And if you add a 5% passenger
growth, this would mean that travel retail could go back to its famous double-digit growth. “This is where we are putting
in a lot of energy. I think we were spending too much time on other things than to partner on the conversion rate. “So we initiated with some key
retailers strong strategies to raise their ability to grow the conversion rate in their stores and we started that at the end of 2016. “We are aiming at implementing
joint strategies by the second half of 2017.” On a separate note, he says Coty
wants to develop its digital tools to improve the management of its marketing investments, get better control of in-store execution and possibly even empower its field force with the tools to bring people into the shop.” «
The internationally-recognised Gucci brand will be a key pillar for Coty in DF&TR. TRBUSINESS 55
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