COTY Inc. E-Portfolio

COTY Inc.

COTY Inc. was founded in 1904 by Francois Coty in Paris France. His vision: To offer a product rich in appearance that is affordable at a variety of price points.

Today, COTY is the new emerging leader in beauty products. The company is currently run by Chief Executive Office Michele Scannavini. In 2010 and 2011 the company acquired Dr. Scheller Cosmetics, OPI Products, philosophy and TJoy of China. Their culture is driven by the spirit of “Faster. Further. Freer.” The company pushes boundaries and supports creativity.

COTY has offices in more than 30 countries and sells their products in over 130 countries and territories. The company currently employs over 12,000 people worldwide. There are three corporate headquarter locations in: New York, Paris and Geneva. They have production facilities in:[1]

• Ashford, UK
• Chartres, France
• Granollers, Spain
• Monaco,
• Jiangsu Province, China
• Sanford, North Carolina
• Los Angeles, California
• Phoenix, Arizona

Currently approximately 68% of the fragrance, color cosmetics and skin & body acre products are manufactured in ten facilities listed above. The remaining approximate 32% of the finished products are manufactured to COTY specifications by third party companies[2].

COTY believes in maintaining a diverse portfolio of brands and products in order to keep up with the competition in all market sectors. Their products are sold under three major categories: Fragrances, Color Cosmetics, Skin & Body Care. They currently produce over 45 brands and their top 10 are: Adidas, Calvin Klein fragrances, Chloé, Davidoff Parfums, Marc Jacobs Fragrances, OPI, philosophy, Playboy fragrances, Rimmel London and Sally Hansen.[3]

COTY brands and products are available for sale through many retail and department stores. Certain brands are also available for purchase through e-commerce websites.

Pricing for COTY Brands and products range from $0.99 for N.Y.C brow-liner pencils[4] and upward. (Photo credit http://www.coty.com/brands/nyc-new-york-color)

Philosophy, one of COTY’s top ten brands, can be found at many stores including: Sephora, Macys and Nordstrom.  When you purchase Hope in a jar, philosophy will donate $5 from every sale to The Breast Cancer Research Foundation. 2oz of this moisturizer costs $39 and comes with a keepsake hope charm[5].

On April 30^th, 2012, Coty Inc. attended The DKMs 6^th Annual Gala and aided to raise $3.2 million to support the fight against blood cancer[6].

Advertising campaigns include a variety of commercials, magazine ads as well as partnerships with models, musicians and movie stars.

Here’s a jazzy commercial video showcasing many of the COTY brand names and products:

 

  

Net revenues for the fiscal year ended June 30^th of 2011 were reported to be $4.1 billion. Net revenues by product category show:

For the third fiscal quarter of 2012 ended March 31 Net revenues were already at $3,587.9 million. Of this, Gross Profits was $2.164.3 million[7].  The company expects to grow in all areas of competition by 3.9% between 2011 and 2016.[8] Operating expenses include: Fixed costs such as buildings, land, machinery, insurance, permits, licensing, patents and rent on leased properties. Other operating expenses include: Variable costs such as wages, employee benefits, supplies such as containers for product, labels, utilities, packaging, advertising expense, and raw material.

COTY attempted to buy out one of its biggest competitors, Avon. It’s been reported that COTY has withdrawn their $10.7 billion offer[9]. Below is a video from The Wall Street Journal about the bid.

The company lists its competitive strengths in a report filed on June 28^th 2012 at the Securities and Exchange Commission (page 85 as referenced in footnote 7). These strengths are listed as:

• A portfolio of strong, well-recognized beauty brands anchored by our “power brands” across three key beauty segments
• Global powerhouse in gragrances
• One of the fastest growing innovators in color costmetics
• Licensee of choice
• Entrepreneurial culture drives superior innovaition
• Product, channel and geographic diversity
• Compelling financial profile
• Skilled acquirer
• Experienced management team with proven industry track record

COTY will continue to expand with global developments and brand invention to expand their ever growing portfolio. The company plans to expand and strengthen their position in the skin and body care market sector and extend their product distribution at all levels. Their competitive advantage is simple. With a broad range of products available for sale at various price points, there’s something for everyone.

COTY is a brand giant and with partnerships with fashion and celebrities they’ve established themselves to be a pillar of the cosmetics and beauty supply industry. Women will always want to be beautiful and COTY will always be there to fill the demand for beauty products.