Given the good results of the Prestige division, Coty intends to adapt its offering to the structural changes in the market, especially regarding fragrances where more consumers prefer longer lasting and more premium products.
“Against this backdrop, we will continue to grow the fragrance category and elevate our business with iconic and leading launches such as Burberry Hero & Her, Gucci Flora Elegant Jasmine & Beautiful Garden, Boss Bottled Parfum and Chloé Atelier des Fleurs.Sue Y. Nabi, Coty’s CEO, commented on the company’s recent results.
A new line of luxury perfumes
Going further in this process, Coty announced in May the launch of Infiniment Coty Paris in 2024, a new collection of high-end fragrances that will be to this category what the group’s ultra-premium brand Orveda is to skin care. The project as “The largest and most aromatic project to date,“For the company.
Patented for both the shape and packaging (the former according to Coty), the collection eventually included fourteen scents.
“Infiniment Coty Paris is an innovation that represents a natural progression for the company, representing beauty, science and art.” said Sue Nabi, explaining that more will be coming in the coming months.
Meet the more luxury oriented market
With brands such as Gucci, Chloé, Burberry and Miu-Miu in its portfolio, Coty has all the means to meet the needs of consumers who are trading up and spending more on premium products, especially perfume and makeup.
In the third quarter of the 2022-2023 fiscal year, Coty posted a 9 percent rise in revenue despite its exit from Russia. During the period, the Prestige division grew 10 percent and generated an operating profit of $102.4 million, compared to $83.8 million last year. It now represents 62% of the group’s activity.
In particular, the company plans to combine initiatives in established businesses with strong savings to redevelop its skincare business, the next key pillar in its strategy, to focus on the top end of the segment.
“While we’re still in the early stages of fueling our Focus Skincare brands, I’m encouraged by the positive early signs we’re tracking, whether it’s driving social buzz and product reviews for Lancaster Ligne Princière, or phase changes driven by philosophy sales. The new product fairness and the newly launched serum, Wisdom Size,” said Sue Nabi.
The most recent launch of Orveda’s omnipotence concentrate responds to the same logic in tapping into the expectations of the upper end of the market.
In early May, the group, listed on the New York Stock Exchange, announced that it was considering a second listing in Paris, with the aim of strengthening its presence in Europe and attracting new investors.