Simultaneous with the completed brands transfer is Camillo Pane’s ascension to CEO: “Today marks a new chapter in Coty’s rich heritage,” he tells the press. “With this merger, we have brought together a powerful portfolio of much loved beauty brands and some of the world’s most talented people in beauty and consumer goods.”
Coty is now arranged by division: Coty Consumer Beauty, Coty Luxury, and Coty Professional Beauty. Within each of those divisions, the company is focusing on a mix of categories, channels, and brands.
The mass market retail space is the purview of Coty Consumer Beauty, the division responsible for brands such as “Adidas, Bourjois, Clairol, COVERGIRL, David Beckham, Katy Perry, Max Factor, Rimmel, Sally Hansen and Wella,” according to the company press release.
Coty Luxury is all about fragrance and skin care in the luxury and travel retail markets. “Its fragrances include such well-known brands as Marc Jacobs, Calvin Klein, Chloé, Gucci, Hugo Boss, Balenciaga, Bottega Veneta, Alexander McQueen, Davidoff and Miu Miu, amongst others, and skincare brands include Lancaster and philosophy,” explains the Coty release.
And, the company’s professional beauty division manages the hair and nail brands used in salons, like OPI, Sebastian Professional, and Clairol Professional.
The company has big financial goals. “Coty aims to achieve a best-in-class profit margin and cash flow conversion model in an industry with attractive growth dynamics and modest private label penetration,” according to the press release about the completed brands transfer. The company is also looking to save close to $750m in cost synergies, and is working to generate almost “$1bn in free cash flow by year two.”
Coty’s business focus isn’t restricted to the financial side of things. The company’s larger story is one of vision and entrepreneurship too. Beauty entrepreneurship resonates with consumers and is a strong part of many brand stories in the current economy. And Coty is shaping its culture and story accordingly.
“Coty has a unique and long standing heritage of entrepreneurs, upon which the culture of the new Coty is being modeled,” notes the press release. François Coty, Eugene Rimmel, Max Factor, and Sally Hansen “will form the inspiration for the new Coty company to bring new innovative beauty products to consumers and drive shareholder value over time.”