"We are very confident in our China business, and the Hainan travel retail business has become another major driver of the Group's growth in China. ”
During the 4th China International Consumer Products Expo (hereinafter referred to as the "Expo"), Chen Liyi, Executive Vice President of Asia Pacific and Acting General Manager of Coty, a global perfume and beauty giant group, said in an interview with The Paper: "China is an extremely important market for us, and we will continue to cultivate it. ”
Coty's booth during the Expo. The Paper reporter Qin Sheng pictured
Founded in Paris in 1904, Coty is one of the world's largest fragrance houses, offering a wide range of products and iconic brands in fragrance, makeup, skincare and body care. Coty's premium and mass beauty products are sold in approximately 125 countries and territories around the world.
This is the third time that Coty has participated in the Expo, and Coty has brought its eight iconic brands, including high-end beauty brands Gucci and BURBERRY, high-end fragrance brands Chloé, Tiffany & Co, Calvin Klein, Marc Jacobs and Hugo Boss, as well as high-end skincare brand Lancaster. With the theme of "Garden of the Future", the Hugo Boss Haute Couture collection made its debut at the Expo, and an interactive area was also set up for visitors to experience and try out.
From a global perspective, Chen said that fragrance is Coty's strength, and the brand matrix is very well prepared, and fragrance will continue to be a growing category in the future. The makeup part, such as Burberry and Gucci makeup, is also very popular with Chinese consumers and will continue to increase.
According to the latest results, Coty has exceeded expectations for 14 consecutive quarters. Sales for the second fiscal quarter of fiscal 2024 (ending December 31, 2023) were $1,728 million, up 13% year-over-year (year-over-year), and adjusted net profit attributable to owners was $229 million, up 19% year-over-year. Operating income for the first half of fiscal 2024 was $3,369 million, up 16% year-over-year, and adjusted net profit attributable to owners was $303 million, up 7% year-over-year. Specifically, in the first half of fiscal 2024, sales in the high-end beauty division were $2.187 billion, up 20% year-over-year, accounting for 65% of total sales, and mass beauty sales were $1.182 billion, up 8% year-over-year, accounting for 35% of total sales.
Coty Group's results for the second quarter of fiscal 2024
Coty Group's results for the second quarter of fiscal 2024
"We are very confident in our China business, which accounts for the largest proportion of the fragrance category, and the three major business segments of fragrance, makeup and skin care are all growing. Chen Liyi said that the Hainan travel retail business, in particular, has become another major driving force for the growth of the group's business in China.
In terms of performance in China, the financial report pointed out that Coty's premium business revenue increased by double digits in Chinese mainland in the first half of fiscal 2024. Coty Hainan Travel Retail also continued to climb, growing 70% for the full year of FY2023. Coty's Asia-Pacific travel retail business also saw double-digit growth in the second quarter of fiscal 2024.
In recent years, the travel retail business has become a key channel for Coty to continue to gain global market share, and Hainan has remained an important market for the Group to grow this business. Relying on the substantial construction of the Hainan Free Trade Port and the promotion of favorable policies such as offshore duty-free and customs closure, the beauty and travel retail market is ushering in a blowout development.
Over the past year, Coty has continued to upgrade its travel retail business in Hainan, including expanding its offline duty-free retail channels and exploring the duty-free market for new product launches. On the one hand, last year, Coty's high-end beauty brands accelerated their entry into the Hainan market, opening five new high-end boutiques. On the other hand, the Group has also taken Hainan as the first place for new products in the duty-free market, such as the Hugo Boss Collection high-end fragrance collection debuted at CDF Sanya International Duty-Free Mall, and its perfume counter is currently the only store in China's duty-free channel where you can experience the Boss Haute Couture selection fragrance series offline.
For the hot tide of domestic products in recent years, Chen Yili said that competition is very good, which can help all brands, whether domestic or foreign, to learn from each other, learn from each other's strengths and make progress together. I have also seen that there are many domestic brands that are also doing well, and I am proud of them.
"I'm not a big fan of pitting international brands against domestic brands, in my opinion it's a big market, full of opportunities, although there are also many challenges, but the opportunities are more obvious. I think you can blur the boundaries between home and abroad and not think about borders too much. Chen Yili emphasized that competition should be diverse, rather than relying on national boundaries to differentiate, and the long-term, long-term and futuristic sense of the brand is the most important.
"China's beauty market is very important in the global arena, and this position will not change. Talking about the strategic layout of the Chinese market in the future, Chen Yili said that the layout of the three major areas of perfume, makeup and skin care products in the Coty matrix is highly suitable for the Chinese market and will continue to cultivate the Chinese market. ”