Coty Invites Celebrity Cheng Xiao to visit Hainan flash store
- Chaileedo Press
- Jul 2, 2022
- 3 min read
"Fragrance Traveler" experience officer Cheng Xiao(over 12 million followers on Chinese social platform Weibo) was invited to attend the "Fragrance Traveler" limited time store launched by Coty's Asia Pacific travel retail business unit and GDF Duty Free City.
According to the observation from CHAILEEDO, Coty is a world leader in beauty and home to an illustrious roster of cosmetics. To fit the theme of the pop-up store, Coty has decorated it with balloons, which represent the fragrance brands that have crossed the ocean to Haikou, China. Furthermore, to provide consumers with a unique shopping experience, the company launches a nameplate customization service and a branded ribbon customization service. The brands participating in the pop-up store include Chloe, Burberry, MARC JACOBS, MIU MIU and other four fragrance brands.
Earlier this year, Coty Group reported its results for the second quarter of the fiscal year 2022, which ended December 31, 2021. In the second quarter, Coty reported net revenues of $1.58 billion, up 12% year-over-year, driven by growth in its two business segments: high-end beauty and mass consumer beauty. For the first half of the fiscal year 2022, Coty's net income was $2.95 billion, an increase of 16 percent year-over-year.
In the second quarter, Coty's premium beauty division reported net revenues of $1 billion, representing 64% of Coty's sales and a 12% increase over the prior year. On an LFL basis, the Premium Consumer segment achieved strong net revenue growth of 12 percent, driven by strength in all regions including most EMEA markets, travel retail, China and the U.S., where market growth continued to rebound.
In the second quarter, sales of fragrances in the High-end Consumer segment continued to grow at a double-digit rate, with strong growth from brands such as Burberry, Gucci, Marc Jacobs and Chloe, according to the report.
It is worth noting that Coty's key innovations, notably Gucci Flora Gorgeous Gardenia and Burberry Hero, also continued their strong sales performance and were the best-selling fragrance innovations in their key markets, with the former ranking in the top 7 on the Tmall channel in China last December. Meanwhile, its fragrances business showed strong double-digit growth in China during the quarter.
According to Euromonitor, the Chinese fragrance market is expected to grow at a CAGR of 14.9% between 2015 to 2020 and 22.5% over the next five years with retail sales in China reaching $4.5 billion by 2025. The global market will grow at a CAGR of 7% over the next 5 years and will reach $64.5 billion in 2025. The comparison shows that in the next few years, the growth rate of the Chinese market will be about three times that of the global market, with huge development potential.
Eternal Group said in its White Paper on 2021 China Perfume Industry Research that high-end perfumes are the main force for growth in the Chinese perfume market, with the market share rising year by year, from 70% in 2015 to 91% in 2020.
For the COTY perfume category, COTY Group China General Manager introduced that the current COTY Group perfume brand portfolio is balanced and diversified.
As for high-end brands, two brands Gucci and Burberry have been performing well in China. In addition to conventional products, both have high definition lines such as Gucci Fading Autumn Scented Water series, Burberry Classic series, which are more popular in the market. In the high-end niche market, represented by Chloe, the brand's new series name is Wonderland Garden. The whole theme of the fragrance is flowers, which is favored by many young women. It enjoys the great potential for development. As for the designer brand perfumes, such as Miu Miu and Tiffany, are all exclusive with Sephora in China and basically also maintain a growth rate of two to three digits. As for lifestyle perfume brands, there are CK and Marc Jacobs perfumes. In the mass market, there are also Adidas sporty perfumes to choose.
From this point of view, Coty invited Cheng Xiao as "fragrance traveler" experience officer for enhancing the group's brand image, brand value. Coty believes that in the future, China will have a stronger voice in the beauty market and will become the leader in the global beauty market leading the development of the entire beauty industry.
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