Coty Partners with GDF Plaza to Launch 618 Mid-Year Promotion

American beauty giant Coty has joined hands with Hainan Development Holdings-owned Global Premium Duty Free (GDF) Plaza（which is later referred to as GDF Plaza）to launch a limited-time pop-up store called "Fragrance Traveler" and a range of promotions for "618 COTY Brand Week". In the context of the explosive growth of the Chinese fragrance market, Coty, which has been in the Chinese market for 26 years, has been revitalized. It is worth mentioning that strengthening the high-end beauty division in China is one of the company's long-term development strategies.

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According to oIBP, the Chinese fragrance market achieved a 14.9% annual compound growth during 2015-2020 and is expected to reach 22.5% in the next five years. By 2025, the retail sales of the Chinese fragrance market are expected to climb to $4.5 billion. In contrast, the global fragrance market will enjoy a 7% annual compound growth rate over the next five years to reach $64.3 billion. The comparison shows that the growth rate of the Chinese fragrance market will be about three times that of the global market in the coming years.

In fact, the Chinese perfume market, which has shown explosive growth in recent years, has attracted global cosmetics giants such as L'Oreal group, Estee Lauder and Puig to come and contend for market share. Apparently, Coty, which is famous for its perfume business, is one of them.

Recently too further promote the rebound of consumption after COVID-19, Coty teamed with GDF Plaza to launch a limited-time pop-up store called "Fragrance Traveler" and a series of promoting actions for the "618 COTY Brand Week ".

CHAILEEDO observes that the pop-up store was officially set up in Haikou, China, on June 10, China Standard Time, and will remain open for the next 20 days. In addition, four high-end perfume brands of Coty, including BURBERRY, Chloé, MARC JACOBS and Miu Miu, will collectively appear in the store.

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.

In addition to the pop-up store, Coty also launched a series of promotions for 618, the Chinese Mid-year Shopping Festival, which involve brands such as BURBERRY, GUCCI, Chloé, Tiffany, Calvin Klein, MARC JACOBS, Hugo Boss, Miu Miu, Lancaster, Bottega Veneta.

According to the observation from CHAILEEDO , the fragrance and cosmetic products of the above 10 brands are enjoying a 65% discount on two pieces. Taking specific product,s for example, the combination of GUCCI Sérum De Beauté Fluide Soyeux and BURBERRY Her Eau de Toilette is priced at $95 aftera discount.

CHAILEEDO also found that the high-end perfume is the category that Coty is currently focusing on in the Chinese duty-free channel and even the entire Chinese market.

Otherwise, according to the Q3 FY2022 results report of Cot , the Chinese market performed strongly in the reporting period, although the control measures of COVID-19 put pressure on sales in March. Specifically, the high-end beauty business achieved double-digit sales growth, with high-end fragrance sales accounting for 10% of total global sales of the fragrance category.

In fact, Coty has been in the Chinese market for 26 years, but its history of development is not as successful as expected. CHAILEEDO learned that Coty lost the opportunity to capture the Chinese cosmetic market when it sold YUE SAI to L'Oreal group because it was not optimistic about the Chinese market.

Six years later, Coty acquired a majority stake in TJOY and returned to the Chinese market. This acquisition not only failed to allow Coty to enter the Chinese market successfully, but also dragged down the company's performance. In June 2014, Coty announced that it would stop selling the products of TJOY. A year later, the founder of TJOY bought the brand back from Coty.

But the two failures didn't make Coty give up on China, a cosmetic market with hugegrowth potentialh. In 2017, Philosophy, the skincare brand of Coty entered Tmall, thus officially landing on the Chinese market. In the same year, the company also took back the Chinese agency rights of BOURJOIS, Max Factor, Gucc,i and Hugo Boss and unifiedthem witho Coty Trading (Shanghai) Co.

In April last year, Coty announced the group's long-term growth strategy, which includes strengthening the high-end beauty division in the Chinese market. What’s more, the company expected to triple its sales in China to more than 10 percentbyh fiscal years 2025. Four months later, Coty officially announced a partnership with Chinese beauty agency Lily & Beauty. It was reported that the company would provide refined operation services for the high-end beauty brands of Coty, such as Burberry, Marc Jacob,s and philosophy.