According to McKinsey, the luxury and ultraluxury beauty industry might treble by 2027, from USD 20 billion to USD 40 billion, therefore the beauty and fragrance behemoth unveiled many premiumization projects.
Given the success of its Prestige segment, Coty plans to adjust its offer to market structural changes, notably in perfumery, where customers increasingly choose longer-lasting and more expensive goods.
“Against this backdrop, we continue to grow the fragrance category and premiumize our business through our portfolio of icons and leading launches, such as Burberry Hero and Her, Gucci Flora Gorgeous Jasmine and Gorgeous Gardenia, Boss Bottled Parfum and Chloe Atelier des Fleurs,” said Sue Y. Nabi, Coty’s CEO, commenting on the company’s latest operating results.
New luxury fragrances
In May, Coty announced the introduction of Infiniment Coty Paris in 2024, a high-end fragrance line that will be to scents what Orveda is to skincare. The business called it its “most ambitious and most premium fragrance project.”
The fourteen-scent collection, which Coty claims is a first, has formulation and packaging patents.
“Infiniment Coty Paris is a creation that marks a natural progression for the company, fusing beauty, science, and art,” said Sue Y. Nabi, promising more in the coming months.
Target premium buyers.
Coty has the brands like Gucci, Chloé, Burberry, and Miu-Miu to match the need of customers who are trading up and spending more on luxury items, notably fragrance and beauty.
Despite leaving Russia, Coty’s third-quarter revenues rose 9%. Prestige expanded 10% and earned 102.4 million dollars, up from 83.8 million the year before. 62% of group activity is now it.
The company plans to use momentum in its core operations and good savings to power its skincare business, the next important pillar in its strategy, again targeting the top of the category.
“While we are in the very early stages of igniting our focus skincare brands, I am encouraged by the positive initial signals we are tracking, whether it is leading social buzz and product reviews for Lancaster Ligne Princière, or step-changes in philosophy’s sales fuelled by its new brand equity and newly launched serum, dose of wisdom,” said Sue Y. Nabi.
Orveda’s new OmniPotent Concentrate launch follows the same concept of testing greater market expectations.
The business, which is listed on the New York Stock Exchange, revealed in May that it was contemplating a second listing in Paris to boost its footprint in Europe and attract new investors.