Core Insights - The cosmetics industry is experiencing a significant downturn, with many brands being sold or shut down rather than achieving sales success during promotional events [1][22] - Over 50 beauty brands have been categorized as "abandoned" this year, with notable examples including L'Oréal, Estée Lauder, and Unilever [1][5] - The trend indicates a shift from large-scale brand coverage to a focus on optimizing brand portfolios among international beauty giants [8][13] Brand Sales and Closures - International beauty giants have sold over 30 brands this year, including Unilever's sale of the high-end skincare brand CeraVe and Kering's sale of its beauty division to L'Oréal for €4 billion (approximately ¥331.96 billion) [3][5] - The majority of these "abandoned" brands were acquired at high valuations between 2014 and 2020, with some, like Avon, being sold for $3.7 billion (approximately ¥263.45 billion) after struggling to perform [6][7] - In 2025 alone, 16 international brands have been shut down due to operational difficulties and strategic misalignment, with L'Oréal closing three brands [14][18] Reasons for Brand Abandonment - The primary reasons for brand sales include the need for international beauty companies to streamline operations and focus on profitable segments, as seen with Unilever's efforts to make CeraVe profitable [7][18] - Many brands are facing challenges such as declining performance, increased marketing costs, and the inability to adapt to market demands, leading to closures [21][27] - The trend of brand closures is not limited to international brands; domestic brands are also facing similar pressures, with eight brands shutting down in 2025 due to strategic adjustments and profit pressures [23][26] Market Trends and Future Outlook - The industry is witnessing a shift towards strategic restructuring and value rediscovery rather than mere expansion, indicating a potential ongoing consolidation phase [13][32] - The focus is now on leveraging technology and innovation to create competitive advantages, with companies encouraged to find niche markets and enhance product offerings [31][32] - The ongoing challenges suggest that the beauty industry will continue to experience a wave of brand eliminations, with survival dependent on strategic adaptability and resource management [22][32]

Core Viewpoint - Coty Inc. is undergoing a significant strategic restructuring, focusing on a comprehensive evaluation of its mass beauty business to maximize long-term value and optimize asset allocation [1][2] Group 1: Business Overview - Coty Inc. was founded in 1904 in Paris and operates a range of iconic brands across fragrance, makeup, skincare, and body care, selling in over 120 countries [2] - The mass beauty segment, valued at $1.2 billion, includes brands such as CoverGirl, Rimmel, Sally Hansen, and Max Factor, with a nearly $400 million revenue contribution from Brazil [2][3] Group 2: Financial Performance - For the fiscal year ending June 30, 2025, Coty reported net revenues of $5.893 billion, a year-over-year decline of 3.68%, and a net loss of $381 million, compared to a profit of $76.2 million in the previous year [4] - The mass beauty segment experienced a revenue drop of 8% year-over-year, generating $2.073 billion in the same fiscal year [4][5] Group 3: Market Challenges - The mass beauty business has faced ongoing challenges, including a significant decline in the U.S. market, exacerbated by retailer inventory reductions and overall market pressures [4][5] - Coty has recorded a continuous decline in mass beauty revenues over four consecutive quarters, with Q1, Q2, and Q3 revenues of approximately $555 million, $554 million, and $470 million, respectively, reflecting year-over-year decreases of 3%, 8%, and 9.4% [6] Group 4: Organizational Changes - Coty is implementing organizational changes to integrate its high-end beauty and mass fragrance businesses, which together account for 69% of the company's sales [3][4] - The company has appointed Gordon von Bretten as president of the mass beauty division to explore potential in mass cosmetics, skincare, and personal care, while leading the strategic review [6]