Core Viewpoint - A wave of brand sell-offs is sweeping through the beauty industry, driven by major companies facing performance pressures and a need to restructure their brand portfolios [2][3][6]. Group 1: Brand Sell-Offs - Coty is reportedly exploring the sale of several brands, including Gucci and Burberry, amidst market speculation [2]. - Kenvue, a spinoff from Johnson & Johnson, is also rumored to be considering the sale of its skin health and beauty division, with an estimated transaction value exceeding $500 million (approximately 3.59 billion RMB) [2]. - Natura & Co has been linked to ongoing rumors about selling Avon since last year, highlighting a broader trend of divestitures among beauty giants [2][3]. Group 2: Market Reactions - Despite the sell-off rumors, Coty's stock surged by 13% in a single day, reaching a three-month high, indicating a positive market reaction to the restructuring news [3]. - The performance pressures faced by these companies are evident, with Coty's mass beauty segment reporting a 9% decline in net revenue to $470 million (approximately 3.4 billion RMB) in Q3 of fiscal 2025 [8]. Group 3: Industry Trends - The beauty industry is experiencing a significant contraction, with Kenvue's skin health and beauty division reporting a 7.3% year-over-year sales decline in Q1 2025, the largest drop among its business segments [6]. - The Chinese market is reshaping the competitive landscape, with domestic brands capturing a growing market share, accounting for 55.2% of total sales in 2024, up 2.9 percentage points year-over-year [11][24]. Group 4: Strategic Shifts - Major beauty companies are shifting from aggressive acquisition strategies to a focus on efficiency and value, as evidenced by their divestiture of underperforming brands [19][21]. - The trend reflects a broader industry consensus that emphasizes streamlining brand portfolios and concentrating on core assets to enhance competitiveness [19][26]. Group 5: Future Outlook - The ongoing sell-off trend is expected to continue as companies adapt to the compressed industry cycle and intensifying competition [26]. - The future of the beauty industry will likely revolve around establishing competitive advantages in areas such as cutting-edge biotechnology, unique ingredients, and robust consumer data operations [26].

Core Insights - The event "2025 9th China Listed Company Brand Value List Release Conference" was held in Shanghai, focusing on the theme "Digital Intelligence Upgrade, Brand Resonance" [1] - Mathieu Dufresne, General Manager of Coty China, shared insights on localization strategies in the Chinese market, emphasizing the need for deeper connections rather than mere adaptations [2][3] Localization Strategies - Localization should go beyond simple adaptations like translating marketing materials; it should focus on creating connections with local consumers [2][3] - Dufresne highlighted three effective methodologies for localization: finding connections between brand spirit and local culture, establishing emotional resonance, and leveraging local ambassadors to drive consumer engagement [3][4] Emotional Engagement - Coty's approach to localization involves creating spaces that resonate emotionally with consumers, such as the opening of the first limited-time bookstore for the Chloe brand in China [4] - The company emphasizes emotional resonance as a key to building brand value and trust in the local market, rather than relying solely on traditional brand promotion [5][6]

Core Insights - The event "2025 China Listed Company Brand Value List Release Conference" aims to explore brand elevation paths amid digital transformation, emphasizing the role of international brands in enhancing consumer experience and stimulating market vitality in China [1][9] - Coty, a global beauty company, has been actively expanding in the Chinese market, representing a successful case of foreign brands growing alongside China [1][9] Company Overview - Mathieu Dufresne, the General Manager of Coty China, has extensive experience in the beauty and fragrance industry, focusing on understanding the evolving Chinese consumer landscape and enhancing brand influence [6][7] - Under Dufresne's leadership, Coty is prioritizing high-end fragrance product development, digital engagement, and retail expansion to achieve growth in the competitive Chinese beauty market [6][7] Market Dynamics - Coty's financial report for the first half of fiscal year 2025 shows a net revenue of $3.341 billion (approximately 24.1 billion RMB), with a year-on-year growth of 2%, driven by the performance of high-end and mass fragrance segments [9] - The global beauty market is experiencing slower growth compared to previous years, but fragrance products are outperforming other categories, indicating resilience in this segment [9][10] - The Chinese fragrance market, characterized by low penetration, is becoming increasingly competitive, with both international and local brands vying for market share [9][10] Strategic Approaches - Coty has developed three effective methodologies for localizing its brand in China: connecting brand spirit with local culture, creating emotional resonance, and leveraging local ambassadors to drive consumer engagement [7][8] - The rise of domestic beauty brands and changing consumer preferences pose challenges for international high-end beauty brands, necessitating a shift towards localized competition strategies [10]