Core Viewpoint - Coty is exploring the possibility of splitting and selling its high-end and mass beauty divisions, which could lead to a merger and acquisition scale of hundreds of billions to trillions of yuan, potentially reshaping the global beauty industry [1][4]. Company Overview - Founded in 1904 in Paris, Coty has developed a strong brand portfolio, including luxury brands like GUCCI and Burberry, and has grown to be one of the top ten beauty companies globally [2][4]. - Coty operates over 50 fragrance and beauty brands, divided into high-end and mass segments, with high-end beauty generating 277 billion yuan and mass beauty generating 162 billion yuan in revenue for the fiscal year 2024 [1][4]. Financial Performance - Coty's revenue for fiscal year 2024 was 439 billion yuan, reflecting a 10% increase from the previous year, but the company has faced significant fluctuations in performance [9]. - The company reported a net revenue decline of 2% to 333.3 billion yuan for the first three quarters of fiscal year 2025, with a net loss of 22.2 billion yuan [9][10]. Market Dynamics - The global beauty industry is undergoing significant challenges, including market growth slowdown and increased competition from emerging DTC brands, particularly affecting mass beauty brands [4][12]. - Coty is facing difficulties in finding suitable buyers for its mass beauty division, especially in Asia, due to economic slowdowns and trade tensions with the U.S. [5][4]. Strategic Moves - Coty is in discussions with Interparfums regarding the sale of its high-end beauty business, particularly brands like Burberry and Hugo Boss, which have shown strong growth [4][10]. - The company has initiated a transformation plan aimed at streamlining operations and focusing on key business innovations, with an expected savings of nearly 36 billion yuan between fiscal years 2025 and 2027 [12]. Industry Trends - The beauty industry is witnessing a shift towards high-end and luxury products, with major players like Shiseido and Unilever restructuring to enhance operational efficiency [12][14]. - Coty’s historical capital-driven development and frequent ownership changes have influenced its current strategy to seek a sale [11][12].

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]