Coty''s sales grow in Brazil

After investing more than $15 billion on acquisitions since 2015, Coty, founded 113 years in Paris, is a new company, in the words of the world CEO Camillo Pane. There are many difficulties to integrate the 43 beauty marks that purchased from Procter Gamble world &, the company faces drop in sales. But at least in Brazil the company is growing, says the Executive, who interrupted his vacation to check out the operations commanded by Nicolas Fischer.
The incorporation of the brands purchased Hypermarcas is complete and, with it, the business in Brazil gave a jump. According to data from Euromonitor International, the Coty went from 0.5% of the Brazilian market of health and beauty, in 2015, to 4.3 percent last year. In the ranking of the largest in the industry, she left the 16th position to eighth in sales.
The fact that Fischer, who worked at Hypermarcas, have been hired to preside over the Coty in Brazil, helped. He now is closing the cycle of adaptation to new company profile: Wella hair dye, imported from Mexico, will begin to be produced in Brazil soon. For this, R$ 80 million were invested in the plant in Senador Canedo (GO).
"In Brazil the business is going well, grows above the market in almost every category," says Pane, in fluent Portuguese. Born in Italy, he lived in São Paulo from 2001 to 2003, when he worked at a subsidiary of Reckitt Benckiser.
The Coty acquired the cosmetics business Hypermarcas in 2015, by 3.8 billion, adding to the R$ portfolio glazes Risqué, beard and hair products Bozzano and the moisturizers Monange and Passion, in addition to the factory in Goiás. In the same year-and after having tried to buy Avon, unsuccessfully, in 2012-Coty has announced the purchase of global brands P&G beauty for $12.5 billion.
In Brazil, the recession, nearly three years ago, made the middle class losing jobs and income. With that, most affordable prices gained more space in the home of Brazilians. In this scenario, the sales of Coty, in particular of its popular brands, grew up. The shampoos and conditioners Monange, for example, had above-average expansion of the market, which remained stable last year.
In the World In global operations, the integration of the P&G portfolio of Coty walks more slowly. "It''s a complicated process, difficult," says Pane. He says that sales in the category of "luxury"-with scents like Gucci and Calvin Klein, for example, that the Coty sells under license-show some recovery. The market of products for salons. But, "in the mass segment we''re going to take to have a successful integration and change the direction of the brands," says Pane.
The Commission notes that the marks of P&G, which were on sale, were "orphaned" before being purchased by Coty. The P&G, the largest consumer goods company in the world, was, of course, with the focus on other products to your portfolio.
The challenge of Coty''s just make a turn in an environment in which smaller brands are conquering space and an increasing number of consumers are buying over the internet.
In the second fiscal quarter, ended in December 2016, the adjusted net revenue declined 7% to $2.3 billion. In the year, net revenues reached $9 billion. To reverse the trend of falling revenue, the company has established four principles: reposition part of trademarks; change the process of innovation and product development; speed up internet presence; and improve the sales process in store.