Coty makes partnership with company of Apothecary

The Coty, French cosmetics brand, yesterday announced a partnership with the Brazilian Frajo, based in Campinas (SP), with the objective of increasing the distribution of its products in the country. The partnership between an international giant that grossed $ 4.6 billion in the last year and a local company almost unknown has raison d ' être: behind the Frajo is the Apothecary Group, which owns 60% of the capital stock of distributor since the beginning of 2013.
The Coty currently has a small share in the Brazilian market, despite the fact that distribute their products in about 130 countries. The local partnership more relevant, for now, is with the cosmetics company of Silvio Santos group, Jequiti, which distributes some of the most popular brands of Coty by direct sale. By Frajo, present in 8.5 thousand points of sale in Brazil and distributor of brands such as Revlon and Ferrari, the idea would be to gain relevance in the country attacking the retail.
The partnership in Brazil aims to sell perfumes locally consumed by the public who travels and passes by the free shops at airports. "We will launch new brands in the Brazilian market," said Michele Scannavini, President of Coty, in a statement. The company's portfolio would have more than 100 items, including make-up and products for the body.
According to the State it was found, it wouldn't make sense to the company to get to Brazil with importing mentality, because taxes make it uncompetitive prices. Sources of health and beauty sector say the Coty intends to nationalize part of the production to be able to compete in terms of price.
The portfolio of over 60 brands of Coty is varied, encompassing items of popular appeal (Playboy and Adidas), fragrances signed by celebrities (such as Beyoncé and Sarah Jessica Parker), average price products (Calvin Klein and Guess) and symbols of luxury market (such as Balenciaga and Bottega Veneta).
Door to door. The partnership with Jequiti door-to-door market-which also includes the Playboy fragrances, Adidas, Lady Gaga and Madonna-would have been the missing push for Coty decide to come to Brazil. The good sales result showed that the local expansion potential is strong.
The products are made in local manufacturers outsourced by Jequiti, allowing the reduction of the final consumer price paid $ 89 for Glow, Jennifer Lopez perfume. According to the State it was found, Jequiti would have the right to exploit some brands of Coty in the country exclusively until 2014.
The report, requested the Frajo did not return the links until the closure of the issue. The Boticário Group declined to comment on what would be the extension of its partnership with Coty.