After growing up with acquisitions, Coty search more space in deodorants

The French multinational Coty won musculature in the Brazilian market with the purchase, a little over two years, of 43 brands of Procter and Gamble Division & cosmetics Hypermarcas. Deadpan participation until then, became the eighth largest manufacturer of beauty and personal care products in the country in 2016, according to research firm Euromonitor. In 2017, according to your global President, Camillo Pane, the company grew more than double the market. The expansion of the sector was of 2.7%. "The Brazilian retail sector is among the top five in the world," he said. With sales in about 150 countries, Coty has annual sales around $ $9 billion. In Brazil, the priority now is organic growth, but new purchases are not discarded. The acquisitions were essential for the multinational become leader in various sectors in the country. Is the largest manufacturer in Nail Polish, with 30 percent of the market, with the trademark Risqué, which belonged to Hypermarcas (Hypera Pharma now, focusing on drugs) and is also first in men's care, with Bozzano. With Koleston, Soft Color (which were P&G) and Biocolor, occupies the second place in hair dye, the same position it holds in body moisturizers with Monange and Passion. The data is from research firm Nielsen. After gaining more weight in the Group's sales, the brazilian operation became relevant in the development of products. In March, the Coty transferred to Barueri, São Paulo, your global research centre of deodorants. The unit was in New Jersey, in the United States. "We take care from the fragrance until the packaging. In addition, we have an area of innovation that conversation with 20000 consumers per year. With this structure we have more agility to launch products and are sure that the acceptance will be good, "said Nicolas Fischer, who runs the retail business of the brazilian subsidiary. The main brands of deodorant sold by Coty are Monange, Bozzano and Adidas. Are also produced here Contouré lines, and Tres Marchand. The deodorant market moves some R $10 billion per year. According to data from Nielsen, the country responds by eating one every five units of product sold in the world. Another survey, of Mintel, indicates that the Brazilian uses about four times more the product compared to the populations of Germany, the United States and France. To speed up the expansion in this segment, especially with Monange, Bozzano and Adidas, Coty has adopted a more aggressive posture. On sales leadership are Unilever, with Axe, Dove, Rexona and soft (in 2016, the market share was 45.8%, according to Euromonitor) and Beiersdorf, owner of the Nivea, which owns 14.8%. Among the competitors are still Fresh, Apothecary and Avon. In 2016, the share of Coty was 2.7%. "The recasting of Monange with lowest price positioning in 2016, helped the brand achieve growth above the market average. In this context, Avon also had a good performance, favoured by consumers who have switched to more expensive brands to other more accessible, "said Alexis Frick, Manager of research at Euromonitor. The Coty reports, without citing percentages, which is the third largest manufacturer of deodorants in the country according to data from Nielsen. In the category of glazes, Coty made the first move to make the Risqué an international brand to start exports of products to Argentina. "The neighboring country is the second largest market of nails in Latin America, with 22% of sales, according to data from Nielsen," said Fischer. Executives are aware of the business opportunities in the region and made it clear that other Brazilian brands in the portfolio have the potential to be exported, without revealing what are the candidates. Pane said it's too expensive to make a release like this, so you need to be sure of success and profitability. The President of Coty expects the Brazil reach political stability and has a new phase of economic growth this year. "Regardless of the turbulence, we keep the plans to invest in Brazil". Restrained to speak in numbers, the Italian, who served for 20 years at Reckitt Benckiser does not reveal values about the operation. Asked whether the Coty still has interest in Avon-in 2012 the company made an offer of $ $10 billion for the American cosmetics manufacturer-Pane chose to evade. Said your direct sales operation is the Younique, purchased in 2017 and that online retail in ten countries. In 2012, the Coty arrived to study the purchase in Brazil of Jequiti, Silvio Santos group, but the deal did not advance.