Coty shakes up China business

Beauty company Coty is reorganising its strategy in the world’s second largest economy.

It has teamed up with Hong Kong-based Li & Fung to accelerate the expansion of its brands in China.

The agreement represents a shift in Coty’s go-to-market strategy for brands sold through the mass distribution channel in China, by allowing Coty to leverage Li & Fung’s broad distribution network in that channel.

Coty will oversee development, production, marketing and brand building activities, while profiting from the strong go-to-market capabilities of Li & Fung.

It will also discontinue the TJoy brand to focus on the international power brands that have more growth potential in China.

“We expect our partnership with Li & Fung to accelerate the expansion of some of our international brands in the mass channel, strengthening Coty’s position in this fast growing market,” said Coty CEO Michele Scannavini.

“LF Asia is uniquely placed to give Coty’s power brands access to the Chinese consumer and throughout our network in China,” adds Gerard Raymond, senior executive at LF Asia, a business unit of Li & Fung.

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