Poo-Pourri goes viral with new music video
Coty announces planned restructuring ahead of P&G specialty beauty merger
NEW YORK — Coty on Wednesday announced a new leadership structure that will go into effect once the company’s merger with Procter and Gamble’s specialty beauty business.
“The new Coty will bring together a very experienced and diverse executive team, skilled at managing complex global consumer operations, and driving innovation, creativity and growth, all of which are a prerequisite for future success,” Coty’s chairman and interim CEO Bart Brecht said.
The new structure divides the company into three divisions: Coty Luxury, focusing on fragrances and skin care; Coty Consumer Beauty, focusing on color cosmetics, body care and retail hair color and styling products; and Coty Professional Beauty, aimed at helping professionals and salon owners with nail and hair care needs. The company is also launching a Growth and Digital department that will work with all three divisions to build up innovation, sales and marketing. Each division will be run by a president and be overseen by an executive board made up of the presidents, CEO and functional heads.
Coty’s executive offices will relocate to London as part of the restructuring, and the company has announced the following staff changes, with Brecht continuing to serve as chairman and interim CEO, Patrice de Talhouët continuing in his role as CFO, Jules Kaufman staying on as chief legal officer and secretary and Ralph Macchio continuing as the company’s chief scientific officer:
- Camillo Pane will serve as chief growth and digital officer, advising on Coty’s portfolio strategy anf overseeing digital media and e-commerce, as well as the three divisions’ marketing and sales capabilities;
- Edgar Huber, who has 25 years’ industry experience, including 15 years at L’Oreal that were spent largely in its Luxury Products division, will serve as president of Coty Luxury;
- Esi Eggleston Bracey — currently P&G’s EVP global color cosmetics, overseeing its Covergirl and Max Factor ventures — will be president of Coty Consumer Beauty, relocating to New York from Geneva when the merger is complete;
- Sylvie Moreau, P&G’s current EVP of salon division Wella, will be president of Coty Professional Beauty and will remain in Geneva following the transaction’s completion;
- Mario Reis, who most recently worked in global operations at Danone for 16 years, will oversee Coty’s supply chain, as well as procurement, warehousing, distribution and manufacturing as Coty’s chief global supply officer, based in Geneva; and
- Sébastien Froidefond will be Coty’s chief human resources officer, and will transition from Paris to London.
“This deeply experienced team combined with the new category-focused and consumer-centric structure, and our portfolio of world-class brands, are all expected to play key roles in making Coty a strong global leader and challenger in Beauty and driving profitable growth and shareholder value over time,” Brecht said.
Coty also announced the retirement of Jean Mortier and named Edgar Huber his successor as president global markets, effective immediately. Mortier will remain a consultant for Coty unilt June 2016, helping with transitioning roles, licensor relationships and P&G licenses, as well as helping restructure the two companies and distributor relationships.
The merger is expected to close in the second half of 2016.
What’s Next: Beauty and the digital age
Beauty retailers are not blind to the limitless potential of technology. Retail technology is a two-part endeavor of determining who the consumer is through a digital footprint and creating an end-user experience that caters to a consumer’s desires. The Digital Revolution conference at Makeup in New York educated participants about the newest ways that the beauty industry has tailored and adapted technology to suit its customers and its needs.
Worldline E-Payment Services is the company responsible for taking one of the world’s most recognizable brands and reinventing it in the European market. They transformed McDonald’s France by turning it into a fascinating digital experience of flashy touchscreens and mobile interactions. On the surface, it is a new age restaurant that barely resembles its former self, but the digital reformation runs much deeper than that.
“The purpose is to know who you are and what you are doing, so we can predict what you will do,” Worldline’s business development manager Julien Decoster said. Those quick clicks and easy apps aren’t just about delivering customer service, it’s about the aggregation of data and creating a cycle where a retailer can sell to you again … and again. Decoster explained several new technology trends during his presentation about how this end is being achieved:
- The store as a showroom It used to be that a store was where you went to buy things. Now, multiple devices create a non-linear path to sale that retailers need to understand and embrace. Who has the best deal? Apps involving bar codes allow a competitor to steal the dollar and the customer right from under your nose … without them even leaving your store. According to Wordline, 81% of smartphone users have done product research from a smartphone.
- The seamless digital experience The new selling cycle is a seamless one where the end of one sale is the beginning of another through a process involving personalized marketing, targeting the service or product in relation to the customer’s budget and managing the delivery of services while integrating the purchasing data.
- Rich digital signage and kiosks The new retail set up is rich with opportunities for digital interaction. Not only do digital displays attract and engage customers, they are the perfect way to collect information on customers and eventually monetize that data. They also can create digital catalogs to expand a retailer’s offerings beyond the walls of their store.
There are several advances in technology expressly for the beauty consumer. Jing Wang of Fung Business Centre gave an update on the latest digital innovations in beauty and skin care. In her presentation, she cited the following as some of the most compelling advances in digital beauty:
- Facial mapping and virtual try-ons 2-D and 3-D facial simulations allow consumers to try on hair colors and cosmetics through their smartphones.
- Hi-tech color matching In-store and smartphone color match technologies mean a woman never again has to struggle to match her foundation. Pantone has teamed up with Sephora to develop “Color IQ” and Iman Cosmetics offers a “Color Signature.” These apps offer the customer recommendations tailored to their skin.
- The smartphone consultant Smartphone apps conduct skin analysis and perform cosmetic testing. The Allure + Skin Better app uses dermatologist grade scanning technology to identify skin issues and make product recommendations.
- Social media selling Social media stars consistently out-pace branded social media. Estee Lauder dramatically boosted their following on Instagram by enlisting Kendall Jenner as a brand ambassador, going from flat-lining performance to hundreds of thousands of new followers. YouTuber Tanya Burr recently scored the cover of Glamour magazine. Social media stars are catching up to the traditional model/actress in terms of coveted endorsement deals.
- Genetic testing for customized treatments A simple mouth swab is all it takes to provide a DNA analysis for a personalized anti-aging treatment regimen. Geneu Skin Care Lab in London offers skin profiles to customers based on DNA analysis.
What’s Next is a weekly feature of Drug Store News, written by consumer beauty blogger Lonni Delane. The goal is to help give beauty merchants the cutting edge they need to stay ahead of the latest and greatest beauty trends.