Major reshuffle as Coty restructures

By Kevin Rozario |

Listed beauty house Coty yesterday announced a new organisational structure, evolving its two-division format of Coty Prestige and Coty Beauty into a more integrated model built around categories and regions. The revamp involves a major reshuffle of top management.

 

The company says it will maintain prestige and mass differentiation and unique treatment in brand building, product development and sales execution where it represents a critical success factor.

 

The change is designed to reinforce the company’s growth and strengthen its position in the global beauty business by bringing a more holistic view of consumer evolution and growth opportunities by product category.

 

In fiscal 2013 (ending June 2013) Coty had net revenue of $4.65bn, only slightly up (by +1%) on the previous year – although adjusted EBITDA improved significantly to $815.7m.

 

ELIMINATING DUPLICATION

In a statement Coty says: “This global effort is also expected to improve coordination and resource allocation between channels and markets, and to increase focus on specific consumer and retailer needs of each region.

 

“Further, it will eliminate duplication, ultimately bringing operational efficiencies to help accelerate Coty’s path to profitable growth and generate additional resources to be re-invested behind Coty’s power brands and strategic markets.”

 

The new structure is as follows:

 

Categories and Innovation

This new group integrates Marketing, R&D, Communications, Digital and Consumer Marketing Insight to become the engine of strategic category and brand development. It will be led by Renato Semerari (left) as its President. Semerari was previously president, Coty Beauty.

 

All Coty brands will be housed under four consumer-driven categories: Fragrance, Skin Care, Color Cosmetics and Body Care led a chief marketing officer (CMO). Each will have dedicated teams with specific competencies to develop the prestige and mass portfolio with respect for each brand’s DNA and positioning.

 

Leaders of the four categories will be as follows:

CMO Fragrances – Steve Mormoris (right, previously in charge of Coty Prestige—American Fragrance Marketing)

CMO Color Cosmetics – Johanna Businelli (previously head of Coty Beauty—Color Cosmetics Marketing)

CMO Skin Care – Jill Scalamandre (previously responsible for Coty Prestige—Skin Care Marketing)

CMO Body Care – Jurgen Scharfenstein (previously responsible for Coty Beauty—Adidas & Lifestyle Fragrance Marketing).

 

Global Markets

This group has been created to better leverage the company’s global scale and bring stronger sales execution and will be led by Jean Mortier (left) as President. Mortier was previously President of Coty Prestige.

 

Markets will be organised under four regions: North America, Europe, APAC/MEA and Latin America, each led by a senior vice president along with dedicated management teams to steer the business according to specific consumer and retailer needs and priorities. Coty hopes this will develop a stronger global footprint.

 

Leaders of the four regions will be:

North America: Marc Rey, also President, Coty USA

Europe: Stephane Tsassis

APAC/MEA: Peggy Elsrode

Latin America: Manlio Pizzorni.

 

Travel Retail Worldwide remains headed by Philippe Margueritte who continues to report to Peggy Elsrode.  In her new capacity within the Global Markets division, Elsrode will be based in Singapore (and still heading up Travel Retail WW/Asia/Middle East/Africa).

 

Supply Chain, Finance, IT, Human Resources and Legal functions will also be reorganised to support the new structure.

 

“This evolved organization design will help us to advance our path to profitable growth,” underlines Coty CEO Michele Scannavini (right). “We will be more consumer-driven, sharper in priority setting and resource allocation, and more agile, reducing duplications and redundancies over time. We are confident that this new organisation will allow us to unleash the full potential of our brands and our talent.”

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