Starting July 1, Coty will directly handle import, distribution, and sales of its products in Japan. This will include products from brands such as Burberry, Calvin Klein, Chloe and Gucci.
In press statement released by Coty, Shosaku Yamamori, president and chief executive of Coty Japan indicated that the company plans to expand its portfolio in Japan.
“We look forward to introducing more exciting brands, products and experiences to reach a wider range of consumers across both our prestige and consumer beauty divisions.”
In addition to a series of iconic fragrance brands, Coty also owns brands such as Lancaster, Kylie Cosmetics, Covergirl, and Sally Hansen, to name a few.
Additionally, Coty aims to expand its distribution network moving forward.
This strategic decision better positions Coty to strengthen its business in Japan.
It will allow the company to be more agile and responsive to the rapidly evolving trends in the Japanese market, which will be crucial in the long term.
Currently, the import and sales of Coty’s prestige licensed fragrance portfolio in Japan is managed by Bluebell Japan. However, Coty Japan will terminate its contract on June 30 as it plans to take full control of its operations.
“This strategic move demonstrates our dedication and belief in the potential of the Japanese market. As we take this important next step for Coty Japan, we are extremely grateful to Bluebell Japan Co., Ltd. for their valuable partnership in our growth journey,” said Yamamori.
“Japan is known as a market that values quality and innovation, attributes that align perfectly with Coty’s diverse portfolio of iconic brands. By expanding Coty’s direct business model in this important market, we aim to strengthen the presence of our brands, deepen connections with consumers and expand Coty’s portfolio throughout Japan,” added Caroline Andreotti, chief commercial officer, prestige division, Coty.
Fragrance potential in Japan
Japan’s fragrance market presents significant opportunities for brands.
For the quarter ending September 2024, Japan was the bright spot for the Estée Lauder Companies as it reported double digit declines for Asia Pacific.
The performance was driven by the firm’s fragrance portfolio with brands such as Le Labo and Jo Malone.
According to president and CEO Fabrizio Freda, the firm gained 200 points of market share, becoming the top fragrance company in Japan.
For the quarter ending September 30, 2024, Coty reported a 2% growth in net revenue.
The growth was supported by fragrance business, which grew 6% in reported revenue. This included prestige, ultra-premium, and mass fragrances.
“One thing is very clear: consumers continue to prioritise beauty in their spending routines, even as they pull back on many other consumer segments. Within the broader beauty backdrop, fragrances remain a top performing category,” said Coty CEO Sue Nabi.
However, its performance in Asia Pacific was impacted by the difficulties in China and the region’s travel retail market.
The tough environment caused net revenues decline by 5%, signalling a need for the firm to reinforce its business in APAC.
