Posted on Jul 2, 2020 at 11:41 a.m.Updated on Jul 2, 2020 at 1:12 p.m.
Coty found his footing and shook up the world of beauty. The American cosmetics group has just appointed a woman, Sue Y Nabi, the former president of Lancôme, as general manager. She will succeed in September Peter Harf, founder and partner of JAB Investors, the Reimann family holding company, owner of Coty. The latter, who assured the transition to the head of the group for a few months, will become its president, and “will work closely with Nabi to lead the transformation of Coty”.
With this appointment, Coty creates a surprise. First, because she is the first woman appointed to this level of responsibility among the global beauty giants. Then, because he is an atypical personality, already well known in the sector. Sue Y Nabi has had a long career at L’Oréal, the world leader in cosmetics. Joining the group in 1994, she joined Gemey, before managing L’Oréal Paris, then in 2009 Lancôme, the first world luxury brand, which she managed to revive, before resigning in 2013. We owe her the famous slogan “because we are worth it” at L’Oréal Paris, or the campaign with Jane Fonda, then aged 68. Another success linked to that known as the diva, the launch of the fragrance “La Vie est Belle”.
Sex change
A rich professional career, therefore. His personal journey is just as important. The new leader has never hidden her fight which led her to change her sex. Born Youcef, in Algeria in 1968, she became a woman in the 2000s at a time when these choices were hardly accepted. With this appointment, Coty killed two birds with one stone, by recruiting a beauty pro and a personality in tune with the times, at the time of debates on diversity and inclusion.
For Coty, this is a key step in its transformation. The group, which saw its turnover plunge 8% during its last financial year (to 8.6 billion dollars), has decided to refocus on its perfumes activity, of which it is the world number one, skincare and makeup.
For this, the American announced in May the creation of a 40/60 joint venture with KKR to house its professional hairdressing division. With hair care Wella, Clairol hair color and OPI nail polish, making it the world number two in the sector. Links will persist in terms of skills between the two companies. Coty’s resources will therefore be devoted to its luxury products, such as its Gucci or Hugo Boss license, which are doing well. The division linked to the large distribution is in difficulty and seeks to renew itself. “Sue is recognized as a visionary leader, an innovator whose extraordinary creativity and unique inspirations are celebrated by the Beauty industry,” said Peter Harf.
Target young generations
To relaunch, Coty is betting on the young generations. To this end, a few days ago, he took a 20% stake in the beauty activity of the reality TV icon, Kim Kardashian West. A $ 200 million transaction, which follows another strategic acquisition in January, with the acquisition of 51% of the capital of the brands of Kylie Jenner, the half-sister of Kim Kardashian West. The deal amounted to 600 million. Because the two half-sisters, stars of social networks, do not have the same audiences. If the first appeals to customers aged 25 to 30, Kylie recruits her fans from 15 to 25 years old.
In a few months, Sue Y Nabi will unveil her priorities for the group, in order to better stick to the evolving trends. After leaving L’Oréal, the former CEO of Lancôme created in 2014 in London, Orveda, a luxury vegan skincare brand. Again, one step ahead of the market. His mission to straighten Coty is complicated. The group has been in difficulty since the integration of P & G’s beauty activity in 2016. It has changed CEO four times in less than four years.
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