Sales: $4 billion.
Key Personnel: Richard R. Rogers, executive chairman; David
Holl, president and chief executive officer; Sheryl Adkins-Green,
chief marketing officer; Thomas S. Cho, chief supply chain officer;
KK Chua, president, Asia Pacific; Tara Eustace, president, Europe;
Deborah Gibbins, chief financial officer; Melina Foster Sellers,
chief people officer; Kregg Jodie, chief information officer; Darrell
Overcash, president, North America; Jose Smeke, president, Latin
America; Terry Jacks, vice president, research and development.
Major Products: Skin care, color cosmetics, body care, sun care and
fine fragrances marketed under the Mary Kay and Time Wise brand
New Products: Mineral Cheek Color Duo; Beauty That Counts
lipgloss; Mary Kay at Play Lip & Cheek stick, Baked Eye Trio, Jelly
Comments: While its direct sales competitors stumble, 2014
marked another year of double-digit gains for privately-held
Mary Kay. The company boasts 3. 5 million representatives around
the world, at a time when many direct sales companies are struggling to maintain their sales base. How? By developing product
lines such as Mary Kay at Play that appeal to Gen Y consumers,
and by offering novel anti-aging formulas to Baby Boomers via
the Time Wise collection.
Earlier this year, the company filed suit against Google
quarter of Coty’s new strategy.
“We have made excellent progress in driving profit growth
behind efficiency programs, as shown by the 24% growth in Q3
adjusted operating profits,” Becht enthused. “As our success in
this area is very good, we will be looking to increase the $200
million target for our Global Efficiency Plan.”
In fiscal 2014, sales fell 2% to $4.5 billion. Unit volume fell 3%,
but was partially offset by positive price and mix. At the end of the
fiscal year, Coty eliminated the TJoy brand and the reorganized its
mass business in China. New launches represented 15% of net
revenue during the year. The contribution from new launches was
partially offset by an approximate 16% decline in net revenues
from existing products that are later in their life cycles.
Coty calls itself the No. 2 player in the global fragrance market and fragrances accounted for 55% of sales, followed by color
cosmetics (30%) and skin care (15%).
In fiscal 2014, Coty manufactured 75% of its fragrances, with
Europe, Middle East and Africa accounting for 54% of sales, followed by the Americas (30%) and Asia Pacific (16%). Top fragrance brands by percentage of net revenues are Calvin Klein,
Marc Jacobs, Davidoff, Playboy and Chloé.
Coty says it is the No. 2 player in the global nail care segment
and “emerging leader” in color cosmetics, ranking No. 5 globally
and No. 3 in the North American and European mass market. Its
top color cosmetics brands are Rimmel, Sally Hansen and OPI.
On April 1, Coty closed the Bourjois acquisition, noting that
the firm’s strength in key European color cosmetics markets is
complementary to Coty’s existing color portfolio.
Skin and body care sales, where Coty has three main brands
(Adidas, Lancaster and Philosophy), were essentially flat.
By region, Europe, the Middle East and Africa accounted for
50% of sales last year, followed by the Americas (38%) and Asia
Pacific (12%). Sales in the Americas fell 11% due to a decline in
sales of Sally Hansen, OPI and fragrances, particularly older fragrances like Playboy, Chloé, Calvin Klein and Davidoff.
EMEA results were better, as sales increased 5%, driven by
gains in the UK, Eastern Europe and the Middle East. During
the year, Coty formed a joint venture in the UAE and established
a South African subsidiary, which is part of the company plan
to expand into emerging markets. Better UK sales reflected incremental net revenues from OPI resulting from the acquisition
of a UK distributor and from Katy Perry Killer Queen as well as
growth from David Beckham and Rimmel.
Sales in Asia Pacific fell less than 1%, but Coty noted that excluding the impact of reorganization of its China business and foreign currency exchange translations, net revenues in increased 7%.
The Mary Kay at Play color