Top 10 Global Cosmetics Companies’ 2024 Strategic Plans

Reviewing Shiseido’s product portfolio, the company continues to adhere to its longstanding strategy of ‘anti-aging/wrinkle reduction and hydration/stabilization,’ with its flagship product—the Ultimune Power Infusing Concentrate (‘Red Waist’ serum)—remaining central. Meanwhile, while other brands are intensively innovating in ingredients and formulations—popularizing professional concepts such as chitosan, retinol, niacinamide, and alpha hydroxy acids—Shiseido appears stagnant, relying heavily on legacy bestsellers. When sales of the ‘Red Waist’ serum began to falter, Shiseido did not pursue product upgrades; instead, it slashed the product’s price—from over ¥600 to approximately ¥379—a nearly 40% reduction. Yet this steep price cut failed to reverse the company’s full-year sales decline. Internally and externally, Shiseido is undergoing a fundamental transformation—from ‘defensive’ to ‘offensive.’ In 2023, the group implemented multiple strategic adjustments: restructuring its corporate architecture, leadership reshuffles, business realignments, and establishing new investment vehicles. It has also begun pursuing change and self-revitalization through investments and acquisitions—launching products featuring specialized active ingredients or targeting high-potential emerging categories. In trending categories, Shiseido has prioritized biotechnology and recombinant collagen. Last year, its LIFT Fund made its first investments in Phi Therapeutics, Inc., a leader in phage therapy technology, and Patrick Kidd Holdings Pty Ltd., an Australian men’s beauty brand focused on lifestyle enhancement. Through targeted investments in promising sectors and emerging brands, Shiseido aims to cultivate new pillars of growth to withstand market volatility. Against this backdrop, Xiamen Ziyue—the operational entity of Ziyue Fund, Shiseido’s first China-dedicated investment fund—was officially established. Its inaugural investment went to Chuangjian Medical, a biotech enterprise specializing in recombinant collagen research and development. Mastering this technology has accelerated the upgrade of Shiseido’s collagen-focused brands and enhanced the group’s overall competitive strength. Selected Beauty Brand Portfolios: ・ Coty Coty Inc. was founded in Paris in 1904 and offers a broad range of products—including fragrances, color cosmetics, skincare, and body care—under iconic brands. As a global leader in fragrance, Coty holds licensing rights for over 20 fragrance brands. In recent quarters, both its luxury and mass beauty segments have significantly outperformed expectations. According to its Q2 FY2024 financial report, the company’s sales growth exceeded the broader beauty market average, with operating profit rising in tandem: reported sales increased by 13%, and comparable sales rose by 11%. For the first half of FY2024, reported sales grew 16%, and comparable sales rose 14%—surpassing its guidance of 11–13% year-on-year growth. This year, Coty highlighted its century-long heritage and R&D innovation in fragrance at the China International Import Expo (CIIE), presenting Chinese consumers with a fusion of science and aesthetics. Not only did Coty debut its premium fragrance brand HUGO BOSS at CIIE for the first time, but it also unveiled its latest proprietary fragrance line—INFINIMENT COTY PARIS—blending aesthetics, science, and art. This collection represents one of Coty’s most promising fragrance offerings.

Coty’s First-Half FY2025 Financial Results Show Slight Decline, While Premium Fragrances Sell Strongly

3. Gross Profit and Gross Margin Significantly Improved Coty achieved robust growth in gross profit and operating margin during the first half of FY2025. Gross margin rose by 180 basis points year-on-year to 66.1%, driven primarily by supply chain optimization, premium pricing strategies, and easing inflationary pressures. Business Segment Performance: 1. Luxury Beauty Segment Revenue for the first half of FY2025 reached USD 2.2302 billion (approx. RMB 16.19 billion), up 2% year-on-year. Fragrance performance was especially outstanding: Boss became Europe’s second-largest men’s fragrance brand; Marc Jacobs’ ‘Daisy’ series and Burberry fragrances delivered strong results, propelling premium fragrance sell-through volumes to high single-digit growth. However, luxury color cosmetics faced weakness, impacted by continued sluggishness in mainland China and Asian travel retail channels. 2. Mass Beauty Segment Revenue for the first half of FY2025 totaled USD 1.1112 billion (approx. RMB 8.06686 billion), down 6% year-on-year. Net revenue declined in body care and color cosmetics, yet mass fragrances posted mid-single-digit growth—outperforming the broader mass beauty market—and mass skincare also registered growth, partially offsetting declines elsewhere. Regional Market Performance: 1. EMEA Region (Europe, Middle East & Africa) As Coty’s largest market, EMEA delivered stable performance: first-half FY2025 revenue reached USD 1.6276 billion (approx. RMB 11.816 billion), accounting for 49% of total net revenue and growing 4% year-on-year. Revenue gains in the UK, Ireland, Spain, Portugal, and African markets—alongside the addition of new export distributors—provided strong support for regional growth. 2. Americas Region First-half FY2025 revenue stood at USD 1.3321 billion (approx. RMB 9.67051 billion), representing 40% of total net revenue but declining 5% year-on-year. This contraction stemmed mainly from foreign exchange headwinds, alongside falling net revenue in the U.S. mass beauty division, softness in the color cosmetics market, and declining body care revenue in Brazil’s skincare market—collectively weighing on overall performance.

Coty Tops Estimates on Prestige Brands Boost Amid Turnaround

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Coty beat Q1 estimates on prestige brands but warned of lower Q2 profits due to rising material and shipping costs from the Middle East conflict. Costs for plastics, metals, and packaging remain elevated per management.

reuters

2026-11-04

Coty Tops Estimates on Prestige Brands Boost Amid Turnaround

Coty Tops Estimates on Prestige Brands Boost Amid Turnaround

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