Coty accelerates social investments

Beauty company Coty is directing most of its media spending into digital channels and is increasingly using influencers to promote its products. 

What’s happening 

• “We are continuing to shift media spend toward digital and social media activations, which now account for a majority of our media spend,” CFO Laurent Mercier said during a presentation of Q4 results. 
• A global digital centre of excellence, located in Paris, is benefiting from know-how being created in key regions around the world, especially the US and China, where digitalisation of the beauty world is more advanced.
• Coty has stepped up the number of influencers it works with on key launches of consumer beauty products, moving from dozens to one hundred – “and we saw the results immediately”, Mercier told an earnings call, with a boost to earned media values.
• The business now plans to increase the number of influencers to 1,000 and has created 15 “studios” where brands and influencers can co-create local content for different markets. 

Premium innovation 

• The consumer beauty market is being driven by “premium innovation, not entry pricing”, Mercier maintained, “and that is very important for everyone to hear.” 
• “We are accelerating the pace of innovation, specifically what I call premiumised innovation,” he said.

Sourced from Coty, Seeking Alpha

[Image: Coty]