Beauty heavyweight sets ambitious agenda

Chain Drug Review, Sept 1, 2008

Although the skin care sector in mass market outlets is already crowded with dozens of players across a wide variety of segments, Coty Inc. feels there is always room for one more.

The company has big plans for its line, executives say. Best known for fragrances and color cosmetics, the company announced plans earlier this year to build its skin care operation into a $300-million-a-year business in the next three to five years.

Market researchers note that this level of sales would make Coty one of the five best-selling brands in the prestige skin care arena and would provide the company with the perfect complement to its growing cosmetics business.

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"Our objective was to become a leader in fragrance, and now we're thinking of the next five-year stretch," a spokeswoman said earlier this year. "The next step is to develop skin care."

Coty is making its first move in that direction this month with the launch of Home Skin Lab, an 18-item line that will initially be sold through the television shopping network HSN. It also plans to distribute its Lancaster prestige line, which is strong in Europe, to the United States and China.

The decision to move into the prestige side of the skin care market comes a year after Coty opted to dispose of its mass market skin care offering, Healing Garden.

Executives say Healing Garden was more of a bath and body line, whereas Lancaster and Home Skin Lab are treatments more in line with traditional skin care.