Coty focuses on prestige in China

COTY INC.,has announced recently it will discontinue its Chinese skincare brand T-Joy.

Coty had acquired the mass-market brand in 2010 for $400 million. But according to its third quarter financial report, weak TJoy sales coupled with higher advertising and promotion spending, has led to a $9.6 million operating loss in Coty’s skin and body care sector. And the company will now “focus on the international power brands that have more growth potential in China,”  as  it is finding its way in international and developing markets with products other than fragrance,  according to the company.

At the same time, Coty has entered an agreement with Hong Kong’s Li & Fung to distribute brands such as Adidas, Rimmel and Playboy through the Li & Fung network.
Adidas