Coty touts e-commerce as “strategic growth pillar” for SEA fragrance ambitions

“Coty is well positioned for the future, it’s now about moving quickly to explore any opportunities that arise,” said Kristina Strunz, vice president of sales, Coty Southeast Asia.

One of the big opportunities for the company was the rapidly growing e-commerce space, an area which until now had not been suited to selling fragrances.

“Traditionally, it has been a challenge for the fragrance category to adapt to e-commerce. However, the pandemic has accelerated digital shopping habits over the past two years, with shoppers now expecting to be able to find prestigious brands online and to buy them easily”, Strunz said CosmeticDesign-Asia.

She pointed out that the key change has been the ability for them to try scents through scent discovery kits before moving on to full-size products and gift sets.

“It speaks volumes about the emergence of e-commerce as a viable retail channel for fragrances that Coty has identified it as a strategic growth pillar in Southeast Asia,” Strunz said.

With many countries reopening through SEA, Strunz said the business is “presented with a great opportunity to reconnect with buyers”.

To capitalize on this, the company unveiled its first official digital flagship store for Chloé Fragrances in May with leading SEA e-commerce platform, Lazada.

This online point of contact would serve as “convenient destination for gifting”for commercial peaks such as Valentine’s Day or Mother’s Day, Strunz said.

Additionally, it allows the cosmetics company to tap into major opportunities, such as recruiting a younger generation of consumers, especially Gen Z, as well as male consumers.

“We will also be looking to broaden our reach to target those who prefer to experience their unique scent from the comfort and privacy of their home,”Strunz said.

Other brands to follow

Chloé Fragrances is just the beginning for Coty as it strives to grow its digital footprint in the region.

“This will see us introduce a wide range of fragrances online, with Chloé Fragrances being just the start. summer course, Strunz said.

“Finally, we’re working on launching more exciting brands in Q4, just in time for all the upcoming e-commerce shopping festivals. To give you a preview; in August, we’ll be back with another fragrance launch at success building on the success of last year’s fragrance Gucci Gorgeous Gardenia led by Miley Cyrus.

In addition to new products, Strunz also teased several campaigns that will take place in Singapore.

“Ahead, we have exciting online campaigns planned for the second half of 2022 for our ultra-prestige and fashionable fragrance portfolio here in Singapore, in conjunction with TANGS, Paragon and Takashimaya shopping malls.”

She added that the company has plans in place to deliver high double-digit year-over-year growth for the fragrance category in SEA, with the overall market on a mid-double-digit growth trajectory.

“Having already significantly exceeded our pre-COVID sales levels, we are on track to accelerate Coty’s footprint with the aim of being a leading group in this region,”Strunz said.

Beyond SEA, Coty also sees potential in the wider Asian region, including the Indian market.

“We have the emerging middle classes in countries like India, Indonesia and Malaysia, with India and Indonesia in particular being cultures where perfume plays a vital role. This gives us the opportunity to offer different scents and allows the consumer to express themselves through varied scent personalities at a range of price points, from lifestyle to niche fragrances,”Strunz said.

Donovan B. Sanford