French fragrance company, Coty Inc. plans to acquire Tjoy, a Chinese skin care brand. The move is intended to give Coty a foothold in China and the ability to expand its R&D capacities there.
“The Tjoy investment positions Coty as a major player in China, solidifying our position as a global beauty leader”, says Bernd Beetz, Chief Executive Office, Coty Inc.
According to industry sources, this sudden turn into treatment and makeup is understandable considering that Coty is heavily reliant on the celebrity and designer fragrance market, which dropped 10 percent in U.S. department and specialty stores in 2009 to $2.48 billion.
As reported earlier by Ibob team, in its expansion spree, Coty acquired OPI Products Inc, a salon-based nail enamel brand, for a price estimated at under $1 billion. It also bought the skin care brand Philosophy for a price thought to be similar. These moves followed the acquisition of Dr. Scheller Cosmetics, a German brand, from a Russian company, Kalina. In October, Coty also acquired the license to develop a color cosmetics line for Calvin Klein, which also does business with Coty in fragrances.
Posted on: 8.12.2010