COTY has announced a new organizational structure and the future leadership team for the company, both of which will become effective when its merger with the Procter & Gamble Specialty Beauty Business (including fine fragrance, color cosmetics, salon professional and hair color and styling businesses) is complete—which is expected in the second half of 2016.
The brand's new organizational structure will be category focused, putting the consumer first, by specifically targeting how and where they shop and what and why they purchase. Each division will have full end-to-end responsibility to optimize the consumers’ beauty experience in their relevant categories and channels in this new organizational design and translate this into profitable growth. Accordingly, post-merger, COTY's business will be organized into three divisions:
- COTY Luxury Division, focused on fragrances and skin care
- COTY Consumer Beauty Division, focused on color cosmetics, retail hair coloring and styling products and body care
- COTY Professional Beauty Division, focused on servicing salon owners and professionals in both hair and nail care
COTY will also be launching a new department, called Growth and Digital, which will be focused on accelerating growth. It will regularly review the company’s portfolio strategy and focus on working with each of the three divisions to improve its capabilities in innovation, sales and traditional and digital marketing.
“The new COTY will bring together a very experienced and diverse executive team, skilled at managing complex global consumer operations, and driving innovation, creativity and growth, all of which are a prerequisite for future success. This deeply experienced team combined with the new category-focused and consumer-centric structure, and our portfolio of world-class brands, are all expected to play key roles in making COTY a strong global leader and challenger in beauty and driving profitable growth and shareholder value over time,” said Bart Becht, chairman and interim CEO of COTY.
Each of the Luxury, Consumer Beauty and Professional Beauty divisions will be led by a president, who will be supported in the areas of supply chain, finance, human resources and information services. The divisions will be overseen by an executive team consisting of the three presidents, the functional heads and the CEO. The executive team will provide strategic direction, pursue M&A opportunities, build out corporate capabilities and address public company obligations.
In addition, COTY plans to relocate its executive management offices to London. Being operationally located in London will allow COTY to more effectively operate as a global leader, with closer proximity to the company’s key strategic markets around the world.
Beauty management, upon completion of the merger, includes Sylvie Moreau, as president of COTY Professional Beauty; Esi Eggleston Bracey, president of COTY Consumer Beauty; and Edgar Huber, as president of COTY luxury. Moreau will be responsible for overseeing COTY's salon business in hair and nail care. She is currently executive vice president of Wella, the Salon Division of P&G. Bracey will oversee COTY's Color Cosmetics, Hair Coloring and Styling and Body Care division. She is executive vice president of Global Color Cosmetics for P&G, where she leads the COVERGIRL and Max Factor businesses across more than 80 global markets. Huber will oversee COTY's Fragrances and Skin Care division. He was most recently president and CEO of Lands’ End.
[Image courtesy of COTY]