Cologne The fragrance company Coty with brands such as Gucci, Hugo Boss or Adidas has high hopes for the brands of influencer sisters Kim Kardashian and Kylie Jenner. For the only German plant in Cologne with 300 employees, however, the help comes too late.
The social media reach of Kim Kardashian and Kylie Jenner with their approximately 400 million followers is invaluable, said the new Coty boss Sue Youcef Nabi the “Handelsblatt”. “Kim and Kylie are helping Coty out of the crisis.”
Important future markets are Asia and skin care, Nabi continued. They have so far been neglected by Coty. The former L’Oréal manager has been Coty boss since September.
According to the “Handelsblatt”, the group currently still has around five billion dollars in debt and is pursuing a tough austerity course. Coty’s only German perfume factory in Cologne with 300 employees also falls victim to the red pencil: “The closure was a very difficult but necessary decision that was not easy for us,” Nabi told the paper. “We have to reduce our overcapacities in the area of fragrance production. That’s why we plan to produce fragrances only at the most cost-efficient locations.”
In the last fiscal year to the end of June 2020, Coty’s revenue fell 22 percent to $6.7 billion, according to the report. Today, around 12,000 people are employed worldwide. JaB Holding of the German billionaire Reimann family holds 50 percent of Coty.