Coty Inc. has entered into an agreement in which Hong Kong-based global sourcing firm Li & Fung will distribute some of Coty's brands in China, including adidas, Rimmel and Playboy.


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Coty unveils distribution pact for China market

June 3rd, 2014

NEW YORK – Coty Inc. has entered into an agreement in which Hong Kong-based global sourcing firm Li & Fung will distribute some of Coty's brands in China, including adidas, Rimmel and Playboy.

Coty said Tuesday that the agreement marks a shift in its go-to-market strategy for brands sold via mass distribution in China by allowing the beauty care company to leverage Li & Fung's broad distribution network in that channel.

Under the partnership, which starts July 1, Coty will oversee development, production, marketing and brand building activities while profiting from the strong go-to-market capabilities of Li & Fung. Coty added that it will also discontinue the TJoy brand to focus on the international power brands that have more growth potential in China.

"We expect our partnership with Li & Fung to accelerate the expansion of some of our international brands in the mass channel, strengthening Coty's position in this fast-growing market," stated Michele Scannavini, chief executive officer of Coty. "Li & Fung is a valued business partner, and we look forward to a long term and successful partnership in China."

Coty noted that the distribution pact reflects its previously announced intent to reorganize its mass business in China.

"We are delighted to be deepening the longstanding relationship between LF Asia and Coty," commented Gerard Raymond, senior executive at LF Asia, a business unit of Li & Fung. "Li & Fung provides its expertise to Coty in different areas of the supply chain, including sourcing, manufacturing and now distribution. LF Asia is uniquely placed to give Coty's power brands access to the Chinese consumer and throughout our network in China. We are very much looking forward to this opportunity with Coty, and we see great potential to develop our partnership further."

Coty's roster of global brands includes such names as adidas, Calvin Klein, Chloe, Davidoff, Marc Jacobs, OPI, philosophy, Playboy, Rimmel and Sally Hansen.

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