Coty Cosmetics CEO Sue Nabi told Axios that the beauty giant will “probably” one day showcase Coty-branded products.
Why is this important: Coty produces some of the world’s most popular perfumes, skin care products and color cosmetics on behalf of other well-known brands, but has given up on producing its own branded products.
In an interview on “Axios on HBO”, Nabi also discussed the brand’s decision to buy 52% stake in Kylie Cosmetics and 20% in KKW Beauty, Kim Kardashian West’s beauty brand.
- Coty has faced investor lawsuits who argued that the Kylie Cosmetics deal was too expensive, given the distorted numbers presented to Forbes in 2020 about the company. But Nabi said the power of these brands on social media makes them profitable long-term investments.
- “Clearly, we are going to invest behind Kylie … Today she is the most followed woman on Instagram. She recently gained two million followers in one week, 60 million, over 60 million in one year, ”Nabi said.
The big picture: The beauty industry has been shaken by the pandemic’s transition to e-commerce and micro-influencers through social media platforms like TikTok and Instagram.
- Micro-influencers, or social media influencers who cater to a niche audience, have forced traditional beauty companies to consider more progressive trends, like sustainable beauty products, genderless cosmetics and skincare and a more wide variety of makeup matching the complexion.
The bottom line: “These followers are following that person because they know that person is an expert on something. And with those, I would say, a new generation of influencers, ”Nabi said.
- Coty has recently invested heavily in revamping her Cover Girl beauty brand, especially to address more diversity.