Coty has entered into an agreement with Li & Fung, an Asian specialist of consumer goods headquartered in Hong Kong, for the distribution of some of Coty’s brands in China, including adidas, Rimmel, and Playboy.
“This agreement with Li & Fung represents a shift in Coty’s go-to-market strategy for brands sold through the mass distribution channel in China, by allowing Coty to leverage Li & Fung’s broad distribution network in that channel. Coty will oversee development, production, marketing and brand building activities, while profiting from the strong go-to-market capabilities of Li & Fung,” said the group in a release. The partnership will start July 1 for a handover of the activities concerned.
"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,” said Michele Scannavini, CEO, Coty Inc. "Li & Fung is a valued business partner, and we look forward to a long term and successful partnership in China.”
At this juncture, Coty will also discontinue the TJoy brand to focus on the international power brands that have more growth potential in China.
"We are delighted to be deepening the longstanding relationship between LF Asia and Coty. 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,” highlighted Gerard Raymond, senior executive at LF Asia, a business unit of Li & Fung.