Coty Acquires Peer-To-Peer Social-Selling Platform Younique For $600M
This article was originally published in The Rose Sheet
Younique takes the more traditional direct-sales model in which independent reps sell beauty products to family, friends and acquaintances via home parties – and perhaps recruit a few attendees for their down lines in the process – and moves it to the social media sphere. Coty is acquiring a 60% stake in the business, with plans for global expansion.
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Coty purchased a 60% stake in Younique in early 2017, touting the startup as “one of the most engaging and fastest-growing e-commerce companies in beauty.” However, growth in the social-selling business has slowed over the past year and “presenter” levels have declined despite enhancements to Younique’s compensation program, making it an not-so-surprising discard in Coty’s simplification effort.
Lauder again hikes its full-year net sales guidance after beating expectations with 11% reported growth in the fiscal 2019 third quarter. Coty reports on its turnaround progress, and Revlon points to optimistic improvements that drove Q1 constant-currency net revenue growth of 2.3%.
Coty’s ongoing integration of P&G beauty assets, going on two years after the deal’s completion, has compounded challenges for its Consumer business, which faces a very different market today compared with conditions when Coty outbid rivals for CoverGirl, Max Factor and other P&G castoffs.