OBJ partner company Coty reports on future digital personalisation - is OBJ technology what Coty is calling Energy Code technology? Has it been trademarked JTA?
Coty Q2 2017 - Earnings Call Transcript
"Our Salon hair portfolio continued to grow low to mid-single-digit, consistent with the performance in the two previous fiscal years, and ahead of the salon market, which is growing at approximately 1%. We are excited by the continued strong performance over the largest brand, Wella, as well as the System Professional brand which is tapping into the premium care segment and the growing trends of customization and personalization with this Energy Code technology."
"And speaking of digitally focused investments, I would like to touch on the substantial effort that we're implementing to accelerate Coty's digital transformation. These actions span four major components. In marketing science, we are now able to understand and reach our consumers with far higher levels of targeting precision, thereby enabling a step change in our social listening and trend scanning capabilities to better keep our brand teams in markets."
"In terms of brand content, we are testing creative to better align with target consumer segments and drive high and low (16:55) media effectiveness. In media optimization, we have continued the transition to digital from 21% to over 30% globally in just this past six months, while also outperforming engagement and cost benchmarks by up to 30%, driving further media efficiency. Looking at it as omnichannel (17:18), we will begin to create new platforms for deeper personalization, including online and new store activation programs."
"We have created three new operating divisions and therefore three new reporting segments, which are Consumer Beauty, Luxury and Professional Beauty. This new organization structure is product-category and channel-focused, putting the consumer first by specifically targeting how and where they shop and what and why they purchase. Each of the divisions have full end-to-end responsibility to optimize the consumer's beauty experience in their relevant categories and channels. We are convinced this new organizational design with full P&L responsibility will translate into profitable growth."
"Look, we believe that we have an amazing set of brands and our brands are loved by millions. So our strategy in terms of repositioning the brands, and you mentioned COVERGIRL, it's not just the only one, is key to reconnect with the consumers. I mentioned that I was not satisfied with some of the elements of the COVERGIRL position in the past, but actually we are now working on reinvigorating the innovation process, upgrading the packaging, the way it looks in-store, we're going to be more modern, more focused on looks. So clearly, we have a lot in our pipeline to re-launch the brand in the future."
"Coty is clearly in evolving mode. We are in build-up mode. We are currently building a platform – forming the platform to be a serious challenger in the beauty industry."
"And one of the key shift is going to be really going from traditional TV, traditional media to digital engagement. And then as you know, moving that actually creates a lot of efficiencies, so it's not just a matter of spending more, but it's a matter of spending better and connecting better with the consumers, making sure that we speak to them in the right way where they are. And a lot of times, they're not necessarily watching TV, but they are on different digital platforms."
"Regarding on your question on spending more overall, I want to go back to my previous answer which is that when you start shifting the traditional media to digital, you actually have way more money to play with and to invest, to be able to reach more consumers. Consumers are truly spending a disproportionate amount of time on social media, on social platforms."
"So, let me comment on that, Mark, on Younique. I believe Younique is highly strategic, and I really believe that the online peer-to-peer social selling has a lot of potential. And our choice is driven clearly by wanting to partner with a company that has developed a very, very successful business in this area."
"And, of course, by our ambition of growing this business by also looking at geographical expansion and further category expansion. If you think that Younique has mainly had – it's a business, a brand with the color cosmetic, I believe that this brand and in general the platform has the potential to be expanded more. And so – plus I think that e-commerce for us is a key focus for the future. And the acquisition or the partnership with Younique is a stepping stone for us to improve our capabilities, strengthen our capability in e-commerce."
(20min delay)