Coty’s Messed up with Tjoy.docVIP

Coty’s Messed up with Tjoy Three years after acquiring Tjoy， Coty did not see the good results as expected. Instead， it failed to put this Chinese cosmetics brand into shape and had its own business slowed down by this asset-turned burden. With the unbearable regression， Coty， the largest perfume brand in the world， decided to give up Tjoy. On June 4， the French company announced the halt of selling the skincare products of Tjoy. This means that another Chinese local brand of chemical products for daily use disappeared after being acquired by foreign companies. At the same time， Coty announced its will to expand its business in China and restructure its Chinese business. It had already reached an agreement with Hong Kong Li Fung Group. Li Fung is going to take charge of the distribution of some key brands of Coty in China， including Adidas perfume， Rimmel cosmetics and Playboy. “For Coty， giving up Tjoy is a choice out of the strategic and financial need，” said an expert in the cosmetics industry. After acquiring Tjoy， Coty’s business in China was severely affected by the ever-shrinking sales of Tjoy. This did not match Coty’s ambition in China. It needs to find a new starting point with no burdens to expand its business as big as possible. The failure in integration Ending Tjoy， as Coty has officially stated， is to “be more focused on the international brands with more development potentials in China”. The connection between Coty and Tjoy could date back to December 2010. At that time， Coty and Tjoy reached an agreement， according to which Tjoy sold most of its shares to Coty. After that， Coty published a prospectus in June 2012， stating that it held 100% shares of Tjoy. The acquisition of Tjoy cost Coty 2.4 billion yuan in total. After acquiring Tjoy， Coty also took back the distribution of its Adidas skincare products and perfume， which was originally held by Shanghai Jahwa， as well as the Rimmel business whose distribution right previously belonged to Kose. “T