Luxury skincare brand Orveda debuts in China

The luxury skincare brand Orveda, which is under the French beauty conglomerate Coty, made its China debut at the fifth China International Import Expo, which is held in Shanghai from Nov 5 to 10.

Jointly founded by Sue Y. Nabi, CEO of Coty Inc, Orveda is expected to be made available to Chinese consumers in 2023.

Also first introduced to the Chinese market via this year's CIIE is Ligne Princiére, a premium product line rolled out by Lancaster - the skincare brand under Coty. This product line will be launched in China in March 2023.

The introduction of the new brand and product line is part of the French beauty company's efforts to focus more on the skincare business. During an investors' meeting held in late September, Coty said that the company aims to double the revenue generated by skin care business to about $500 million to $600 million by fiscal year 2025. Its skin care units are likely to register even faster growth in fiscal year 2026.

As understood by Guilhem Souche, managing director of Coty China, the Chinese market will make due contribution to the group's goal, as the Chinese beauty market has been expanding noticeably, which is buoyed by the sophisticated demand of the Chinese consumers, especially the younger generation.

The physical retail channels, including the duty-free stores that Coty has opened in Hainan province, is expected to show robust growth and facilitate the development of the skincare business, he said.

It is the second time in a row for Coty to participate in CIIE.

"The Chinese market is one of the strategic pillars of growth for Coty. In this sense, presence at CIIE is quite important as it is one of the best platforms to know the market and get closer to consumers," said Souche.

While the overall industry is slightly negative due to the economic slowdown, Coty's high-end beauty business still managed to report double-digit growth in China in the fiscal year 2022, which ended on June 30, he added.

In early August, Coty entered into strategic partnership with Ant Group, the financial arm of e-commerce behemoth Alibaba. Based on the partnership, Coty will be able to better expand the travel retail business through the digital operation provided by Ant Group.

Hopefully, this partnership will extend beyond China and reach to a wider area of the Asia Pacific region, according to Coty.