Coty has launched a Global Fragrance Club aimed at bridging the performance gap in its fragrance segment compared to broader market growth. The program connects fragrance experts, educators, creators, and community leaders with Coty's fragrance teams, fostering collaboration and innovation in the industry.
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The Coty Fragrance Club debuted in Paris last week, featuring experts from the UK, Europe, the US, and China. Attendees explored fragrance creation's craft and art, interacting with renowned perfumers like Nathalie Lorson and Amandine Clerc-Marie, known for their work on YSL Black Opium and Chloé Eau de Parfum, respectively.
Coty plans to sustain the club through ongoing discussions, workshops, immersive experiences, and co-creation opportunities focused on consumer behavior, cultural trends, creative storytelling, and fragrance innovation. The company aims to meet regularly with community members to share insights on fragrance culture and consumer engagement strategies.
This initiative is particularly timely as Coty seeks to increase its fragrance sales in response to a growing market. In August, Executive Chairman and Interim CEO Markus Strobel expressed concern over their sell-out performance, noting it remains below market levels across both divisions. He emphasized that improving this performance is a key organizational priority.
Coty highlighted changing consumer attitudes influenced by social media, which cultivate new communities and spotlight the importance of experts and creators in consumer discovery. Additionally, TikTok has emerged as a significant driver of fragrance purchases among Gen Z consumers, motivating Coty to integrate diverse perspectives within the club.
Jean Holtzmann, Chief Brands Officer at Coty Prestige, remarked on the dynamic culture surrounding fragrances today, stating that the Fragrance Club seeks to blend these emerging voices with Coty's longstanding expertise.
Recent data from SoPost and UNiDAYS' Sample Society revealed insights into Gen Z purchasing habits: 74% of UK Gen Z individuals are willing to spend £100 or more on a single fragrance, 87% wear fragrance daily, and 45% try different brands every two to three months. Peer-review videos influence 43% of their purchasing decisions.
Market trends indicate consumers are expanding their fragrance collections. Lookfantastic reported a 13% increase in fragrance set sales in the first half of 2026 and a 71% year-on-year rise in hair perfume sales.
Coty's Prestige beauty division, which encompasses luxury and designer fragrances such as Burberry, Hugo Boss, and Calvin Klein, generated $3.81 billion for the company in the fiscal year ending June 30, 2026, accounting for 66% of total sales, though this was a 4% decline on a like-for-like basis.
Next year, Coty is set to lose a significant fragrance brand as it has agreed to transfer the Gucci Beauty license to L'Oréal for approximately $400 million, effective after June 30, 2027. However, the company has announced plans to introduce new fragrances for Italian luxury fashion house Etro and crystal specialist Swarovski in 2027.
Founded in Paris in 1904, Coty is a global leader in prestige and mass-market beauty products, operating in over 120 countries.