However, diversification is also present in the Coty Inc. market strategy, giving it access to a broader sales base. For example, Cover Girl Lash Blast, one of Coty’s brands, was the second highest selling mascara brand in U.S. drugstores in 2014. Cover girl products also featured in the leading foundation brands in the United States in 2014, representing diversity not only between brands but within brands as well.
The popularity and reputation of Coty’s brands has lead to impressive total revenue figures for the corporation. However, the net revenue of Coty Inc. worldwide has seen a slight decline in recent years. From nearly 4.65 billion USD in 2013, net revenues fell to around 4.35 billion in 2016. While not catastrophic by any means, the downturn in revenue also resulted in a similar decline in the firm’s annual gross profits.
Given the importance of affluent household consumers to the beauty and cosmetic industry, Coty Inc. has a number of reasons to remain positive. A look at the share of such consumers in the United States who used Cover Girl products shows that nearly one fifth of consumers kept Cover Girl in their homes or handbags. Calvin Klein also has a strong grip on the market meaning the firm’s eggs are far from all in one basket.