Estee Lauder Companies advertising & marketing assignments

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Selected Estee Lauder advertising

Estee Lauder is one of the world's foremost marketers of beauty and cosmetics products. Publicly quoted but still family-controlled, the group is the #1 prestige beauty marketer in the US, and #2 worldwide (behind L'Oreal). Lead brands Estee Lauder and Clinique are supported by a large portfolio of brands in all price brackets from ultra-prestige to mass-market. They include wholly owned brands including MAC and Bobbi Brown cosmetics, Jo Malone fragrances and bath products, Smashbox and La Mer and Origins prestige skincare, as well as fragrance and cosmetics licenses for designers including Tom Ford, Tommy Hilfiger, Donna Karan/DKNY and Michael Kors. More recently the group has moved into haircare through acquisitions including Aveda and product extensions from its existing brands; and also into the mass-market cosmetics sector with a collection of products exclusively for Kohl's stores and for shopping channels QVC and HSN. It continues to bolt-on niche brands, especially in the prestige market. Recent purchases include Becca and Too Faced, Dr Jart+ and Do The Right Thing. The group also has a substantial retail network over around 2,400 freestanding branded stores (of which around 1,600 are company operated) trading under the MAC, Jo Malone, Aveda or other brands. The Lauder family retains 86% voting control and several members play an active role in the business, not least Estee Lauder's grand-children William Lauder (executive chairman), Jane Lauder (EVP marketing) and Aerin Lauder (global style & image director for the Estee Lauder brand and founder of the Aerin Beauty range). Former P&G executive Fabrizio Freda was appointed in 2009 as CEO, the first non-family member to hold that role, and the group has gone from strength to strength since then. Revenues hit a new high of $14.9bn in the year to June 2019, before slipping back in Covid-impacted 2020 to $14.3bn. Net earnings for ye 2020 slumped by two-thirds to $684m. Skin care accounted for more than half of revenues and make-up for a full third. Despite its position as a distinctively American business, the group's biggest regional market is actually EMEA, accounting for 44% of sales, followed by Asia Pacific at 29% and then the Americas at 27%

Capsule checked 5th February 2021

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Recent stories from Adbrands Update:

Adbrands Daily Update 20th Aug 2018: Estee Lauder Companies continues to go from strength to strength. For the year to June 2019, the group's revenues set a new record of $14.9bn, up 9% on the year before - without currency headwinds the increase would have been even higher - while net earnings jumped by over 60% to almost $1.8bn. CEO Fabrizio Freda credited several factors for the strong numbers, including strong performance throughout Asia Pacific (sales up 25% in constant currencies) and several other emerging markets as well as travel retail and online sales. Skincare products led by Estee Lauder and La Mer performed especially well, with combined sales up by 17% year on year. Tom Ford Beauty was the group's best performing makeup line.

Adbrands Weekly Update 30th Aug 2018: Estee Lauder Companies reported a 16% increase in annual revenues to $13.7bn. "Sales climbed in virtually all our brands," said CEO Fabrizio Freda, "and we hit milestones along the way. Among the top four brands, our flagship Estée Lauder brand achieved record global sales and grew 22% in constant currency, demonstrating the amazing equity of the brand. La Mer became the fourth brand in our portfolio to contribute well over $1bn in net sales, and we increased sales at M-A-C and Clinique globally." Sales of skincare brands alone jumped by almost a quarter, or over $1bn. Pretax earnings were up 22% but a write-off of tax assets as a result of new US regulations resulted in an 11% decline in net income to $1.12bn.

Adbrands Weekly Update 24th Aug 2017: Estee Lauder Companies' share price hit record highs in the wake of a strong set of results for the year to June. Revenues were up 5% to over $11.8bn, while net income jumped 12% to $1.25bn. Growth was generated by newly acquired make-up brands Becca and Too Faced as well as a big boost in ecommerce sales direct to consumers. Make-up overtook skincare as Lauder's biggest product range in 2016, with sales topping $5bn for the first time in 2017. Estee Lauder is now "digital first", CEO Fabrizio Freda told analysts. "E-commerce and the consumer online will be a very important part of our business for many years to come and will be a big part of our growth." 

Adbrands Weekly Update 13th Apr 2017: Long-serving Estee Lauder veteran Thia Breen, currently group president North America, will retire at the end of June. She joined Estee Lauder in 1977, and has spent almost all of the past 40 years at the company (apart from a two-year stint at retailer Federated Stores). She will be replaced as North America chief by Chris Good, who moves from president, Estee Lauder UK & Ireland. He will in turn be replaced by Philippe Warnery from Lauder in Canada.

Adbrands Weekly Update 17th Nov 2016: Estee Lauder announced its biggest ever acquisition with a deal to buy fast growing premium cosmetics brand Too Faced for $1.45bn, more than five times its annual revenues this year. Lauder brands president John Demsey said that Too Faced would bring a lighter and more playful tone to the group's overall portfolio. "It has a distinctly feminine whimsical sensorial territory that is differentiated among the brands that we currently have. It's not to say that there are not other brands in the marketplace with this positioning [but] our corporation, to date, does not have a brand that is overtly this pretty and feminine."


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