BEAUTY REPORT: ESTÉE LAUDER COMPANIES
category mix. The region recorded notably strong brand growth in China and in travel retail in general, while a rise in tourism boosted numbers in Hong Kong. A winning combination of strong
innovations, gains from hero products and increasing demand from younger consumers was central to market gains. Growth of La Mer was also driven by the success of new products, including the launch of The Moisturizing Cool Gel Crème. Cult brand MAC also augmented its performance across the region, specifically in China, Hong Kong and travel retail in general. Meanwhile, Jo Malone London
continued to build on its existing channel
success, registering
outstanding double-digit growth in every region as well as in travel retail. This was further supported by
continued demand for make-up products, acceleration in skincare and a targeted and expanded consumer reach. Haircare also registered growth,
with Aveda a frontrunner in the performance stakes, recording solid numbers in online and travel retail channels. This was further buoyed by contributions generated through the launch of Invati Advanced and Full Spectrum Demi+.
Regional nuances In its 2017 Year in Review report, the company identified the fragrance category as growth leader in the travel retail channel. Jo Malone London and Tom Ford were star performers, thanks to exclusive launches such as the Blossom Belle collection for Jo Malone London, which homed in on the Asian travelling consumer. Strong results and double-digit
daily sales uplifts resulted from campaigns such as the exclusive collection pre-launch at Singapore Changi Airport, in partnership with The Shilla Duty Free, and high- profile touchpoints. China’s resurgence was also
flagged last year and continues to support the travel retail channel growth picture. In 2017, the hugely successful Tom Ford campaign, featuring popular Chinese influencers, helped activate global
JUNE 2018
travel corridors. This resulted in record growth for the brand in travel retail and placed Shanghai as the world’s number one Tom Ford door. It also partnered with DFS Group
for the Estée Lauder #BeautyAllNight campaign in Q1 2017, which audaciously planned to transform fans into influencers. This was through an exciting omnichannel initiative that brought together in-store activations with digital touchpoints via Chinese messaging platform WeChat.
Prestige beauty showcase This fiscal year, Estée Lauder Companies is continuing the momentum at locations such as Abu Dhabi Duty Free where, with DFS Group, it opened an all- new Estée Lauder boutique last July. A showcase for its prestige beauty brands and window for new products, the Terminal 3 store gave fresh exposure to MAC, Jo Malone London, By Killian and Smashbox products. In a first for travel retail, Abu Dhabi
International was the launch pad for the introduction of Editions de Parfums Frédéric Malle and Le Labo to travelling consumers. This was delivered in direct response to its 2017 trend note, which highlighted growing consumer demand for newer and artisanal fragrances in the travel retail space. In its Q3 financials report,
the company noted that Le Labo, By Kilian and Editions de Parfums Frédéric Malle benefited from growth in existing products and
targeted expanded
“We continue to position our company for sustainable, profitable growth and long-term shareholder value creation, with strategic actions and targeted investments to build our brands and strengthen our assets.”
Fabrizio Freda, Estée Lauder Companies
consumer reach. The launch of Jo Malone’s
English Fields fragrance collection contributed to higher sales, with increased sales from Tom Ford partially reflecting the continued success of the Private Blend fragrances line. In March 2018, Estée Lauder
Companies partnered with Lagardère Travel Retail to disrupt the baggage reclaim experience at London Luton Airport. Held to mark International Women’s Day, the promotion was organised in partnership with Aelia Duty Free and Clinique. The event was part of a strategic
move to use new ‘self-disrupt’ initiatives in order to enhance and ultimately drive browser conversion. This activation was supported by
influential bloggers, Sonja Kovac and Freddy Cousin Brown, with the aim of amplifying the event across social networks using the hashtag #TravelClinique. Freda says: “Amplifying our digital
initiative to drive brand engagement, trial and loyalty is a priority. “Our ability to anticipate prestige
beauty trends enables us to quickly deploy our resources to capture potential growth opportunities.” «
Estée Lauder Companies and Lagardère Travel Retail held a promotion in March with Aelia Duty Free and Clinique at London Luton Airport to mark International Women’s Day.
TRBUSINESS 39
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