Estée Lauder

Summary

Estée Lauder, established in 1946 in New York City by Estée and Joseph Lauder, is a globally influential beauty brand renowned for its luxurious skincare, makeup, fragrance, and hair care products. As a pioneer in the cosmetics industry, the brand emphasizes innovation, quality, and personalization, offering products tailored to diverse consumer needs. Estée Lauder’s commitment to research and development has positioned it at the forefront of beauty technology, blending science with elegance. Known for iconic products like the Advanced Night Repair serum and Double Wear foundation, the luxury brand embodies sophistication and timeless appeal. With a strong global presence across retail and online platforms, Estée Lauder remains a cornerstone of the beauty industry, celebrated for its dedication to empowering consumers through self-expression and confidence.

History

One of the world’s leading skincare- cosmetics- fragrance- and hair care brand began in 1946 when Estée Lauder and her husband Joseph Lauder retailed four skincare products developed in the kitchen based on a simple premise: every woman can be beautiful. Armed with that philosophy, plus perseverance, creativity and passion, she changed the face of the cosmetics industry.

The business took shape when Estée started selling skin care and makeup in salons. In 1946 she and Joseph Lauder officially launched the company, and a year later they got their first major order: $800 worth of products from Saks Fifth Avenue, New York. Estée believed in the mantra, “Telephone, Telegraph, Tell a Woman.” Estée had innate instincts for what women wanted and was the consummate saleswoman and marketer. She believed that to make a sale, you had to touch the consumer, show her the results on her face and explain the products. That was the start of the company’s personal service: High-Touch.

Once the Estée Lauder brand began to advertise, Estée insisted that the print images be both aspirational and approachable and selected one model to represent the face of the brand at any given time. She picked the pale turquoise color for the brand’s jars, believing it conveyed a sense of luxury and matched all bathroom decors. Estée attended the opening of virtually every new store and stayed for a week to instruct her beauty advisors on sales techniques and merchandise display.

Over the next decade, the duo expanded the range and in 1960, opened their first overseas store in Harrods, London. The following year, they opened an office in Hong Kong. In 1964, Aramis was introduced: a line of fragrance and male grooming products. As a visionary, Estée Lauder was honoured with several awards during her career including France’s Legion of Honor and Gold Medal of the City of Paris. In 1968, Estée Lauder was awarded Spirit of Achievement from Albert Einstein College of Medicine. That year, the company expanded further, and opened Clinique, a dermatologist-guided, allergy-tested, fragrance-free cosmetics and skincare brand. It became the first women’s cosmetic company to introduce a line for men in 1976, titled “Skin Supplies for Men”.

“Our portfolio strategy includes growing existing brands and discovering new high-potential acquisitions that align with our values and offer a long-term outlook for success,” says Fabrizio Freda, President and CEO. “To maintain our leadership position, we nurture and preserve each brand’s distinctive identity and purpose. At the same time, we leverage our global distribution, creative resources and operational expertise across all our brands.”

In 1981 the products were being retailed in the Soviet Union. In the nineties, brand acquisitions and licensing agreements contributed to its growth as the company transformed from a family-owned business to a public family-controlled organization. Brand acquisitions began with an investment in M•A•C Cosmetics in 1994, which the company acquired in 1998. Bobbi Brown Cosmetics and La Mer were acquired in 1995. The company ventured into hair care and holistic beauty brand with Aveda in 1997 and renowned fragrance house Jo Malone London was acquired in 1999.

On November 16, 1995, The Estée Lauder Companies went public on New York Stock Exchange. The company’s sales in 2003 were reportedly $5.12 billion. Estée Lauder passed away at her home in Manhattan on April 24, 2004. The company continued with its acquisitions full steam in the following years and bought a majority interest in Bumble And Bumble haircare salon.. a exclusive global licensing agreement was signed with fashion designer Michael Kors and fashion designer Tom Ford inked a deal to develop and distribute fragrance and cosmetics under Tom Ford Beauty. Diversification was a top goal across price points and product categories. On July 1, 2010, the company acquired Smashbox Beauty Cosmetics, Inc. On October 28, 2011 Aramis and Designer Fragrances- a division of The Estée Lauder Companies Inc.- and Tory Burch LLC collaborated for the global license of Tory Burch fragrance. This alliance marked Tory Burch’s debut in the beauty industry. In 2012, the company launched Aerin Beauty: a luxury lifestyle beauty and fragrance brand.

In 2014 the company acquired two beauty brands, Rodin Olio Lusso, a skin care brand acclaimed for its “Luxury Face Oil,” and Le Labo, a fragrance and sensory lifestyle brand. That year, the company made its first investment in India with a minority stake in Forest Essentials, a luxury cosmetics brand specialising in Ayurvedic products. In 2015, the company acquired Editions de Parfums Frédéric Malle, a fragrance brand, and GlamGlow, a skin care brand. The following year, it acquired Becca Cosmetics, its first color cosmetic group acquisition since Smashbox. In November, the company made its largest acquisition, acquiring California-based cosmetics company Too Faced for reported US$1.45 billion. And in 2019, Dr. Jart+, which pioneered the invention of BB Cream, setting the standard for multifunctional beauty.

However Estée Lauder’s winning streak was curtailed due to the pandemic and profits declined by a reported 14 per cent in the first quarter of 2020 due to store closures and declines in travel retail. Jane Hertzmark Hudis, Executive Group President, is focusing on reforming Estée Lauder into a digitally empowered beauty brand and expanding online marketing and services. The company has increased emphasis on its skincare products, which remains the fastest growing category in beauty, as people are focusing on self-care with the ample me-time. But the core values she embodied are more relevant and more inspiring to women of all generations than ever before. Today the Company engages with women in more than 150 countries and territories and at dozens of touch points — both in stores and online. And each relationship consistently reflects Estée’s powerful and authentic convictions and unique point of view.

Breast Cancer Awareness Campaign

In October 1992, the Breast Cancer Awareness campaign was launched by Estée Lauder’s daughter in law, Evelyn Lauder, who co-created “Pink Ribbon” with SELF magazine as a symbol of breast health. Since then, millions worldwide have become aware of the importance of breast health and how early detection potentially saves lives. The Estée Lauder Companies’ annual Breast Cancer Awareness campaign involves all of the brands in Estée Lauder Companies. Since 1992, the campaign has raised reported $89 million for lifesaving research, education and medical services.

Mission Statement

Estée Lauder’s mission is focused on driving creativity and innovation throughout every aspect of the beauty industry. The company is dedicated to continuously inventing the future of beauty, ensuring that its products and services remain at the forefront of the industry. From the initial stages of product development to the final steps of packaging and merchandising, Estée Lauder is committed to delivering cutting-edge solutions that are in sync with the evolving preferences of its consumers.

This mission extends to all facets of the luxury beauty brand’s operations, including sampling, selling, and marketing. Estée Lauder strives to create a seamless and engaging experience for consumers, adapting to their evolving needs and desires. By staying ahead of trends and embracing innovation, the company ensures that it not only meets but anticipates the demands of the modern beauty consumer, maintaining its position as a leader in the industry.

Vision

Estée Lauder’s company vision is deeply rooted in the legacy of its founder, Estée Lauder, with a strong commitment to empowering women. The company is driven by a passion for developing high-quality products that not only perform exceptionally but also contribute positively to society. This commitment extends beyond beauty, as the beauty brand actively engages in initiatives that support women’s health and education, recognising the impact these areas have on millions of lives.

The luxury beauty brand’s vision is inclusive, aiming to meet the diverse needs of women across all ages, ethnicities, and backgrounds. Estée Lauder’s programs and grants are designed to address these varying needs, ensuring that their impact is widespread and meaningful. By focusing on health and education, the company plays a significant role in improving the lives of women globally, reflecting its dedication to making a difference beyond the realm of beauty products.

In line with this vision, the Estée Lauder Emerging Leaders Fund embodies the company’s cutting-edge approach to leadership. The Fund seeks to redefine leadership by supporting a new generation of leaders who challenge traditional gender stereotypes. By investing in global organizations that foster leadership development and create supportive communities, Estée Lauder ensures that emerging leaders with bold visions for change are empowered to make a significant impact on the world.

Awards and Recognition

As a visionary businesswoman, Estée Lauder was honored with many awards during her career. Receiving the French Legion of Honor, Gold Medal of the City of Paris and Spirit of Achievement from Albert Einstein College of Medicine were some of the high points in her life. Estée Lauder is widely recognized as a global leader in the beauty industry, known for its unwavering commitment to excellence and innovation. The brand has earned accolades for its high-quality products that consistently meet the diverse needs of consumers across the world.

Esteemed for its pioneering approach, Estée Lauder has set industry standards in product development, marketing, and customer engagement, securing its place as a trusted and iconic name in luxury beauty. Beyond its product excellence, Estée Lauder is also celebrated for its impactful social initiatives and corporate responsibility. The brand’s dedication to empowering women, promoting health and education, and supporting emerging leaders has garnered widespread admiration. Through its philanthropic efforts and sustainability practices, Estée Lauder continues to be recognized not only as a leader in beauty but also as a force for positive change in society.

Products and Services

Estée Lauder offers a diverse range of luxury beauty products, including skincare, makeup, fragrance, and hair care, all meticulously crafted to meet the highest standards of quality and performance. Each product reflects the luxury beauty brand’s commitment to innovation, leveraging cutting-edge research and technology to deliver results that cater to the varied needs of consumers worldwide. From rejuvenating serums to long-lasting lipsticks, Estée Lauder’s products are designed to enhance beauty and confidence, making them a staple in the routines of millions.

In addition to its extensive product line, Estée Lauder provides a personalized shopping experience through various services aimed at enhancing customer satisfaction. The brand offers expert beauty consultations, both in-store and online, helping customers select the perfect products tailored to their unique needs. Estée Lauder also emphasizes convenience and accessibility through its global retail presence and e-commerce platforms, ensuring that its luxurious beauty offerings are available to consumers wherever they are.

The Team

• Jane Lauder (Board Member)
• Leonard Lauder (Chairman Emeritus)
• Fabrizio Freda (President and CEO)
• William P. Lauder (Executive Chairman)
• John Demsy (Executive Group President)
• Carl Haney (Executive VP: Research, Product and Innovation Officer)

References

1. Wiki page of Estée Lauder Wikipedia
2. Ana de Armas Is the New Face of Estée Lauder Harpers Bazaar
3. How Estée Lauder is pandemic-proofing a legacy brand Vogue Business
4. Breast Cancer Awareness at Estée Lauder Estée Lauder
5. Twitter account of Estée Lauder Twitter
6. Why Estee Lauder Is Buying This Cosmetics Brand for $1.45 Billion Fortune
7. Estée Lauder announces Kendall Jenner as the new face of the brand Fashionista
8. Estée Lauder to buy Tom Ford BBC
9. Facebook page of Estée Lauder Facebook
10. Estée Lauder pledges money to help Windermere BBC
11. Explore Estée Lauder’s first perfume in 10 years Vogue
12. Cosmetics billionairess Estée Lauder dies Biz Community
13. Instagram account of Estée Lauder Instagram
14. Kendall Jenner Transforms Into Supergirl in Her Latest Estée Lauder Video Teen Vogue
15. Forbes profiles Lauder family Forbes
16. Estee Lauder to up stake in Forest Essentials Economic Times
17. Youtube Channel of Estée Lauder Youtube
18. Why Estee Lauder Is Buying This Cosmetics Brand for $1.45 Billion Fortune
19. LinkedIn page of Estée Lauder LinkedIn
20. History of the Estée Lauder Pink Ribbon Estée Lauder