Lauder Tailoring Strategy To Meet Millennials, Makeup Demand
This article was originally published in The Rose Sheet
Lauder is deemphasizing anti-aging in favor of instant-benefit skin care and positioning skin care as a base for optimal makeup results, among other tactics to engage Millennials and drive sales. Company executives discussed Lauder's evolving approach across product categories, along with a new cost-savings initiative dubbed Leading Beauty Forward, during its third-quarter earnings calls May 3.
You may also be interested in...
The beauty giant's second-quarter performance reflects global momentum in specialty retail and online channels and accelerating growth in China in particular. Analysts previously expressed concerns that increased distribution away from department stores could dilute Lauder's prestige positioning, but the firm consistently has defended the shift as essential to its future with younger consumers
Firm's skin-care sales jumped up 16% in the fiscal 2018 first quarter, fueled by strong showings from Estee Lauder, La Mer, Origins and mask specialist GLAMGLOW, whose ascent shows no sign of slowing. Meanwhile, MAC's increasingly diversified distribution model is bearing improvements in North America.
Getting younger consumers to embrace skin care with the same enthusiasm they bring to makeup has been a challenge for Lauder. The firm's investment in DECIEM gives it a stake in the "abnormal" startup's umbrella of largely skin-care brands, which have given rise to new conversations and levels of excitement online among millennials and those who think like them.