REPOST: Estée Lauder Acquires Rodin Olio Lusso

Beauty company Estée Lauder ended October with not just one, but two acquisitions. After announcing its purchase of perfume maker Le Labo on October 15, the cosmetics giant closed the month with the purchase of skincare company Rodin Olio Lusso. Fashionista.com’s Eliza Brooke has the details below:  

Image Source: fashionista.com

After inking a deal to acquire Le Labo just a few weeks ago, Estée Lauder has added one more blue chip brand to its portfolio: Rodin Olio Lusso, the skincare company founded by stylist Linda Rodin whose flagship face oil has been winning over beauty aficionados since 2007. Not only is it Estée Lauder's second acquisition in the last month, but it's the second since the brand acquired Smashbox in 2010, ending a significant M&A dry spell.

The terms of the deal have not been disclosed, nor did a rep for the company respond to a question about Rodin Olio Lusso's sales figures over the last few years. Le Labo, which occupies a similarly known-but-niche spot in the beauty industry, reportedly generates $20 million to $30 million in sales each year.

Le Labo and Rodin Olio Lusso share a certain cushy status. Favorites of fashion and beauty editors, they seem niche but are ubiquitous in the press and are expensive but not as unaffordable as a brand like La Mer (also an Estée Lauder portfolio company). While Le Labo operates its own mixologist-type shops, Rodin Olio Lusso has a home at stores like Barneys, Colette and Liberty. Of course, it helps that Linda Rodin has been in the fashion industry as a model and stylist for quite a long time -- and that at 65, she is the pinnacle of aging with style.

As Estée Lauder President and CEO Fabrizio Freda put it in a statement, "Rodin Olio Lusso is the ultimate ‘insider’ beauty brand," noting that the team believes "it has the potential to be a high-growth global skin care brand that strategically enhances our portfolio." Basically: There's a lot of brand equity happening here, but not too much scale. Yet.

If this shopping spree continues, we'll be watching to see who Estée Lauder poaches next.

The recent acquisitions of Estée Lauder Companies further strengthen the conglomerate’s reign over the global beauty market, something that William Lauder vowed to uphold when he took the helm as executive chair. Learn more about the growing family of ELC here.

REPOST: Luxury heavyweights eye Africa’s newly affluent

After Asia, Africa and the region’s new elite are now being eyed by luxury brands such as Estee Lauder. In fact, a recent study now pegs the continent’s luxury market at around 2 billion. Learn more about the various strategies that global brands are embracing as they foray into the continent in this FT.com report.  

Image Source: ft.com

Sub-Saharan Africa was dismissed for decades by the luxury industry, and has attracted the attention of international heavyweights only in the past two years.

Hugo Boss, Estée Lauder and Ermenegildo Zegna are among those who have established retail outlets in Nigeria’s big cities, and others are following suit with the help of local partners.

Meanwhile, South Africa and Kenya, long-established shopping hubs for wealthy western tourists, have seen a boom in retail and mall developments that is prompting investment by the world’s largest brands.

But with natural resources fuelling economic growth elsewhere in Africa, could the luxury industry have found fresh frontiers for growth beyond its traditional strongholds?

A recent study by management consultancy Bain & Co would suggest so. It estimates that the continent’s luxury market is now worth €2bn, thanks to a 35 per cent rise in overall sales in the past four years.

“Our target customers are the emerging middle class, the established middle class and the affluent African consumer who’s probably extremely well travelled and brand savvy,” Sue Fox, managing director for Estée Lauder in sub-Saharan Africa, told journalists earlier this year.

As well as opening a crop of MAC stores in Nigeria, the US beauty giant also plans to enter Botswana and Zambia next year, It also has announced a move to take its fragrance brands into Ivory Coast, and has identified property opportunities in Mozambique, Angola, Ghana, Kenya and Tanzania.

William Lauder, the group’s chairman, told the Financial Times that the rise in power of the global traveller – particularly from sub-Saharan Africa – had triggered the company’s push into new territories.

“In 2008, MAC opened a store in Paris’s Strasbourg St Denis, a neighbourhood with west African beauty supply stores frequented by immigrants and away from more traditional upscale precincts,” he says.

“Wealthy visitors soon spread the word and the brand garnered a cult status back in that region before Estée Lauder had even set foot in the francophone African market. That region is going to grow into a big business for us.”

A globetrotting moneyed elite from new African frontiers is also fuelling luxury flagship sales on the more upmarket streets of recession-mired pockets of Europe. For example, Gucci executives say privately that Angolan custom in Portugal grew 90 per cent last year – to represent just over half of sales there.

“I am hearing more and more about the Angolan appetite for luxury,” says South African retailer Hanneli Rupert, adding that there has been a noticeable rise in African frontier market spenders coming to South Africa to make premium purchases.

Industry experts also remain sceptical of a rapid rollout of retail operations in these countries in the near future.

While many western brands are combating this by holding “trunk shows” or private dinners to entice new clients, business growth will remain relatively modest until a greater on-the-ground presence can be established.

John Obayuwana, the founder and managing director of the Polo Luxury Group, says: “There are, and will continue to be, considerable challenges for western brands looking to enter the market beyond South Africa. Even in Nigeria there are big headaches, let alone elsewhere.” His company acts as local partner and intermediary for several luxury groups.

He adds: “First they have to deal with the government, with all the regulations, duty taxes, bureaucracy and even corruption that goes with establishing a business in these places. Then, you must deal with the absence of any retail infrastructure. It’s going to be really tough going for some time to come.”

Some investors think the solution to providing African consumers with access to luxury products could lie closer to home. In 2010, Actis, a private equity fund focused on emerging markets, acquired Vlisco, a Dutch company that manufactures and distributes patterned wax fashion fabrics. Manufacturers and consumers buy them to create bespoke dresses in its exotic African prints.

The company has nearly doubled in size since it was bought, with two-thirds of its employees scattered across sub-Saharan Africa.

This unusual platform has proved extremely attractive to those looking to benefit from a large young African population and rising middle class.

Murray Grant, an Actis partner, explains: “There is a considerable consumer population emerging in Africa but it is scattered across 55 countries. What made Vlisco a sizeable business opportunity was the fact it had successful operations in so many of them.”

Ms Rupert says that she is noticing a growing trend for African luxury consumers looking to buy local brands or product.

“Beyond fashion ... there have been huge surges in demand for upmarket food and wines or home interiors with a strong African aesthetic.

“There is unquestionably a demand for Western luxury goods, but as the shopper base grows, so will a crop of homegrown contenders. It’s exciting to watch the market unfold.”


William Lauder’s keen business sense has helped grow the Estee Lauder Companies’ operations beyond traditional markets. For more news and updates about ELC’s global strategies, follow this Twitter account.

Aerin Lauder leaves her scent in the family legacy

The Lauder family tree has a leafy branch of successful descendants. Matriarch Estee Lauder set off the family's fortune when she founded her beauty brand in 1946. Since then, the family company has swelled in global influence and reach, and has, initially, looked internally to man its production and distribution channels. To date, William Lauder, grandson to the founder, holds chairmanship of the enterprise, which has a portfolio luxuriating in 30 brands.

Image Source: shopafrolic.tumblr.com

The next-in-lines don't seem to be wasting all this steam, either. Aerin Lauder, 43, has stormed into the club of billionaires with her sister, Jane, 40. Aerin has waved her aesthetic influence on the family company as an image manager and stylist, and as such has been entrenched in the conglomerate's aesthetic decisions. Considering that she is coming into business responsibilities built on cosmetics, Aerin is perfectly positioned to mimic her grandmother's success.

Image Source: beaut.ie

Recently, she came into her own with an eponymous lifestyle brand that, by the sheen of things, replicates the unmatched class of an Estee Lauder magasin experience. The brand Aerin clearly pulls a fresh and dainty approach from its namesake's personal tastes: Aerin Lauder's interior design credentials work an atmosphere of ease and elegance, of floral blooms neatly bleeding into linen print and home décor.

Image Source: cafleurebon.com

 Rightly, fragrances are the signature products, assortments of musk and clever essential oil mixes that do right by some of the most nostalgic and cozy ambiances. All senses are engaged in the Aerin lifestyle, which includes beauty, fashion, and even custom upholstery.

 Aerin is one of the brands in the portfolio of the Estee Lauder Companies. Visit the Estee Lauder website to know more about the beauty conglomerate's affiliations.

REPOST: Here's What Estee Lauder Has Done To Boost Its Share In Emerging Markets

The article below discusses how strategic positioning and focusing exclusively in prestige beauty products have helped Estee Lauder gain share in emerging markets despite its bleak macroeconomic environment. Forbes reports on ELC's unique approach to emerging markets.

Image Source: summer-romantic.blogspot.com

Estée Lauder, with a market capitalization of $31 billion, is an enterprise that manufactures various prestige cosmetic products across the skin care, hair care and make-up categories. The company operates primarily in the $77 billion prestige cosmetics market and reported revenues of approximately $10.4 billion in CY13. This roughly translates into a 13.5% market share in the prestige cosmetics market. In the last five calendar years, Estèe Lauder had expanded its market share from 11.5% to 13.5%. What is interesting is its ability to gain share despite weak consumer discretionary spending in most developed markets.

In this article, we briefly look at how Estèe Lauder’s strategic positioning across its geographic portfolio has helped the company gain share, despite a weak macroeconomic environment. We have a $75 Trefis price estimate, which is approximately in line to its current market price.

Image Source: snobessentials.com

Capitalizing On The Aspiring Emerging Market Consumer

The weak economic outlook in developed consumer markets such as North America and Europe, since the economic downturn in 2008-09, has forced businesses to look for other growth avenues. For companies in the consumer discretionary goods business, investments made in the Asia-Pacific and other emerging market regions prior to the economic crash in 2008 have largely offset the weaknesses from the developed markets. Factors such as increasing disposable incomes and a younger population base in emerging markets has provided a unique demographic advantage to cosmetics companies.

However, not every cosmetics player has been able to capitalize on the advantage of the emerging markets. Mass-market players such as Avon Products and Revlon have struggled to maintain sales momentum, particularly in the Asia-Pacific region, with Revlon announcing its exit from the large Chinese cosmetics market in January 2014. Compared to deep-pocketed players like L’Oréal and Estèe Lauder, Avon and Revlon had limited R&D and advertising budgets for developing and promoting locally relevant products. The low advertising budgets and limited R&D spend has restricted Revlon and Avon to launch new and trendy products and refresh their product cycles regularly. In absolute terms, Estèe Lauder had R&D expenses of over $100 million last fiscal, more than what Revlon and Avon combined spent last fiscal.

Image Source: leshampiste.com

From a product perspective, what set Estèe Lauder apart from the mass-market cosmetics manufacturers was the exclusivity in its product portfolio. Being a prestige beauty product manufacturer, Estèe Lauder has faced limited competition from either domestic or international mass-market brands, adding to its appeal to the emerging market consumer. Estèe Lauder’s strong performance in the Asia-Pacific market is evident from its strong revenue growth. Regional revenues increased about $110 million over fiscal 2012, reaching $2.12 billion for fiscal 2013. Excluding currency volatility of 1%, constant currency revenues grew 6% in fiscal 2013.

Looking ahead, Estèe Lauder has a much stronger strategic advantage against bigger competitors such as L’Oréal, Unilever and P&G. The company’s strategy to focus exclusively in prestige beauty products seems to have paid off in the emerging markets. Furthermore, the gradual recovery in the developed markets should expand discretionary income levels, enhancing consumer interest in prestige cosmetics. This should drive incremental revenues higher for Estèe Lauder in CY2014.

Market expansion is one of the core goals of Estee Lauder Companies Executive Chairman William Lauder. Read his executive bio on this Facebook page.

REPOST: Estée Lauder chairman: Focus expansion efforts on where the future might be

William P. Lauder, executive chairman of Estee Lauder Companies, discusses in this Luxury Daily article the firm’s expansion efforts, especially in emerging markets, and how these ventures will further boost the brand’s retail strategy.

MEXICO CITY, Mexico – Estée Lauder Cos.’ expansion practices are marked by entering emerging markets ahead of other companies despite the increased risk, according to the “Building Empire” session May 13 at the FT Business of Luxury Summit.

Estee Lauder’s Pure Color Envy lipsticks  | Image source: luxurydaily.com

Understanding risk tolerance is a must when embarking on any new project, especially when setting up shop in marketplace that is still developing. As one of the world’s most valuable brands, Estée Lauder strives to introduce its products ahead of competitors to better understand emerging markets.

“Beauty is the entry point of luxury in every circumstance,” said William P. Lauder, executive chairman of Estée Lauder Cos., New York.

“Our brands are global,” he said. “But our consumers are global, too.
“We look to gateway cities around the world that represent the best of what our brand has to offer. These are cities such as Paris, London, New York and maybe even Hong Kong now.”

Boundless beauty

Estée Lauder, founded by Mr. Lauder’s parents in 1948, set the pace for establishing a presence in emerging markets.

When the brand was launched after the Second World War, the United States was essentially an emerging market that had rapidly evolved from an post-agricultural, industrial society to what we see today.
As the U.S. grew, so did Estée Lauder. By 1960, the brand entered the United Kingdom, Japan in 1966 and Mexico in 1970.

Mr. Lauder explained that this business model has allowed Estée Lauder to scale to where it is today.

Estée Lauder‘s summer 2014 Bronze Goddess collection | Image source: luxurydaily.com

When entering a market that other brands may have been hesitant to enter, Estée Lauder looks to inspire the rising middle class woman to treat herself well. Compared to other luxury categories, beauty products are more accessible.
The cosmetics brand has steadily followed the rise of the middle class consumer.
For instance, in 1989, after the collapse of the U.S.S.R, Estée Lauder was the first Western brand available for purchase in Russian rubles.

To get a sense of Estée Lauder’s success in emerging markets, Mr. Lauder said that in 1996, 60 percent of sales were from North America comprising Canada and the U.S. Today, in comparison, 70 percent of sales come from outside North America.

An Estée Lauder beauty counter | Image source: luxurydaily.com

This has been accomplished by matching Estée Lauder brands to the local market place. Estée Lauder evaluates how and where the consumer prefers to shop and travel to determine the best retail strategy.

For instance, Estée Lauder’s M.A.C brand is one of its most successful in emerging marketplaces. The brand is especially popular in Brazil where there are M.A.C boutiques, but the bricks-and-mortar location in New York’s Times Square has a consumer base that is 40 percent Brazilian.

To better serve these consumers – who are mostly tourists – at this location, as well as shops in Miami, Estée Lauder hires Portuguese-speaking sales associates to work at the store.
This is similar to Australian locations, where M.A.C products sell better if there is a Mandarin-speaking sales associate to accommodate the high number of Chinese travelers.

In China, there is no true domestic beauty brand, thus imports are stronger and more popular.
Estée Lauder aims its business at the top 10-15 percent of Chinese consumers, a group roughly larger than its European base.

By entering the marketplace earlier than others in 1993, Estée Lauder secured a relationship with Chinese consumers. As the middle class grew and women began having more disposable income, Estée Lauder saw its return on investment.

Estée Lauder‘s Chinese Web site | Image source: luxurydaily.com

Interestingly, Estée Lauder’s fourth-best selling store is a Macy’s, located in New York’s Flushing, Queens, neighborhood.

Dubbed as “Little Hong Kong,” by Mr. Lauder, the residents of the neighborhood look to Macy’s beauty counter to purchase Estée Lauder products to ship to relatives and friends in China to avoid the high import duties.

This demographic is not consistent in every region.

For example, in London’s Knightsbridge neighborhood, Estée Lauder sees a high percentage of Middle Eastern consumers during the summer months, but this has started to be disrupted.

Estée Lauder counters at retailers such as Harrods and Selfridges have seen a rise in Nigerian consumers. Harrods lists Nigerian consumers among the department store’s top 10 spenders.

Mr. Lauder stated that Estée Lauder is beginning to invest in Sub-Sahara Africa in countries such as Kenya and Nigeria. This region of the world, due to its high concentration of wealth from the oil industry, is the next frontier for the beauty marketer with bricks-and-mortar boutiques slotted for Lagos.

Digital beauty

While Estée Lauder prides itself on its aspirational model and high price points, it has also been able to interact with the consumer where she wishes to shop, which is increasingly online.

Lancôme Paris, Kiehl’s and L’Oréal Paris clinched the top three spots in L2 Think Tank’s “Digital IQ Index: Beauty 2013″ study as competition escalates on a variety of fronts. Although L’Oréal Group grabbed the top three finish, Estée Lauder had five brands in the top ten and the highest average digital IQ for its 11 brands at 119 (see story).

Mr. Lauder explained that the brand now tests the water using ecommerce. He also noted that since ecommerce was launched in 1997, the brand sees more click-throughs for the store locator than shopping carts.

This shows the fundamental change in consumer behavior, but also supports Estée Lauder’s success at creating a model conducive to how enthusiasts wish to shop.

“In our industry, most of our competitors are similar in capital,” Mr. Lauder said.

“[Estée Lauder] is more patient,” he said. “We’ve seen a nice return by being patient and entrepreneurial.”

William Lauder’s vision for Estee Lauder Companies solidifies further the company's leadership in the beauty market. Follow this Facebook page to learn more about ELC's upcoming business ventures.

Estée Lauder creates Advanced Night Repair store at Beijing Airport

Estée Lauder strengthens its position as the leading travel retailer in the Asia-Pacific market with the launch of Advanced Night Repair concept store at Beijing Airport. The travel retail channel is one of ELC’s strongest distribution networks which has grown at thrice the pace of international passenger growth rate in FY2013. The article below discusses how the newly opened store will shape ELC’s history of market leadership.

CHINA. Estée Lauder has created an Advanced Night Repair Synchronized Recovery Complex II concept store, in partnership with Sunrise Duty Free, at Beijing Capital International Airport Terminal 3.

The boutique, operational throughout April, showcases the brand's best-selling serum and how it supports a natural night-time purification process called Catabolysis, which is vital to younger-looking skin.

Image Source: moodiereport.com

The concept store features a luxurious city loft design and incorporates exterior glass windows that expose a city skyline, and sparkling, starry night-style lighting within the exterior canopy and store ceiling. A lounge area in the centre aims to offer travellers a welcoming environment.

Estée Lauder Beauty Advisors are on hand to educate consumers on the extensive clinical, sensory and safety testing of Advanced Night Repair Synchronized Recovery Complex II, which has been completed on over 1,000 women around the world. Caucasian, Black, Indian, Hispanic and Asian women – including Japanese, Chinese and Korean consumers – were all featured, demonstrating that Advanced Night Repair Synchronized Recovery Complex II is ideal for all skin types and proven for all ethnicities.

Estée Lauder introduced the concept of night-time repair to the anti-ageing category in 1982, when Night Repair – as it was then known – revolutionised the segment. The formula, presented in the now-iconic “little brown bottle” with the apothecary dropper, rapidly became one of the best-performing skincare products in Estée Lauder history.

The latest formulation features new ChronoluxCB Technology, which is said to take advantage of the restorative power of night by combining potent purifying and synchronising technologies to maximise nightly renewal of the look of skin.

Advanced Night Repair Synchronized Recovery Complex II is claimed to dramatically reduce the look of every key visible sign of ageing for a significantly younger look. Lines and wrinkles look significantly reduced and skin is strengthened to help prevent further damage, according to the brand.

In addition, there are High Touch elements, featuring consultations via digital tools, including a skin analyser and imatch foundation finder. 

Estee Lauder Chairman William Lauder remains true to the company’s legacy of leadership in the beauty sector as he continues to establish ELC as a strong travel retailer within the Asia-Pacific region. Follow this blog for more news and information on ELC’s growing portfolio of prestige skincare brands.

REPOST: Higher Passenger Traffic From Asia-Pacific Should Bolster Estee Lauder Travel Retail Sales

Forbes analyzes how the growth in Asia-Pacific passenger traffic would drive the future of Estee Lauder Companies in the travel retail sector.

Image Source: chinadaily.com.cn

 

In FY2013, prestige beauty product maker Estée Lauder reported sales of approximately $10.2 billion compared to $9.7 billion in sales in FY2012, a 5.2% increase. The company sells its products through various upscale departmental stores, specialty retailers, prestige salons and spas. In total, Estée Lauder estimates it has close to 30,000 points of sale within these distribution channels, generating sales of its beauty products across the world. Additionally, the company also markets its products through freestanding stores, duty-free and travel retail outlets worldwide, and also its own and other authorized retailer websites.

In this note, we provide an analysis of Estée Lauder’s travel retail business, underlining various factors that impact the division’s performance and its potential value contribution to overall top line for the company. We have a $75 Trefis price estimate for Estée Lauder, which stands at an 11% premium to its market price.

A Look At Estée Lauder’s Travel Retail Business

Travel retail sales for Estée Lauder increased to over $1 billion in FY2012, driven by the increase in global passenger traffic. For fiscal 2013, sales from the travel retail channel grew at thrice the pace of global passenger growth rate. According to data from the IATA, global passenger demand expanded 5.2% in 2013, from close to 3 billion passengers in 2012. This should put Estée Lauder’s travel retail sales growth rate at over 15% for fiscal 2013, to stand at approximately $1,156 million. Much of the 15% growth rate in travel retail comes from the sale of skin care products. As a percentage of overall revenue, this marks a sizable 11.4% contribution from the travel retail channel for Estée Lauder.

Asia-Pacific Passenger Traffic Growth Should Support Strong Travel Retail Expansion

A major factor for travel retail revenues standing at three times global passenger traffic is the combination of expanding disposable income in the Asia-Pacific region, along with strategic positioning of travel retail outlets by Estée Lauder. The main customer base for a travel retail outlet is the global passenger, and hence, positioning such outlets in high traffic corridors is key to having a higher growth rate.

International passenger demand is the highest for the Middle Eastern region at 12.1% in 2013. Similarly, emerging market regions of Latin America, Africa and Asia-Pacific registered growth rates of 8.1%, 5.5% and 5.3% respectively, in international passenger demand. Meanwhile, developed economies of Europe and North America had growth rates of 3.8% and 3% in international passenger demand. The Asia-Pacific region, in addition to outpacing passenger demand from developed economies, leads the world passenger traffic with a 29% share according to Airbus, followed by Europe and North America at 26% and 25% respectively.

Estée Lauder has capitalized on the strong demand for international travel from Asian customers and is the leading travel retailer in the Asia-Pacific market. By the end of fiscal 2012, the company had a total of 1,600 travel retail outlets worldwide. However, we believe a majority of these travel retail outlets to be situated in travel corridors popular among Asian customers, given their expanding discretionary wallet share. Going forward, the company could continue to establish itself as a strong travel retailer within the Asia-Pacific region by opening more stores.

Image Source thehighlow.com

Travel Retail Investments Should Lead To Market Share Expansion For Estée Lauder

Going forward, Airbus expects domestic travel within China and India to drive overall Asia-Pacific passenger demand, with annualized growth rates of 7% and 10% respectively through 2032. In addition to strong domestic travel growth, international travel corridors (such as Intra Asia, Asia – Middle East, Asia – PRC and Central Europe – Western Europe) are expected to see a higher demand in passenger traffic than the global growth rate of 4.7% annually through 2032. This burgeoning demand surrounding the Asia-Pacific and Middle East regions should drive future investments into travel retail from cosmetics companies.

We expect Estée Lauder to increase its investments into the travel retail business in the future, driven by the higher revenue growth rate from the division. Through its travel retail channel, Estée Lauder has achieved a 15% top line growth rate compared to 4% for overall revenues in CY2013. Additionally, growth in travel retail is primarily resulting from the sale of skin care products. At the end of CY2013, we estimate Estée Lauder’s skin care market share to stand at approximately 7.6%. However, higher investments into travel retail should be able to drive future revenues and expand its skin care market share in the future.

William Lauder has been able to shape Estée Lauder Companies into a brand-building powerhouse that it is today with his leadership and unparalleled commitment to innovation and creativity. Click here for more updates on ELC's expansive portfolio.

REPOST: Aveda founder, Horst Rechelbacher, dies at 72

Renowned eco-entrepreneur Horst Rechelbacher died in his home in Osceola, Wis., at the age of 72. He was diagnosed with pancreatic cancer in 2011 and is survived by his wife, daughter, and son. This article looks back on Rechelbacher’s life as an eco-warrior. 

Image Source: telegraph.co.uk

Rechelbacher, who will be celebrated as an eco-revolutionary, leaves the natural beauty world in mourning.
Austrian-born Rechelbacher was an organic beauty activist. His calling came during his early career as a celebrity stylist (he tended to the tresses of Sophia Loren, and ran four salons and a hairdressing school) during which a chemical build up in his salons - which caused him and his colleagues to become ill - shocked him into taking action. This was to be Rechelbacher's career, life, catalyst, and by 1968 - after a life-changing trip to India - he began developing a more natural line of products with his mother. Ten years later, those shampoos and conditioners were labelled Aveda.

A true visionary in the beauty industry, as WWD reports, Rechelbacher was among the first to seek fairtrade sourcing, non-toxic ingredients, organic certification, plant-based aromatherapy, and food-grade formulations for his new brand, Aveda.

So successful, and so cult-like, by 1997 Aveda was making $100 million a year. Rechelbacher, already moving on his next project, decided to sell the company to Estée Lauder for $300 million. Leonard A. Lauder, chairman emeritus of the Estee Lauder Cos., Inc, commented this week that Rechelbacher was a true visionary and unique human being: "Horst himself single-handily created a new industry."

Rechelbacher put a large chunk of the money from the sale into informing the rest of the world about the chemicals lurking in our beauty products, namely petroleum-based ingredients, often hidden in so-called 'natural' and 'organic' lines too.

Once his non-compete clause with Estée Lauder was up, the eco-warrior also launched his own line, Intelligent Nutrients - close to 100 per cent organic in its formulations, Intelligent Nutrients was a "reflection of what Horst wanted for himself," as Telegraph journalist Lucie Young reported back in 2011. In the same interview Young likened Rechelbacher's home, Deer View in Winconsin, to a "parallel universe, where green values are the norm."

Rechelbacher normalised organic beauty for the rest of us too. "Pesticides and insecticides make people sick and are destroying the planet," he once said. His solution was simple; "don't put anything on your skin that you can't eat." He was often seen seen drinking his Intelligent Nutrients hair sprays and serums which were all painstakingly formulated - I witnessed it first hand at one product launch in London.

"How he lived personally, he tried to express professionally," his widow, Kiran Stordalen, explained to WWD . "You see that in all the work he's done. It was a personification of who he was. He lived and breathed the mission and has left an incredible legacy."

The green beauty industry has lost a true visionary; "the planet has lost one of its most passionate friends. So have we," said a statement by Intelligent Nutrients. "To know Horst was to wake up to the world around you, to your own potential, to a new way of thinking." But as the statement adds, and the green beauty world hopes, "his impact truly does live on in salons, shops, fields and minds worldwide. And his mission continues."

Horst Rechelbacher founded the safe beauty products brand called Intelligent Nutrients (IN) after selling his skin care company Aveda to Estee Lauder Companies in 1997. ELC Executive Chairman William Lauder and the rest of the Lauder family are deeply saddened by the loss of a true visionary. Click here to learn how the global cosmetics conglomerate celebrates the legacy of Rechelbacher and the other founders of its brands.

REPOST: Estee Lauder keeps its billions in the family

Since its establishment, the Estee Lauder Companies has remained family-owned, with several of its leadership roles currently held by the founder's children and grandchildren. This article for the Houston Chronicle estimates how much an Estee Lauder heir is worth.
 

Aerin Lauder, chairman and creative director of Aerin LLC, attends the Paddle & Party for Pink fundraiser at the residence of Richard Perry, president of Perry Partners LP, in North Haven, New York, U.S., on Saturday, Aug. 17, 2013. The event raised $1.2 million for the Breast Cancer Research Foundation. Photographer: Amanda Gordon/Bloomberg *** Local Caption *** Aerin Lauder | Image Source: houstonchronicle.com

Aerin and Jane Lauder, the granddaughters of Estee Lauder, the founder of the beauty products company that bears her name, have become billionaires amid a bull market for cosmetics companies.

The sisters, who are among the youngest female billionaires in the world, each control more than 17 million shares of Estee Lauder Cos., according to filings with the U.S. Securities and Exchange Commission. The stock, which they own directly and through family trusts, is valued at about $2.6 billion, according to the Bloomberg Billionaires Index.


 Shares up 23 percent


The New York-based company's shares have risen 23 percent this year. An Estee Lauder spokeswoman declined to comment on their net worth. They have never appeared on an international wealth ranking.

"The company is continuing to take market share in the global beauty industry as investors flock to stocks which are best in their class," said David Wu, a luxury goods analyst at Telsey Advisory Group. "They're faring even better than their peers."

Aerin, 43, has worked at Estee Lauder for more than two decades and is the company's style and image director. She also runs a namesake fashion business. She's married to Eric Zinterhofer, a co-founder of private equity firm Searchlight Capital Partners.

 Jane joined the company in 1996. She was promoted to global president and general manager of Estee Lauder's Origins, Darphin and Ojon brands last year, according to a news release. She's married to Kevin Warsh, a former governor of the Federal Reserve Bank, and, at age 40, is the second youngest female billionaire in the U.S. behind Lynsi Torres, the 31-year-old owner and president of the In-N-Out restaurant chain.

The pair also serve on the company's board alongside their uncle, billionaire Leonard Lauder, and his son, William Lauder. The siblings' father, Ronald Lauder, has a fortune worth at least $3.5 billion, according to the Bloomberg ranking. Leonard Lauder, 80, the company's emeritus chairman and largest shareholder, has a net worth of $9.5 billion.

Left to right, Jane Lauder, Evelyn Lauder, Leonard Lauder, and Aerin Lauder pose at the 34th Annual FiFi awards ceremony hosted by The Fragrance Foundation in New York on Monday, April 3, 2006. Photographer: Adam Rountree / Bloomberg News | Image Source: houstonchronicle.com

 

Started in 1946


Estee Lauder started the company in 1946 by making skin creams on her kitchen stove and selling them to beauty salons. It became the largest closely held cosmetics company in the world before selling shares in a public offering in 1995. Lauder died in 2004 at age 97. Family members maintain more than 85 percent of its voting control. The company had $10.2 billion in revenue in the fiscal year ended June 30, selling products under brand names such as Aveda, Clinique and Bobbi Brown.

William Lauder, Estee Lauder's executive chairman, is credited for his great emphasis on keeping the heritage of the brand intact while effectively navigating the company's dual structure to reach its global growth aspirations. Visit this site to learn how he was able to surpass the challenges of running a family-owned business by sticking to the brand's core values and traditions.

REPOST: The Estée Lauder Companies Names Jane Lauder Global Brand President, Clinique

Jane Lauder's appointment as the Global Brand President of Clinique is part of Estée Lauder's organizational redesign efforts to drive the skincare brand's future success. The article offers an overview of Ms. Lauder's executive profile.

 Image Source: finance.yahoo.com

NEW YORK--(BUSINESS WIRE)--The Estée Lauder Companies Inc. (EL) announced today that Jane Lauder has been named Global Brand President, Clinique. Succeeding Ms. Lauder will be Stephane de la Faverie who has been named Senior Vice President/Global General Manager, Origins, Ojon and Darphin. Their new roles will become effective on April 1, 2014.

Both Ms. Lauder and Mr. de la Faverie will report to Lynne Greene, Group President of Clinique, Origins, Ojon, Aveda and Darphin. As announced in 2012, Ms. Greene was promoted to Group President as part of an organizational redesign to further align brands and provide high potential leaders with increased opportunities. Appointing Ms. Lauder to Clinique supports this evolution and will enable Ms. Greene to focus on the strategic direction of her brand portfolio and her other significant leadership responsibilities.

“Lynne’s vision combined with her industry-leading creativity has propelled Clinique’s exceptional global results and her close partnership with Jane will enable Clinique’s future success. Jane’s new role reflects her proven talent as one of our Company’s valued business leaders and innovative thinkers. Her ability to take brands and help maximize their global potential has been a key driver in our Company’s success,” said Fabrizio Freda, President and Chief Executive Officer, The Estée Lauder Companies.

In addition to supporting the Company’s organizational evolution, this appointment was a natural move for Ms. Lauder who earlier in her career was Senior Vice President, Global Marketing for Clinique where she was responsible for the brand’s overall strategic marketing and helped take the brand into new markets. As a result of her success in this role, Ms. Lauder later became Global Brand President, Origins, Ojon and Darphin.

“Jane is a very driven and talented leader. With her deep knowledge of today’s global consumer, I am delighted to have her back on the Clinique team where I know she will be extremely successful in advancing the long heritage of innovation,” said Lynne Greene. “Stephane brings significant experience in multi-brand leadership and expertise in skin care. His track record demonstrates his strength in successfully growing smaller brands and taking them into new markets. I am confident that both Jane and Stephane will bring outstanding growth and leadership to their brands.”

“It is our people who make our Company great. As Jane and Stephane continue on their Estée Lauder Companies journey, we grow as a Company—leveraging their strengths to drive our success,” said William P. Lauder, Executive Chairman, The Estée Lauder Companies. “Both are terrific leaders who consistently recognize global opportunities and most of all, inspire their teams to deliver excellence.”

Mr. de la Faverie joined The Estée Lauder Companies in 2011 as Senior Vice President, Global General Manager, Aramis and Designer Fragrances; shortly thereafter Lab Series and GoodSkin Labs were added to his responsibilities. Since joining the Company, Mr. de la Faverie has helped grow Aramis and Designer Fragrances’ profitability and expand the Company’s designer fragrance portfolio. Throughout his tenure in the beauty industry, Mr. de la Faverie has worked to build a number of skin care brands. Most recently under his leadership, the men’s skin care brand, Lab Series, successfully launched several major innovations globally.

Mr. Freda said, “Stephane is an ideal person to build on the success from Jane’s prior leadership. His keen ability to think globally and act locally will help the Origins, Ojon and Darphin teams continue to focus on their fastest-growing opportunities.”

In November of 2012, William P. Lauder and Fabrizio Freda announced an organizational redesign to drive the Company’s future success by further aligning brands, ensuring focus on the greatest opportunities globally and creating growth for talent worldwide. The appointments announced today are a continuation of this organizational evolution.

The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The Company’s products are sold in over 150 countries and territories under the following brand names: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M•A•C, Bobbi Brown, Tommy Hilfiger, Kiton, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, Darphin, Michael Kors, American Beauty, Flirt!, GoodSkin Labs, Grassroots Research Labs, Tom Ford, Coach, Ojon, Smashbox, Ermenegildo Zegna, Aerin Beauty, Osiao, Marni and Tory Burch.

An electronic version of this release can be found at the Company’s Website, www.elcompanies.com.

For William P. Lauder, executive chairman of The Estée Lauder Companies, success lies in one's ability to perform. Click here to learn how he was able to turn the cosmetics company into an $8 billion global enterprise by cultivating a culture of entrepreneurship and leadership excellence.