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President and CEO Fabrizio Freda attributed the group’s excellent showing to “compelling product innovation, targeted advertising and marketing investments, and selective distribution expansion.” For instance, the rollout of contouring kits from Smashbox and the MAC collection inspired by Disney’s Cinderella fueled sales growth. The performance of its legacy brands such as Estée Lauder and Clinique also boosted the company’s earnings.
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Meanwhile, the company noted that its robust online sales, especially in China, its third-biggest market after the U.S. and U.K., were huge contributions to its healthy third-quarter performance. Online services that helped expand the company’s digital presence are how-to-videos and live chats with beauty experts, mimicking those seen in traditional counters.
Its social media marketing efforts also paid off handsomely for ELC, thanks in part to the hiring of rising model Kendall Jenner as Estée Lauder’s brand ambassadress. Jenner provides a powerful online platform for Estée Lauder to launch new products and attract younger customers. The certified “instagirl” has a 30-millon strong following across social media sites Facebook, Instagram, and Twitter.
Image Source: socialmediaexaminer.com
Looking into the future, ELC is optimistic that its recent wave of acquisitions will result in a stronger market performance in the coming months. It is also banking on upcoming brand collaborations and product innovations to drive sales growth. It also expects its online sales to grow steadily, pegging a 30 percent overall increase this year.
Executive chairman William Lauder is the unseen hand behind Estée Lauder Companies’ strategic moves that keep the company on top of the global beauty market. Learn how prestige brands power ELC’s portfolio here.
