02 Nov 2021
Posted in Consumer
Estee Lauder’s premium positioning pays off as consumers splash out on cosmetics and skincare, says GlobalData
Following today’s (2 November 2021) release of Estee Lauders’ trading results;
Nina Nowak, Senior Researcher at GlobalData, a leading data and analytics company, offers her view:
“Estee Lauder’s impressive 23% growth in net sales demonstrates the recovery of the cosmetics and toiletries market, after a difficult period that forced the industry to take a new look on brand strategies, product positioning, and retail models.
“Despite financial challenges faced by many shoppers, the premium-positioned Estee Lauder brands have achieved a great success in the challenging landscape. Estee Lauder’s commitment to upscale its image may have aided its growth, as 48% of global shoppers point to high quality products/ingredients being the main indicator of value for money in beauty and grooming products*.
“This substantial growth can also be credited to the recovery of the makeup category, fueled by post-lockdown demand for color cosmetics. Indeed, GlobalData’s survey found that nearly half (48%) of global consumers described their current spend on the category as ‘high’ (22%) or medium’ (26%).
“Renewed interest in make-up compliments the strong performance of the skincare category that captured consumers’ interest throughout the pandemic. Finally, the development of Estee Lauder’s e-commerce channel has also facilitated the success of the brand in 2021, allowing it to expand its audience via a strengthened online presence.
“The brand’s results bring optimism for the upcoming period for the cosmetics and toiletries market, projecting a full recovery of the category.”
*GlobalData’s Q3 2021 global consumer survey