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

More Media