20 Aug 2018
Posted in Consumer
Estée Lauder’s strong sales performance driven by millennial-focused brand acquisitions, positive sales in China, and premium product innovation
Following today’s (20 August 2018) release of Estée Lauder’s Q4 2018 results,
Iliyana Mesheva, Associate Analyst at GlobalData, a leading data and analytics company, offers her view on the company’s performance:
“Estée Lauder’s fourth quarter results show continued strong sales growth with a positive net sales increase of 14% driven by new product launches and the company’s increasing appeal amongst younger consumers through beauty brand acquisitions.
‘‘By acquiring niche make-up brand players like Too Faced and BECCA, Estée Lauder has increased its appeal with millennial consumers as both brands have inclusive positioning and are known for make-up products formulated to suit diverse skin tones. This has challenged previous perceptions of a company known for targeting an older audience and helped it to diversify the portfolio and its consumer reach.
“On a regional level, Estée Lauder has performed particularly strongly in China. This has been driven by strong double-digit growth in China and Hong Kong, accelerated by the local performance of M.A.C and Estée Lauder Cosmetics. Both these brands are sold through Alibaba’s online platform TMall and feature campaigns on WeChat, reaching out to the significant socially-engaged customer base present in this market.
“Looking ahead, the Chinese market’s aspirational consumer base will be a key focus for Estée Lauder’s prestige beauty products and acquired brands in the next quarter, with the company’s marketing strategy set to target millennials through strong product engagement and an increased digital presence.’’