COVID-19 Impact on Estee Lauder
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"Coronavirus (COVID-19) Company Impact: Estée Lauder" reports key findings as of April 30, 2020 based on market analysis and brand diversification by industry and geography.
Overall, the cosmetic and toiletries industry is facing a severe impact from the COVID-19 pandemic. Due to its relatively limited geographic and sector diversification, Estée Lauder is in a highly difficult position. However, as a long-established company, its brands have loyal customers across the world, which may help it to overcome the crisis. Additionally, even though the company is under economic pressure, it is actively supporting society and its customers internationally, which potentially will build a strong resonance with consumers, and is likely to help its recovery in the future.
Scope
– Estée Lauder's presence in the personal hygiene category is expected to offer modest resilience against the adverse impact of COVID-19.
– With sales of make-up products expected to decline, Estée Lauder should focus on sectors that have a fair chance of performing well.
– Estée Lauder's skincare business is highly reliant on Asia, where the market is expecting to shrink faster than in North America or Western Europe in 2020.
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