1. HBW Insight
  2. >>Beauty
  3. >>Business
  4. >>Strategy

Lauder Evolution: Distribution Shift All About Consumer Reach

Lauder brands’ growing presence in Sephora doors and the specialty multi-retailer channel in general doesn’t compromise their prestige positioning – and anyway that’s beside the point, CEO Fabrizio Freda suggests. In an evolving marketplace, Lauder’s distribution strategy is to appeal to Millennials who otherwise might not be reachable.

The Estee Lauder Companies’shift away from department stores in favor of specialty multi-retailers has raised concerns among investors about possible dilution of its prestige image, but leadership suggests they may be missing the point.

During the firm’s Aug. 19 call to discuss its fiscal 2016 fourth-quarter and full-year results, analysts asked whether moving high-end...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on HBW Insight for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Strategy

Scent News: Givaudan Buys Brazilian Fragrance House, DSM-Firmenich Taps Fine Fragrance President

 
• By Eileen Francis

Swiss fragrance company Givaudan SA will acquire Brazilian fragrance house Vollmens Fragrances, as DSM-Firmenich names Jonathan Simon president of fine fragrance.

Product ‘Dupes’ Increasingly Popular Among Price-Wary Consumers Across Globe – Survey

 
• By Eileen Francis

Twenty-eight percent of global consumers polled in a survey included in the report, 'The State of Fashion: Beauty,' have ‘consciously’ purchased product dupes, while 53% are open to buying them; growing acceptance of knock-off products is driven in part by inflation.

US Consumer Health Sector Vigilant To Avoid Stumbling On Trump’s Tariff Twists And Turns

 
• By Malcolm Spicer

In remarks at recent investor conference reflecting comments from across the US consumer health sector, Kenvue chief Thibaut Mongon says, “I'm going to state the obvious. The environment is very fluid.”

ELC Veteran Returns To Lead Makeup, While C&D, Charlotte Tilbury Strike Promo Deals; Beauty Roundup

 
• By Eileen Francis

Lisa Sequino returns to Estee Lauder to lead the strategic direction and global growth of its makeup brands. Church & Dwight has signed up two-time Olympic Gymnast Jordan Chiles as an ambassador for its Hero Cosmetics skincare brand. Plus more beauty news in brief.

More from Business

Beauty Deal Roundup: Ulta Acquires British Beauty Retailer SpaceNK, Unilever Picks Up Dr. Squatch

 
• By Eileen Francis

Illinois-based Ulta Beauty, Inc. acquires leading British beauty retailer SpaceNk from Manzanita Capital for an undisclosed price. Unilever PLC purchases Dr. Squatch personal care from Summit Partners.

Beauty Market Uncertainty Stalls Large M&A, But Middle-Market Deals Continue – Capstone

 
• By Eileen Francis

Middle-market beauty deals, which are defined as those with targets of $10m to $100m worth of enterprise value, are driving transaction momentum year-to-date that is in-line with levels during the same period last year, according to Capstone Partners’ Consumer Investment Banking Group.

Perrigo Implements Streamlining Plan With Sale Of Dermacosmetics

 
• By Tom Gallen

Perrigo stands to gain up to €327m with sale of brands such as ACO and Emolium to KKR.