Lauder Innovation Shift: Deemphasize Blockbusters, Let Winners Evolve

“The future of our innovation is changing,” according to leadership at Lauder, which is reducing innovation risk by cutting back on blockbuster launch investments. It’s a sensible strategic move at a time when consumers are avid about experimenting with and owning a rich variety of products, the firm suggests.

The Estee Lauder Companies Inc. continues to inspire investor confidence with reported growth and even stronger projections despite challenges in the Millennial-led digital era that have required some marked adaptations in its business model.

Like other seasoned cosmetics players, Lauder increasingly has been investing in its digital platforms and focusing on developing markets for growth, but the beauty giant also is expanding outside of traditional prestige retailer doors to specialty outfits, including Sephora and ULTA locations, which has raised some concern among analysts about possible brand dilution

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