Posts Tagged ‘Estee Lauder’

EDIT AND DELETE!

Thursday, June 15th, 2017

Estée Lauder’s spin-off brand launched in 2016, Estée Edit, is being discontinued, according to a report in WWD.com.  The youth-oriented line, fronted notably by Kendall Jenner and Irene Kim, are currently being slashed by as much as 30%, offering fans a last opportunity to score some of their favorite products at both Sephora and the brand’s e-commerce site.

In a prepared statement, Estée Lauder concluded, “Estée Lauder created The Estée Edit collection for Sephora to recruit millennial consumers. Simultaneous efforts by the core Estée Lauder brand have recruited millennials via digital and makeup at an unprecedented rate. Therefore, after a year of valuable insights and learnings, we have decided that a separate brand in North America dedicated to recruiting millennials is no longer necessary. We are committed to our partnership with Sephora and we are working closely to strengthen our business in Sephora and develop exciting new programs.”

THE BREAK UP WITH MAKEUP AT DEPARTMENT STORES

Wednesday, December 21st, 2016

Do you remember the last time that you made a purchase from the Clinique or Estēe Lauder counter at your local department store?  According to a new report, those visits are becoming less frequent, in favor of on-line shopping patterns.  In fact, department stores are one of the few categories of United States retail sales which have declined from a year ago.  While most of this loss is attributed to the apparel market, cosmetics sales have also been greatly affected.  “U.S. beauty and cosmetics sales are shifting away from department stores and mass merchants to online and specialty stores,” says Shelly Banjo for Bloomberg.  On-line retailers, such as Amazon, DermStore, FragranceNet, and specialty stores, such as Sephora and ULTA, have all taken a larger market share, due to their robust on-line operations.  The exception to the trend, however, has been the J.C. Pennney Co., who opened Sephora boutiques in more than half of its store locations.

According to the article, “the Selfie Generation has flocked to beauty brands that stoke sales with social media and technological innovations including plumping lipsticks, makeup-contouring kits, and nail polishes that go on like spray paint.”  In fact, consumers turn to vloggers on YouTube and Snap Chat to follow the latest makeup trends, rather than seeing them at the department store counter or in the pages of a magazine.

 

THE BUSINESS OF BEAUTY: TWO FACED COSMETICS

Wednesday, November 16th, 2016

toofaced-christmas-gift-sets_1Adding a new jewel to its crown, the Estée Lauder Companies, Inc. has negotiated a deal to purchase Too Faced Cosmetics, for approximately $1.45 billion, according to a recent article in Bloomberg.  The Los Angeles-based indie beauty brand, created by Jerrod Blandino and Jeremy Johnson, has a huge presence among millennials, with an impressive social media capture of more than 7 million Instagram followers.  With its Better Than Sex MascaraChocolate Bar Eyeshadow Collections, and Melted Long Wear Lipsticks, the brand is expected to exceed $270 million in annual sales.  As opposed to the traditional department store model, Too Faced is known for its strong internet business and relationship with specialty stores.

This follows a large trend in acquisitions among cosmetics companies.  In October, Coty Inc. acquired a large portion of Proctor & Gamble’s beauty division for $12.5 billion, while over the summer Revlon announced its intention to buy Elizabeth Arden for $419 million and L’Oreal SA agreed to purchase IT Cosmetics for $1.2 billion.  “We like the acquisition,” Jason Gere, an analyst at KeyBanc Capital Markets Inc., said in a report. “Estee Lauder has a demonstrated history of success in driving scale of smaller, high-growth brands on its global platform.”