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Global cosmetics maker Estée Lauder Companies is focused on expanding market share and increasing sales by developing new brands, targeting younger shoppers worldwide and customising products to meet consumers’ needs across cultures, its CEO said on Thursday.
Estée Lauder Chief Executive Officer Stéphane de La Faverie, speaking at the Reuters NEXT conference in New York, said the Tom Ford brand parent sees the middle class that is emerging globally as a key market between now and 2030.
The company, which is in the middle of a turnaround, is also looking to rebalance growth by embracing the Americas and emerging markets, though not at the expense of China, whose consumers have faltered with their spending in recent years, he added.
Estée Lauder is focused on “local relevance,” La Faverie said, adding that the company has taken minority investments in Chinese, Mexican and Indian beauty labels.
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“Estée Lauder, Clinique, Mac, their logo is the same everywhere but how we activate in Europe, China, India, is different,” he said.
Estée Lauder’s skin care brand The Ordinary, which has products ranging from $9 to $34, has gained popularity with Gen-Z shoppers, whose buying power is increasing. Estée’s fragrances from other legacy brands including Tom Ford can start at $255 for a 30-milliliter bottle.
La Faverie took the helm of the company at the beginning of the year, and the stock has climbed about 37 percent since.
Its Tom Ford brand, a fashion label it acquired in 2023 in its biggest deal to date, has had strong growth the last few quarters, he said.
“It’s finding its footing in Europe and Asia through perfume and makeup,” he said.
In the United States, which is in the middle of the key holiday shopping season, consumers have shown resilience even over just the last few days, La Faverie said.
“This season, we call it the Super Bowl of beauty,” La Faverie said, explaining it starts with Diwali in India in the fall.
By Jessica DiNapoli, Arriana McLymore and Susan Heavey
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