Estee Lauder

Topics: Financial ratio, Financial ratios, Estée Lauder Companies Pages: 25 (8332 words) Published: January 24, 2011
Estee Lauder Company was founded in 1946 by Estee Lauder and her husband Joseph Lauder. It is a manufacturer and marketer of four cosmetic product lines, which include skin care, makeup, fragrances and hair care products in the world. In U.S. prestige cosmetics category, Estee Lauder Companies has a market share of about 46 percent. In 1948, Estee Lauder established their first department store account with Saks Fifth Avenue in New York. During the next 15 years, the products were selectively distributed in other stores in the United States. By 1960, Estee Lauder was an international corporation selling their products in the famous Harrod’s Department Store in London. Within a few shorts, they opened outlets in Central America, Denmark, Hong Kong, Italy, Spain, Sweden, Belgium, New Zealand and Switzerland. The first Estee Lauder products sold were Super Rich All Purpose Crème, Crème Pack, Cleansing Oil, and Skin Lotion. Additional brands such as Aramis, a line of prestige fragrance and grooming products for men was launched in 1964, and Clinique, the first dermatologist-guided, allergy-tested, fragrance-free cosmetics brand was launched in 1968. Prescriptive, a color authority with an advanced collection of highly individualized products, was founded in 1979. Lab Series Skincare for Men, specializing in men’s treatment was debuted in 1987. Origins, a plant-based line of skin care, makeup, bath or body and sensory therapy product were introduced in 1990. Besides this, the company signed a global licensing agreement with designer Tommy Hilfiger in 1993. In 1994, the Estee Lauder acquired a majority interest in MAC, but the acquisition was completed in 1998. In 1995, the company acquired a second makeup artist line, Bobbi Brown essentials. Estee Lauder also acquired the luxury skin care brand La Mer and signed a global licensing agreement with Kiton, which is an Italian fashion house for beauty products. In 1997, Estee Lauder signed a licensing agreement with American fashion designer Donna Karan. After that, it acquired Aveda, a leader in the prestige hair care industry. By 1967, Mrs. Estee Lauder was named one of ten Outstanding Women in Business in the United States by business and financial editors. A year later she received the Spirit of Achievement Award from Albert Einstein College of Medicine at Yeshiva University. This was the same year that the company expanded again by opening Clinique Laboratories, Inc. In 1998, Estee Lauder began to sell a certain products over the Internet and it was one of the first major cosmetics firms to offer online shopping. In 1999, the Estee Lauder Companies created a new division called ELC Online, to manage all online strategies and activities for all of its brands. During this same time frame, other acquisition included Jo Malone, Stila Cosmetics, and In 2000, Estee Lauder acquired a majority equity interest in Bumble and Bumble LLC, an upscale hair salon and developer, marketer and distributor of quality hair care products. In 2003, Darphin (a Paris-based prestige skin care company) and Rodan+ Fields (a dermatologist-created skin care line) were acquired and signed a licensing agreement with Michael Kors, an American fashion designer for beauty products. In 2004, the company’s teen-oriented Jane business was sold and Estee Lauder launched Beauty, Flirt, and Good Skin through its BeautyBank division, followed by Grassroots in 2005 and Daisy Fuentes in 2006. Besides this, the company acquired Ojon Corporation, a Canadian prestige hair care company that makes products derived from the Ojon tree in Central America at 2007. In 2008, BeautyBank launched Eyes by Design, the first prestige cosmetics line to focus on eye products, sold exclusively on HSN and Today, Estee Lauder Companies has 26 brands, sells products in over 130 countries and territories, and the employs over 22,000 people worldwide. Although Mrs. Estee Lauder...
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