Estée Lauder Companies
The Estée Lauder Companies Inc. is an American multinational manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products, based in Midtown Manhattan, New York City. The company owns a diverse portfolio of brands, distributed internationally through both digital commerce and retail channels.
History
The company began in 1946 when Estée Lauder and her husband Joseph Lauder began producing cosmetics in New York City. They first carried only four products: Cleansing Oil, Skin Lotion, Super Rich All purpose Creme, and Creme Pack. Two years later, in 1948 they established their first department store account with Saks Fifth Avenue in Manhattan.Over the next 15 years, they expanded the range and continued to sell their products in the United States. In 1960, the company started its first international account in the London department store Harrods. The following year it opened an office in Hong Kong.
In 1964, they introduced Aramis, a line of fragrance and grooming products for men named after an exotic Turkish root originally used as an aphrodisiac. In 1967, Estée Lauder herself was named one of ten Outstanding Women in Business in the United States by business and financial editors. This was followed by a Spirit of Achievement Award from Albert Einstein College of Medicine at Yeshiva University in 1968. In that year, the company expanded again, opening Clinique, a dermatologist-guided, allergy-tested, fragrance-free cosmetic brand.
Estée Lauder's Clinique brand became the first women's cosmetic company to introduce a second line for men when, in 1976, they began a separate line called "Skin Supplies for Men", which continues to be sold at Clinique counters worldwide. In 1981, the company's products became available in the Soviet Union.
In the 1990s, brand acquisitions and licensing agreements contributed to explosive growth as the company transformed from a family-owned business to a publicly traded, family-controlled organization. The decade opened with the creation of Origins — the first wellness brand in U.S. department stores. The first licensing agreement for fragrances was with fashion designer Tommy Hilfiger in 1993, followed by Kiton, an Italian fashion house, and with American fashion designer Donna Karan.
Brand acquisitions began with an investment in the Toronto-based M•A•C Cosmetics in 1994, which the company then acquired in 1998. Bobbi Brown Cosmetics, designed by the celebrated makeup artist, was acquired in 1995, as was La Mer – along with the original recipe for its supreme luxury product, Crème de la Mer, containing the nutrient-rich Miracle Broth™. The company ventured into its first hair care and holistic beauty brand with Aveda in 1997. The renowned fragrance house Jo Malone London was acquired in 1999.
On November 16, 1995, The Estée Lauder Companies went public on the New York Stock Exchange at $26.00 a share.
Acquisitions and licensing continued in the 2000s as The Estée Lauder Companies bought a majority interest in Bumble & bumble, the trendy hair care salon, and completed its acquisition in 2006; an exclusive global licensing agreement was signed with fashion designer Michael Kors. Designer Tom Ford begins a project with the company and later an agreement was signed with him to develop and distribute fragrances and cosmetics under the Tom Ford Beauty brand.
On July 1, 2010, the company acquired Smashbox Beauty Cosmetics, Inc., a brand created in Smashbox Studios in Culver City, California, by brothers Dean and Davis Factor.
On October 28, 2011, Aramis and Designer Fragrances, a division of The Estée Lauder Companies Inc., and Tory Burch LLC announced the signing of a multiyear agreement for the exclusive worldwide license of the Tory Burch fragrance business. This partnership marked Tory Burch's first step into the beauty industry. The first Tory Burch fragrance products were introduced in 2013.
In 2012, the company launched AERIN Beauty, a luxury lifestyle beauty and fragrance brand inspired by the signature style of its founder, Aerin Lauder.
In 2014, the company acquired two insider beauty brands, RODIN olio lusso, a skin care brand renowned for its "Luxury Face Oil," and Le Labo, a fragrance and sensory lifestyle brand. Later that year, the company also made its first investment in India by buying a minority stake in Forest Essentials, a luxury cosmetics company specializing in Ayurvedic products. In 2015, the company acquired Editions de Parfums Frédéric Malle, a fragrance brand, and GLAMGLOW, a Hollywood skin care brand.
In 2016, the company acquired Becca Cosmetics, their first color cosmetic group acquisition since Smashbox in 2010. In November 2016, the company made its largest acquisition to date by acquiring California-based cosmetics company Too Faced for US$1.45 billion.
Marketing
The Estée Lauder company has many brands and Estée Lauder is one of the brands. It has had sometimes high-profile spokesmodels, sometimes referred to simply as 'faces'. Past 'faces' for Estée Lauder include Karen Graham, Bruce Boxleitner, Shaun Casey, Willow Bay, Paulina Porizkova, Elizabeth Hurley, Carolyn Murphy, supermodel Liya Kebede was the first African American 'face' of Estee Lauder, Anja Rubik, and actress Gwyneth Paltrow. the main spokesmodel for Estée Lauder was supermodel Hilary Rhoda. In 2010, the company added three more faces to the roster, Chinese model Liu Wen, Puerto Rican model Joan Smalls, and French model Constance Jablonski.In 2015, Estée Lauder signed model Kendall Jenner to promote the brand.
In 2017, the company announced Violette Serrat as their Global Beauty Director.
Alvin Chereskin, the founder of AC&R, was the long-time creative partner of the company.
Operations and finances
Finances
For fiscal year 2016, the Estée Lauder Companies achieved net sales of $11.26 billion, a 4% increase compared with $10.78 billion in the prior year. Net earnings for the year were $1.11 billion, a 2% increase compared with $1.09 billion last year, and diluted net earnings per common share rose 5% to $2.96, compared with $2.82 reported in the prior year. As of 2018, Estée Lauder Companies ranked 258 on the Fortune 500 list of the largest United States corporations by revenue.Board of Directors
Current members of the board of directors of Estée Lauder Companies Inc. are: Charlene Barshefsky, Rose Marie Bravo, Lynn Forester de Rothschild, Fabrizio Freda, Paul J. Fribourg, Wei Sun Christianson, Mellody Hobson, Irvine Hockaday, Jane Lauder, Leonard A. Lauder, Ronald S. Lauder, William P. Lauder, Richard Parsons, Barry Sternlicht and Richard F. Zannino.Executive management
is chairman emeritus. William P. Lauder is executive chairman. Fabrizio Freda is president and chief executive officer.Breast Cancer Awareness Campaign (BCA)
In October 1992, the BCA campaign was launched by Evelyn Lauder who co-created the "Pink Ribbon" with SELF magazine as a symbol of breast health. Since then, millions of people globally have heard the message about the importance of breast health and early detection can save lives.The Estée Lauder Companies’ annual Breast Cancer Awareness campaign involves all of the 18 brands that make up the Estée Lauder Companies. They collectively represent The Breast Cancer Research Foundation’s first and largest corporate supporter. Estée's daughter-in-law created BCRF's signature pink ribbon.
Over $10 million were raised for the Breast Cancer Research Foundation between 1993 and summer 2003. Another $1 million were raised from their retail partners between July 2002 and summer 2003.
Brands
The Estée Lauder Companies brands include:Cosmetics
- AERIN
- BECCA
- Bobbi Brown
- Clinique
- :fr:Darphin|Darphin
- DECIEM by Brandon Truaxe
- Estée Lauder
- GLAMGLOW
- La Mer
- Lab Series
- MAC Cosmetics
- Origins
- Prescriptives
- Smashbox
- Too Faced
- Tom Ford Beauty
- Aramis
- By Kilian
- DKNY Fragrances
- Donna Karan Cosmetics
- Editions de Parfums Frédéric Malle
- Ermenegildo Zegna Perfumes
- Jo Malone London
- Kiton
- Lauder
- Le Labo
- Michael Kors Beauty
- RODIN olio lusso
- The Ordinary by Brandon Truaxe
- Tommy Hilfiger Toiletries
- Tom Ford Beauty
- Tory Burch Beauty
- Aveda
- Bumble and Bumble
Controversies