Estee Lauder 2002 Annual Report Download - page 7

• We have diversified geographically: We are quite excited about the potential in emerging markets, particularly
Eastern Europe, Russia and China, and markets where makeup has taken on a symbolic value of freedom and
self-expression. While our more developed brands are already available in over 130 countries and territories,we
have many opportunities to expand further. Aveda, for example, generates around 85% of its sales domestically;
the world awaits. We are able to leverage our distribution network and international expertise to expand the
reach of each brand — and will do so carefully, deliberately, appropriately, when the time is right.
These growth platforms are part of a continuing process. We continue to diversify, fine-tune, balance, anticipate
and innovate. Today’s answer is only good until the question changes,which happens rapidly — in many languages,
in many time zones, in many currencies, in many economic climates, for many skin types. What endures is the
quality of our product, the quality of our trade and consumer relationships, and the quality of our corporation.
And foremost, it is the quality of our people, at all levels. They are the ones who are diversifying, fine-tuning,
balancing, anticipating, innovating and realizing the portfolio of ideas that keeps us competitive.
If the greatest wealth of a company is in its people, we are a very wealthy company. Let me pay tribute to some
of the people who are responsible for our success.
OUR BRANDS ARE CONCEIVED FOR DIVERSE GROUPS OF
CONSUMERS, WHETHER THEY SEEK HIGH GLAMOUR, NATURAL
ENHANCEMENT, ROMANTIC ILLUSION, LUXURIOUS
PAMPERING, HEALTHY PROTECTION,
OUTRAGEOUS FUN OR PURE MAINTENANCE.
At a time when the quality and integrity of a board of directors is more important than ever, we have assembled
a most remarkable group of outside directors to protect your interests, share expertise and add perspective:
• Ambassador Charlene Barshefsky, Washington-based attorney and former U.S. Trade Representative, has been
a formidable negotiator and policy maker on the international economic scene. She brings us considerable
first-hand knowledge of foreign trade and regulatory issues and a special insight into Far Eastern markets.
• Lady Lynn Forester de Rothschild’s concentration as an executive has been in finance and telecommunications,
with a transatlantic emphasis. As an entrepreneur herself, she represents the mindset we seek in many of our
most propitious acquisitions.
• Irvine O. Hockaday, Jr., retired in December 2001 as President and Chief Executive Officer of Hallmark Cards, Inc.,
a great family-rooted business that shares many of our beliefs in the nurturing of employees, community and
culture. Irv also brings wisdom from his experience on the boards of several major public companies.
• Richard D. Parsons, the brilliant new Chief Executive Officer of AOL Time Warner and a leading citizen of
New York City, provides an unparalleled global understanding and vision of the media, communications,
entertainment and marketing worlds that both stimulate our business and promote our products.
• Marshall Rose, also a leading citizen of New York City, heads a privately held real estate development company.
Marshall’s real estate expertise is increasingly useful to us now that we have more than 375 freestanding
single-brand stores around the world. We also gain valuable insights from his pivotal leadership in private/
public partnerships that support culture and the humanities.
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