Estee Lauder 2004 Annual Report Download - page 11

New products are the end result of continuous and comprehensive research into ingredients. For example, we are
probing the benefits of essential oils, looking beyond their effects on the sense of well-being and mood. Smelling
the roses to feel more relaxed may actually have a scientific basis. As our colleagues at Origins, Aveda and
Darphin know well, the fragrance of flowers has been a part of relaxation and romance for centuries.
NEW MARKETS FOR OUR BRANDS
Our brands opened in many more markets around the world. They are sold in over 130 countries and territories
worldwide and we continue to bring our newer brands to the international markets. For example, Aveda is now
open for business in Japan, and M.A.C continues to successfully open free-standing stores in Brazil.
Currently, five of our brands — Estée Lauder, Clinique, Aramis, Donna Karan fragrances and Tommy Hilfiger
fragrances — are sold in more than 120 countries and territories, with one — Clinique — sold in more than
130. Still, if we were to introduce all of our brands in every one of these countries and territories, we would
have over 1,300 potential market openings in our future! This provides us with untapped opportunity for
international expansion.
Each time an Estée Lauder Companies brand opens in a new market we are one step closer to becoming a more
truly global Company. I am delighted to report that this year we neared a critical tipping point as our international
sales moved closer to 50% of total sales.
With countries such as Russia, China and India creating vast new middle-class communities, our prospects
abound. Through experience, we know that as women begin to have more disposable income they reach for
the easily attainable, small luxuries of beauty and personal care products. Both Estée Lauder and Clinique are
growing rapidly in the dynamic Chinese market. One clear sign of the emerging Chinese beauty industry is the
development of high-quality women’s fashion magazines. We hosted several of the top Chinese editors at our
headquarters in New York this spring to build relationships with these trendsetters.
NEW VENUES FOR CONSUMERS
First and foremost we must maintain our focus on the rapidly evolving consumer. As the consumer changes, we
must change with her and sometimes lead the way to some very exciting new destinations. State-of-the-art
facilities such as the new Bumble and bumble flagship salon and university in Manhattan’s newly fashionable
Meatpacking District thrill our consumers. The Cooper-Hewitt, National Design Museum, awarded Aveda the
Corporate Achievement Award for exhibiting ingenuity and insight in the relationship between design and
quality of life in its salons.
We never forget the consumer on the move. Our travel retail division continues to flourish as the travel business
has rebounded nicely this year. We also strive to make the in-store experience as engaging and entertaining as
possible. At Jo Malone’s Sloane Street store in London, for example, we offered hand and arm treatments with
edibles to launch Jo Malone’s new coffee fragrance collections. Whether in apothecaries or airports, specialty
stores or online, we seek to touch our consumer in a meaningful way that not only sells products, but builds
brand enthusiasm. Each of these channels allows our consumers to shop where, when and how they choose.
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THE COMPANY IS FOCUSED ON
INCREASING THE NUMBER OF OWNABLE
TECHNOLOGIES IN OUR PRODUCTS.