Estee Lauder 2010 Annual Report Download - page 50

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We are determined to continue winning in China by investing resources in our strongest channels there—
namely, department stores and specialty stores, such as Sephora. In Spring 2010, we opened the first
Origins counter in mainland China, in Parksons department store. Origins is our ninth brand in China and
initial results have exceeded expectations.
In Russia, we focused on our iconic brand franchises, such as Estée Lauder’s Advanced Night Repair, Clinique’s
3-Step Skin Care System and DKNY’s Be Delicious fragrance. Through the use of targeted advertising and
new media marketing, we built greater brand awareness across this growing market. Through the support
of integrated television, digital and outdoor ad campaigns, these franchises have experienced great success
there, creating powerful “halo effects” for each of their brands.
In addition to focusing on winning in China and Russia, we are assessing opportunities in other emerging
markets—such as Brazil and India— as well as more developed markets, identifying and capitalizing on both
traditional and new channels of distribution. Because every market is unique, we tailor our distribution to
meet the needs of our consumers through personalized experiences in channels which offer the best
prestige opportunity. For example, while we focus on building excitement and driving traffic in North
American department stores, we will continue to develop opportunities in perfumeries in Europe, travel
retail around the world and freestanding stores in Latin America. In the United States, we are responding to
the prestige consumer’s desires and increasing our presence in alternative channels that we think hold
long-term promise, including specialty beauty chains, online, direct response TV, salons and spas.
49
For fiscal 2010, Ojon’s QVC retail sales
in the U.S. totaled over $35 million.
TOP LEFT: Ojon Restorative Hair Treatment.
TOP RIGHT: Denis Simioni, Founder of Ojon.
BOTTOM LEFT: Clinique freestanding store in São Paulo, Brazil.
BOTTOM RIGHT: Origins launch event in China.