Estee Lauder 2011 Annual Report Download - page 28
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We recognize that across the world,
beauty ideals and physiological
skin needs differ.
We are also focused on building momentum in Brazil, which currently represents the third-largest beauty
market in the world. Consumers in Brazil have a strong appreciation for beauty and spend a significant part
of their income on beauty and personal care products, particularly makeup, fragrance and hair care. This
year, we began unlocking greater market opportunities by increasing the penetration of two of our biggest
brands, Clinique and M·A·C, which are leaders in Brazil’s nascent prestige beauty industry.
Many Brazilian consumers have developed an affinity for our brands during their travels abroad. We realize
that a big challenge for us is that when they return to their home market there is a lack of traditional
prestige distribution channels for them to purchase the products they fell in love with. To help raise brand
awareness and engage Brazilian consumers, we have opened new freestanding stores and are starting
e-commerce in this market. Additionally, we are creating locally relevant brand activities and product
launches. An excellent example of this was the global press launch of M·A·C’s new Semi Precious Colour
Collection. Inspired by the Brazilian landscape and the beauty and diversity of its culture, the collection fea-
tured the Brazilian-mined semiprecious stones of Bronzite, Black Tourmaline, Pyrite and Lepidolite to the
Mineralize product mix. Through exciting launch activities for editors and dynamic presentations
demonstrating the cultural significance of the stones, M·A·C drove media awareness for the new collection,
while creating a larger halo effect for the overall brand in Brazil. In addition to the launch, M·A·C opened
new freestanding stores in the country and experienced double-digit sales increases in fiscal 2011.
In addition to China, Russia and Brazil, we are continuing our efforts in a number of other key emerging
markets that exhibit the most significant potential for our business, namely the Middle East, Turkey, Eastern
Europe, South Africa and other areas in Latin America. Despite the year’s turmoil in the Middle East, our sales
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