Estee Lauder 2015 Annual Report Download - page 15

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12
In fiscal 2015, the talented teams at our heritage Estée Lauder and Clinique brands continued to work
hard to reignite growth, beginning new, exciting programs to achieve this objective over the next
year. Both brands delivered breakthrough launches that filled “white space” opportunities for us. For
example, in summer 2015, the Estée Lauder brand introduced New Dimension, a revolutionary
franchise of transformative skin care and makeup products that create visible definition for a
beautiful, more contoured looking face.
Estée Lauder is continuing its efforts to modernize its image by reaching out to a wider demographic,
including the Millennial generation. Initiatives include collaborating with Millennial influencers
around the world, producing branded content across their social media platforms and introducing
Kendall Jenner as a new spokesmodel. Kendall is the number one model across social media, and
she is helping us to introduce Estée Lauder to a whole new generation of consumers.
Clinique is also attracting new consumers through fun and fresh product offerings in makeup.
Clinique introduced Beyond Perfecting Foundation and Concealer, a new product with an innovative
applicator in the strong subcategory of foundation, where the brand leads in the United States. Also
in the makeup category, Clinique introduced Clinique Pop Lip Colour and Primer, a fun and colorful
draw for consumers, just as the popularity of lip products exploded.
GLOBAL GROWTH:
CONTINUED SUCCESS IN EMERGING MARKETS
We see significant, continuing opportunity in emerging markets, which are expected to comprise
approximately 25 percent of the industry’s global retail sales within the next decade. Geographic
diversity and balance is an important part of our strategy to minimize volatility and enhance the
consistency of our performance. We are engaging local consumers by emphasizing products and
services with the greatest local appeal. Our insightful marketing encourages brand loyalty among a
new generation of aspirational consumers across these countries.
Emerging markets contributed significantly to our performance, with sales in fiscal 2015 representing
approximately 14 percent of our total business.
We continue to view China as a significant long-term growth opportunity and an important building
block of our strategy. We are investing significant resources to reach Chinese women who, on
average, use seven products in the morning and another seven at night in their beauty routines—
many more than most consumers in the Western world. We are focused on becoming an even more
important part of the beauty rituals of an increasing number of Chinese consumers by launching
more brands in China and expanding distribution, with the potential of growing our presence from
100 cities currently to more than 300 over time.
Our growth in emerging markets is balanced across geographies. Sales in emerging markets,
excluding China, rose 26 percent in constant currency, led by Turkey, Brazil and South Africa.
Combined, our presence across these and other emerging markets represents an even larger portion
of our business than China itself. These countries represent wellsprings of opportunity as economic
improvements increase the purchasing power of a rising middle class.
THE EST{E LAUDER COMPANIES INC.