Estee Lauder 2005 Annual Report Download - page 8

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07
T
ravel has become the number one consumer luxury in the world. Hundreds of millions of travelers now swarm through
the world’s newly constructed airline terminals, as well as cruise ships, and resorts. The Estée Lauder Companies is brilliantly
positioned to sell our products to those travelers, no matter where they are. Our Travel Retail Division creates products strictly
for this channel, which provides a source of growth for us as well as a potent way for consumers to sample our products.
I am also seeing the growing importance of “showcase markets”,where both local consumers and visitors are flooding the
stores. Hong Kong expects 12 million visitors from Mainland China, and Macau will be close behind with 10 million visitors.
Dubai, where there are counters in all of the major stores as well as in the international airport, anticipates 21 million visitors
in 2006 from Europe, the Middle East and India. Even Las Vegas, which continues to grow dramatically, will receive an
estimated 41 million visitors from throughout the world. Our Company is using these showcase markets not only for sales
and profit generation, but as windows to a new and eager consumer base.
The strategies that William Lauder has outlined, coupled with the few trends that I have just mentioned, should provide
growth well into the next decade.
Sincerely,
Leonard A. Lauder
Chairman
THE MOST COMPELLING TREND I SEE IS
THE POWER OF OUR BRANDS IN ALL COUNTRIES,
FROM THE MOST MATURE AND WELL-DEVELOPED
TO THOSE THAT ARE JUST EMERGING.