Estee Lauder 2008 Annual Report Download - page 18

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16
consumers are enchanted by the alluring scent of fragrance and exhilarated by the latest
innovations in makeup, we showcase our classic fragrances and dynamic makeup brands.
In India, Estée Lauder and M.A.C have created specifi c foundation shades and cheek color
carefully designed to bring out the natural beauty in Indian skin tones.
Our multi-national strategy was a primary driver of our fi scal 2008 fi nancial results, as 59 percent
of our sales came from outside the United States. Going forward, we expect international
markets will continue to drive signifi cant growth as we focus on anticipating and delivering the
unique product needs of consumers in these countries.
EMERGING MARKETS
Emerging markets represented nine percent of our total sales in fi scal 2008. Some of our most
promising growth opportunities are in the emerging markets of the “BRIC” countries: Brazil,
Russia, India and China. Consumer spending in these markets is climbing dramatically as these
economies continue to expand. The high-net worth segment specifi cally is growing rapidly
in these regions — increasing nearly eight percent in China and over 20 percent in India since
2006 — a particularly promising trend for our luxury products.
As these upwardly mobile consumers actively seek world-class beauty products and custom-
ized service, our brands are there to deliver. We are focused on growing our presence in China
where amongst our brands, Estée Lauder was the fastest growing brand. In 2002, we had two
brands at 20 counters in six cities in China. Today, we have eight brands in as many as 84
department stores and 40 Sephora stores in 33 cities throughout this growing region.
Russian women boast one of the highest spends on beauty products in the world as a
percentage of income. We opened an Estée Lauder store in Moscow across from Red Square
in 1981, making us the fi rst Western fragrance brand in what was still the Soviet Union.
THE TOTAL INDIAN
BEAUTY MARKET IS
GROWING AT
25 PERCENT A YEAR.
Estée Lauder launched in India in Spring 2008.