Estee Lauder 2008 Annual Report Download - page 23

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21
DEPARTMENT STORES
Premier department stores, including Bloomingdale’s, Dillard’s, Galeries Lafayette, Holt
Renfrew, Harrods, Isetan, Lotte, Macy’s, Neiman Marcus, Nordstrom and Saks Fifth Avenue
continue to be vital to our business, accounting for more than 50 percent of our global net
sales in fi scal 2008. In North America, we are working with our department store customers to
create an exciting shopping experience for the brands we sell at their counters.
Globally, international department stores are rising in importance, as affl uent consumers
breathe new life into the great urban shopping districts. We are increasing the presence of our
brands in these stores.
TRAVEL RETAIL
Our travel retail business has been on a dramatic upswing, as we keep pace with today’s
global business and leisure travelers. The cosmetics and fragrance categories account for an
impressive $10 billion, or almost one-third of all travel retail sales. As more airlines introduce
onboard wireless Internet access, we expect to see even more demand for our products
among “globally mobile” travelers.
All of our brands combined hold the number two position in the global travel retail channel,
and we are aggressively increasing our airport presence around the world. In total, our brands
invested in promotions in major travel locations last year, including Heathrow’s new state-of-
the-art Terminal 5, Seoul Incheon, as well as Hong Kong, Shanghai, Frankfurt, Milan, New York,
Los Angeles, Brisbane, Paris, Oslo, Copenhagen, Tel Aviv and Buenos Aires.
New products created specifi cally for the travel retail channel contributed to our growth.
Responding to the unique needs of jet setters, Estée Lauder introduced Super Flight Creme,
a set of exclusive continuous hydration products that relieve the visible signs of stress on the
face and eye areas due to air travel. An Estée Lauder travel exclusive fragrance, Bali Dream,
entices traveling shoppers with exotic tropical scents.
TODAY the total
travel retail industry is
worth $34 BILLION.
Clinique skin typing at London’s
Heathrow Airport.