Estee Lauder 2008 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2008 Estee Lauder annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

7
Kohl’s Department Stores, BeautyBank rolled out its top-selling Tri-Aktiline Instant Deep
Wrinkle Filler internationally, with a groundbreaking, multi-channel, multi-national campaign in
specialty cosmetics stores, direct response TV, the Internet and travel retail. The launch began
on the Champs Elysées in Paris and traveled to Taiwan, Korea, the United Kingdom, Germany,
Hawaii, Turkey, and fi nally Australia, with a new, highly profi table sales model.
MULTI-BRAND POWERHOUSE
The Estée Lauder Companies’ diverse portfolio of brands is an exceptional platform for
growth. The vast majority of our sales still come from brands that we created internally,
or that have expanded tremendously under our stewardship, a testament to our organic brand-
building strength.
Estée Lauder is the fastest-growing luxury brand in many Asian and European markets. M.A.C
continues to be the leading prestige makeup line in North America and its global net sales rose
by double-digits. Clinique had strong sales gains in Russia, China, Korea and the United Kingdom.
Many of our highly successful product launches are detailed throughout the following
pages. Looking ahead at our established brands, Estée Lauder’s new Sensuous fragrance went
on sale with a fabulous ad campaign and Clinique Medical, the line of advanced, physician-
dispensed skin care products created with Allergan, Inc., will be launched soon. We are
expanding the portfolio with new brands, creating BeautyBank’s Eyes by Design exclusively
for the home shopping medium, HSN, and last year we added the wildcrafted beauty of
Ojon hair and skin care. These and many other examples refl ect our talent for creating and
identifying products that speak to the desires of consumers worldwide.
SUPPORTING GROWTH, SUSTAINING SOCIETY
To support profi table growth across all of our businesses, we continue to make progress in our
Strategic Modernization Initiative (SMI). By uniting our global organization with common
systems, functions and practices, SMI will help maximize effi ciency, unlock shared innovation
and enable superior quality and customer service. We expect that the majority of this
transformation will be completed by the end of fi scal 2012.
It also is extremely important for us to be responsible global citizens. At a time of growing
concern for the environment, among beauty companies we are one of the leaders in the
installation and use of renewable energy. The equivalent of all electricity utilized
by our Global
Operations division is generated from green sources. Our packaging is mov ing towards a
Cradle to Cradle philosophy to reduce waste and energy use wherever
possible. Our ingredi-
ents are based on a sustainable sourcing policy wherever we do business. Our Ojon business,
where we are providing economic opportunity for indigenous peoples in Central America, is a
good example of our commitment to social responsibility. We also provided approximately
$31 million in fi nancial and in-kind support for organizations such as the M.A.C AIDS Fund,
the Breast Cancer Research Foundation and other philanthropic programs.