Estee Lauder 2011 Annual Report Download - page 25

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Establishing market-oriented research and
development at the heart of where
our most demanding consumers live
is a key piece of our strategy.
23
LEFT: Origins Plantscription Anti-Aging serum with the powerful plant ingredient, Anogeissus
In Europe, we improved our High-Touch services in independent pharmacies, which represent the primary
distribution channel for brands like Darphin. As a result of more innovative merchandising, navigation
systems and increased signage that highlight the brand’s best sellers, Darphin is succeeding in increasing
brand loyalty. We are adapting similar strategies elsewhere in our portfolio.
EXPANDING IN EMERGING MARKETS
We are quickly becoming a significant player in the emerging markets that represent an exciting part of the
future growth of prestige beauty. We experienced outstanding growth in these areas in fiscal 2011, most
notably in China, Russia and Brazil. With emerging markets expected to grow to almost 30 percent of the
global beauty business over the next three years, we are confident that our momentum will continue to
accelerate. Though each market has its own unique challenges, we view these challenges as opportunities
to build our brands and win with new consumers. Today, we are proud that our progress in each of these
countries has exceeded our expectations.
China is one of the fastest-growing beauty markets in the world, where today 11 of our brands are sold
in 38 cities through department stores, freestanding stores and multi-brand retailers. It is also the
home country of countless travelers and those of Chinese descent who live in other countries around
the world. Chinese consumers are particularly sophisticated when it comes to skin care and, as their