Estee Lauder 2012 Annual Report Download - page 44

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RIGHT: Dr. Andrew Weil for Origins™
Mega-Bright Skin tone correcting serum
In addition to Company-operated stores, we are
working hard to maximize other distribution
opportunities within each market. Driven partly by
expanding distribution, La Mer has become the
fastest-growing prestige skin care brand in Europe.
In Japan, Clinique, Estée Lauder and Bobbi Brown
all launched successfully this year in Isetan’s Mirror,
a specialty multi-brand beauty concept store. Since
our founding, selective distribution has been
a hallmark of our strategy. We are confident in
our ability to sustain our growth and generate
incremental sales by maintaining that focus on
selective distribution as we expand in key markets
around the world.
EXPANDING IN EMERGING MARKETS
Rapidly expanding economies continue to
represent an enormous growth opportunity for us.
Emerging markets, where the burgeoning middle
class is increasingly seeking luxury products, are
expected to account for 17 percent of the world
beauty market by 2022. As the global leader in
prestige beauty, we are well positioned to meet the
needs and define the aspirations of these newly
affluent consumers.
We continue to see great potential in China, which
is one of the fastest-growing beauty markets in the
world. Despite some economic slowing, we expect
China to continue to experience double-digit
growth in prestige beauty. Many Chinese consumers
covet Western luxury brands, and a youthful,
beauty-driven consumer demographic is fueling
demand for skin care products. Headlining strong
performance in Chinese markets, Estée Lauder,
La Mer and Origins experienced outstanding gains,
driven by their skin care innovations and renowned
High-Touch services. Nearly a third of La Mer’s
business is coming from Chinese consumers around
the world, a sign that we are successfully tapping
42