Estee Lauder 2014 Annual Report Download - page 33

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31
Our vast global footprint provides us many levers of growth, enabling us to quickly shift our focus to
opportunities that may appear around the globe. We are the number one prestige beauty company in
many of the largest consumer markets, such as the United States and the United Kingdom; in fast-growing
emerging markets, such as China and Turkey; and in smaller, but high-potential emerging markets, such
as Mexico and the Middle East. We also continue to gain share in certain Western European countries
and are continuing to attract consumers in big markets like France, Italy and Spain.
We have several growth stories in Korea this year, although Korea continues to be a challenging
market for Western brands. Darphin, for example, has had great success in Korean department stores,
showing strong double-digit growth for the year, due in part to the popularity of its Essential Oils
Elixirs. Bobbi Brown‘s beauty lessons tailored to Korean consumers — featuring products that make skin
look flawless, balanced by pops of color on the lips and cheeks — have garnered praise. Meanwhile,
Aveda is currently the fastest-growing prestige beauty brand among the top 20 in Korea, driven largely
by strong sales of its Invati products and the re-launch of its highly successful Dry Remedy hair care
line. Additionally, LAB SERIES Skincare for Men, which experienced strong growth in Asia, is doing
extremely well in this market.
China remains a priority for us, and our focus on Chinese consumers is laser-sharp. We had double-
digit sales growth for the year, and maintained a leading share in our distribution, a trend we expect
to continue over the long-term as China’s GDP continues to increase, albeit at a slower pace. We
plan to continue capturing opportunities by expanding distribution in mainland China, Hong Kong
and Singapore; bringing new brands to market, such as Jo Malone London and Tom Ford Beauty; and
entering additional smaller cities.
While there is vast potential in China, the sum of the other emerging markets around the world represents
an even greater opportunity. Our cumulative sales in emerging markets like Mexico, South Africa, Turkey,
Brazil and the Middle East surpass our total annual sales in China, and are growing rapidly. We rely on our
extensive global footprint to give our brands access to untapped markets, and our outstanding creativity,
insights and innovation to appeal to local preferences. For example, understanding that consumers
in India are focused on lip color, Bobbi Brown added a lip bar in stores that emphasizes the brand’s
OUR MANY
LEVERS
OF GROWTH
This award-winning Michael Kors Collection campaign was shot by legendary photographer Mario Testino.