Estee Lauder

Essay by vickyshuangUniversity, Bachelor'sB+, November 2014

download word file, 45 pages 0.0

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This case study is about the cosmetics industry. The Estee Lauder Companies Inc. (Estee Lauder or

"the company") is a globally recognized manufacturer and marketer of makeup, skin care, fragrances

and hair care products. The company operates in the Americas, Europe, the Middle East and Africa,

and Asia Pacific. It is headquartered in New York City, New York and employed about 32,300

people as of June 30, 2011. The company recorded revenues of $8,810 million in the financial year

ended June 2011 (FY2011), an increase of 13% over FY2010. The operating profit of Estee Lauder

was $1,089.4 million in FY2011, an increase of 37.9% over FY2010. The net profit was $700.8

million in FY2011, an increase of 46.5% over FY2010.

In the early years of Estee Lauders‟ entrepreneurship, she faces a rejection from Madison Avenue to

accept and carry her product. But that does not stop her from continuingselling her products directly

to customers where she targets high:class customers exclusively through boutiques and department

stores and one of the first department store to sell her products was with Saks Fifth Avenue in New

York. Until today, Estee Lauder Companies has 26 brands, selling over to 150 countries andemploys

over 22,000 people worldwide. By the year 2004, Estee Lauder Companies lost a very important

person and that is Mrs. Estee Lauder herself due to cardiac arrest. Although it was agreat loss for the

company, Mrs. Estee Lauder witnessed her empire grow from a smallhometown operation into a

worldwide corporation. She was proud that her company went public in 1995 and now, it is led by

her children and grandchildren.

As of 2010 Estee Lauder sells its products in department stores across theworld and has a chain of

freestanding retail outlets. On July 1,