EsteeLauder secret of success

    Estee Lauder to the successful experience that courage constantly looking for new markets, new competitors and new marketing channels. The beginning of the company founder, Lord family's accountants and lawyers are opposed to involvement in cosmetics. And the free delivery of 1-3 months to sell samples of approach has been widely ridiculed by other companies in the industry. But the company firmly believes its products have good quality, not only must win the favor of female consumers, but also transformed them into repeat customers in droves.

    In opening up the market, the Second World War, Europe is still a devastated, the company first opened his business to Britain. Development momentum in Asia, has just appeared when the company has appropriate time to expand to Hong Kong. And then came to be the first to enter the former Soviet Union, the U.S. cosmetics company. Now in China, Vietnam, the sale of all income not come cheap. After 1996 years, the company's international sales revenues increase 10%, by 2001 close to 40% of total sales.

    In channel management, the company in different countries adopt different strategies in the United States to rely on department stores in France, both department stores and perfume shops in Germany, is entirely on perfumes. However, in advertising and marketing campaign management, the company insists the image of a unified global market. In addition to women, specifically for young people launched Jenny Series Wal-Mart, target stores, supermarkets placed beyond all only for the high-end market supply. Despite worldwide 13500 monopoly facilities, the company's credo has always been the leader in the supply to the growth in demand will always grow and stick to a limited supply to maintain a "customer-hungry."

    In product development, the company has followed in recent years, completely "self-competition" way, such as the 1964 launch of Aramis men's cosmetics series; 1968 Estee Lauder launched the original product with the most competitive Clinique (Clinique ), almost ruin the company's suicidal behavior; 1979 launch of Prescriptives series; in 1990 launched the Origins series contains natural ingredients. The company now has 16 family of brands, only five come through mergers and acquisitions and other entirely original. Even if it made five acquisitions the brand, but also let go by the original creator is still in charge of operations. Continuously, "Li," and constantly "broken", that is continually creating the brand, while continually to update the brand to challenge their own original brands - such as production and management so that the whole company to maintain vitality. In fact, in 2001, the company's turnover of around 30% of all the products introduced last 3 years brought.

    The integration of products and channels is always difficult. In 2001 alone, a year, the company to 22 million U.S. dollars on the closure of 86 underperforming stores as well as the adjustment of Tommy Hilfiger Jenny series of in-store display design, and another to spend 41 million U.S. dollars to re-brand management and supply chain systems. But Leonard is still not assured of the channel's future, especially worried about the competition between department stores and price the credibility of store image will be lost. He said: "to (the original high-end) Macy's store to buy things, and now sometimes even more than the price (s seriously commoditised) Target stores cheaper."

    Although the company was finally listed in 2000, but Estee Lauder has always been a family business and has family still controls more than 90% Lord of the shares, so Leonardo can also manage the smooth transfer of the company's daily business to their own son, William.
 

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