Billions of dollars in profit world-wide fame, dozens of brands, members of the Corporation, the ideas used by the global beauty industry – a family business that began with the ambition of an American girl. Explorer vc.ru studied the biography of the most famous self-made women in the world Estee Lauder and her company. In the 20-ies of XX century in the United States in the backyard in the barn Hungarian chemist John Schotz has developed a cream for the face and called him Super-Rich All Purpose Crema (“cream for any occasion”). The cream had a pleasant texture and smell, and most importantly, effective.
Of particular interest to the experiment showed the niece SOCA, which, using its inherent since childhood, business acumen, began to spread the new among friends and classmates. The girl was named Josephine Esther Menzer, a few years later she married Joseph Lauter, changed the name and replaced one letter in the surname, to become the legendary Estee Lauder. Instead of school young este worked in the shop of his father, and all the free time spent with his uncle, who taught her to care for the skin and mix the ingredients for the cream. The girl dreamed of being famous, and wanted to be an actress, but the idea is to have “the power to create beauty” is so possessed her, that she decided to try herself in the field of cosmetics.
Once the owner of a beauty salon on West 72 Street, where the este did her hair complimented the beautiful girls face, in response to Lauder with pleasure told about the cream. A month later came back and made a presentation of funds to the clients of the salon, and also gave samples of the cream. The product is so liked that the hostess offered este to lead the direction of beauty at her salon. Few weeks cream have been sold in many salons in new York.
Thanks Estee Lauder all cosmetics brands have started to use the probes to demonstrate the product and give miniature replicas of products. This is one of the ideas that allowed Lauder to build a beauty Empire. In 1933 este founded the firm Lauter Chemists, then another “t”. His female clients she has seen successful business women who do not have time for long beauty treatments.
About your product, Lauder was ready to tell the whole world, but first she went to the most expensive resort in Miami, where he opened an office in the hotel and started. In the ten years since the founding of the company Estee Lauder had a son, divorce her husband, to meet him again and marry him, give birth to a second son, to work as a actress in the theatre and finally come to the idea to seriously pursue the cosmetic business together with her husband. First, spouses of Lauder purchased the restaurant on Manhattan who had been. Hall they turned into the shop, and the kitchen – laboratories of cosmetics, where at night the couple was mixed and Packed cream that the following day sold out.
In 1946 they founded Estée Lauder Cosmetics Inc. In the same year, the turnover of womens cosmetics in the U.S. totaled $7 million. For starters, Lauder was required to develop packaging for its line means. Having been in dozens of bathrooms in homes of friends and acquaintances, inspected hotels, a businesswoman came to the conclusion that for any interior and luxuriously color scheme will look distinctive turquoise tones. So appeared the famous shade of Estee Lauder packaging.
Her cosmetic line initially consisted of only four items, and the hostess did not hesitate to travel around the beauty and tell clients about their products. Later, Lauder has extended its range of decorative cosmetics, by entering the red lipstick, turquoise shade and for the first time, offering buyers powder Nude (before this, the producers produced it only in white and pink versions). The next step was finding a place for sale of cosmetics. Estee Lauder wanted to have her products associated with luxury, while the price was affordable for the middle class.
Her choice was to the newly opened shopping center Saks Fifth Avenue. After much persuasion the owner of the store made the first order at $800. Enterprising Lauder a few days followed by store visitors to find out, where they look at the entrance to the store. Was left, where she chose a place for the display of cosmetics.
Advertising have no money, so she sent a Saks card, which first sounded another business idea Lauders popular, still — “gift with purchase”. Este promised free dust to all who purchase the product. She also presented its line. A couple of days the visitors of the store bought the entire product Estee Lauder.
Special attention of buyers attracted metal packaging of the lipstick, whereas after the Second World war, all the lipstick was produced in plastic pouch. Few weeks products of Estee Lauder has appeared in all major stores in new York. In the early 50-ies of its representative offices opened in other U.S. cities. Opening a franchise Lauder followed four business rules:
In his pocket, the proceeds were $50 thousand, Estee Lauder appealed to the advertising Agency with the request to make the little free samples of its products and postcards with the inscription. “Madam, you are our favorite customer, please come to the showcase Estee Lauder and redeem this postcard for a free gift”. This is another business idea Lauder, which many cosmetic brands still use today. While competitors dont understand this wasteful policy, Lauder doing free makeup clients and they brought friends. It worked better than any advertisement.
Following their predecessors, the founders of the cosmetic lines Helena Rubinstein and Elizabeth Arden, Estee Lauder has started to develop its own perfume. Businesswoman has created a scented bath oil. New Youth-Dew came out in 1953 and was worth $8.5 per bottle. Lauder has positioned oil as a product that a woman can afford to buy my own, begging my husband to use it, without waiting for a special occasion.
For product promotion in the media businesswoman used a provocative image of a naked women, which drew even more attention to the new product. For the first week sales of five million bottles. Oil became a bestseller. In the 1980s it brought the hostess a $30 million a year.
Part of the business strategy of the company was the novelty and exclusivity. In 1956, estée Lauder decided to release a luxury face cream for $115 (in terms of today it would cost $1000). The company cautiously started advertising goods. Estee Lauder could not promise to get rid of wrinkles and smoothing skin, knowing that if this happens, it can sue unhappy clients.
Then she released is titled “What can cream for $115?”. In advertising listed the ingredients that were first connected in a jar. In addition, the marketers appealed to the reputation of Estee Lauder who knows everything about beauty and not bad advice. Itself Lauder said.
“Why are you willing to pay so much for the Picassos. Because the paper only costs $2,75, and the jar of paint of $1.75. Why you pay a lot of money for a small painting. You pay for the idea..for the experience..and for something that suits you”. Two years after the presentation of the novelties of the annual sales of the cosmetic lines Estee Lauder $1 million.
For ten years they annually grew by 45% and turned the company into the Empire, making it Estee Lauders richest self-made woman in the world. Having conquered the USA, Lauder went to Europe. In 1960, Londons Harrods was the first Department store, put it up the line. Next was the Galeries Lafayette in Paris, where advertising oil Estee Lauder “accidentally” broke a bottle in the center of the store. Its fragrance instantly attracted the attention of the buyers, who the same day issued a purchase.
In addition, the makeup appeared in Hong Kong, Canada, Australia. The companys sales grew to $14 million. In 1981 products Estee Lauder has become possible to buy in Moscow. In the late 1960s, its time to choose the face of the company, Estee Lauder, opted for the model Karen Graham. She has represented cosmetic line from 1970 to 1985.
Thanks to her, millions of women around the world learned about the existence of Estee Lauder. Later, at various times, the faces of the brand became the model Polina Porizkova, actress Elizabeth Hurley, Gwyneth Paltrows and many others. Estee Lauder adhered to the following criteria. Women should be elegant, strong and smart.
Not forgotten Estee Lauder and men. In 1964 with the aim to expand the audience she launched a line for men, Aramis, consisting of three items. Sales were not impressive, so three years later the brand was re-launched with an extended range. The next stage of development of the Corporation was a new line of cosmetics for Clinique, which was developed by dermatologist Norman Orentreich and editor of Vogue Carol Phillips.
At the head of a new direction in 1968, stood the eldest son of Estee Lauder Leonard. In the first seven years the new brand has lost $3 million, which was not so much for the Estee Lauder company with a turnover of $40 million a year. Soon the Clinique brand launched a one-hour client consultation for the selection of the right cosmetics and makeup. This know-how cost Estee Lauder $40 million.
However, all the cost was soon compensated. In 1978, annual sales of Estee Lauder was $170 million, another $80 million brought the Clinique brand, $40 million – Aramis. Despite the fact that the mens cosmetics brought in less income, its sales grew at a pace of 18% per year. In 1983, the company Estee Lauder has earned its first billion dollars. Estee Lauder wanted to help women to not only be beautiful but also healthy.
Charity has always occupied one of the priority directions in the company. In 1992, the daughter-in-law Estee Lauder — Evelyn founded the Foundation for early detection of breast cancer (BCA). For the first time millions of women talking about the fact that early diagnosis can save lives. A symbol of struggle against breast cancer Fund has taken a pink ribbon, which was distributed in all stores Estee Lauder. By 2003, the amount of donations was $10 million.
Another million dollars was added retail partners Estee Lauder. At the moment, the Fund has raised about $65 million. Ambassadors of the Foundation are Estee Lauders grandson William, the President of Estee Lauder Fabrizio Freda and actress Elizabeth Hurley. Even after almost fifty years after the founding of the company Estee Lauder and didnt think to stop the business needed a new direction. Another idea was to release cosmetics under the already established brands.
In 1993, the company signed an agreement with Tommy Hilfiger, and a few years este Lauder has signed an agreement with Donna Karen on the use of the trademark DKNY. But it was not the only stage of development Estee Lauder in the 1990s. Professional makeup has become another area of interest businesswoman. In 1995, Estee Lauder acquired a controlling stake in one of the main brands of makeup — Make-up Art Cosmetics (MAC), three years with full control over the company.
Another acquisition was a line of professional cosmetics Bobbi Brown. At the same time, the presentation of branded fragrance Estee Lauder — Pleasures that Elizabeth Hurley as the face of brand helped make a hit. Estee Lauder was already 87 years old when she finally decided to retire.
By the time she was voted the most influential businesswoman of the United States, the Association of perfumers called it one of the best and successful perfumers century by awarding the first ever title of living legend. She had many awards, including the Legion of honor, as Lauder was estimated at $5 billion. The last thing done by Estee Lauder in his career — led the company to IPO and raised $450 million of investment money. In 1996, the sales of which has grown every year since inception, have reached $3 billion, $300 million of which was spent on the purchase of another brand — Aveda.
Sales approached $3.5 billion, when the company invested in advertising and promotion of its brands over $1 billion, which accounted for about 28% of the income. This has helped the Corporation to take first place in the beauty industry of the United States with at least 50% market share of prestige cosmetics, 55% share of the market of makeup and skin care, and 30% perfume. In 2001, sales totaled $4.6 billion. In 2004, Estee Lauder died.
Built her beauty Empire 58th consecutive year of increased sales and reached $5.8 billion. Brands Estee Lauder, Clinique, Aramis, Donna Karan fragrances and Tommy Hilfiger are sold in more than 120 countries. Today the Corporation includes 29 Estee Lauder brands, which are sold in more than 150 countries. Sales in 2016 reached $billion of 11.26.
It is still a family business at the helm of the sons and grandsons of este Lauder. In Russia, as elsewhere in the world, women appreciate products the Estée Lauder brand for unmatched quality and efficiency. At the same time in our stores, we see a very young clients and adults. Our main customer is an educated and accomplished woman from 25 to 44 years old, interested in beauty, fashion, art.
High income enables her to make purchases on a monthly basis, she values a personalized approach and high service quality in sales points and online. Intrigued by some new product, it is ready to revise its budget in favor of buying this tool. In General, the audience of the brand in Russia is loyal, and with the development of our own digital platforms, we are seeing a significant influx of younger audience — Millennials. They are interested primarily makeup, unusual formats in care, including Korean trends. They are guided by opinion leaders in social networks, and work with these opinion leaders for us at the moment, one of the main focuses in communication.
We solicit the cooperation of trendsetters at the global level, Victoria Beckham and Kendall Jenner, and local. For example, our work with independent Russian artists increased demand for the line of tonal Double Wear.