Estée Lauder stresses the importance of skin care sales in Asia-Pacific


- Last updated on GMT

Related tags: Estée lauder, Asia-pacific, Skin, Estée lauder companies

China is posting the fastest growth
China is posting the fastest growth
With more than a fifth of total sales generated in Asia-Pacific, it is no wonder Estée Lauder has turned its focus to the region, and according to the make-up maker, skin care holds the key for market growth.

Asia-Pacific has been growing at double digit rates for Estée Lauder in the last six years, and skin care goes down particularly well in this region.

Speaking on a webcast at the CLSA 2012 Hong Kong Forum, company president and CEO Fabrizio Freda said “Asia-Pacific is one of our fastest growing regions.”

“Skin care is our largest and most profitable category overall – accounting for 43 percent of our sales. In Asia-Pacific it is even more important – accounting for more than 60 percent of sales in this region,”​ he continued.

Skin care driving sales

In fiscal 2012, sales for Estée Lauder in Asia-Pacific exceeded $2 billion for the first time ever; driven by a strong performance in the skin care segment which led the growth with sales up 16 percent, and accounts for the largest market share.

The New York-headquartered group benefits from successful brands introduced in skin care, in Asia-Pacific.

Premium skin care brand La Mer is popular amongst Asian consumers and the brand had its biggest ever launch for its latest moisturizing product in Asia this year, due to its popularity.

The Estée Lauder brand of skin care and anti-aging products is also the number one in Prestige Beauty in the region, with Origins and Clinique also generating a strong following.

China showing rapid growth

Within the Asia-Pacific region, Estée Lauder has also targeted growth markets such as China. The company has expanded its distribution in the country on the back of its success.

In 2012, China became Estée Lauder’s largest affiliate in Asia – beating Japan – achieving sales growth of 28 percent in local currency.

“Asia-Pacific continues to be an exciting region for continued prestige beauty growth, particularly China, Taiwan and Hong Kong,”​ added Freda.

“With upcoming launches planned,​ [Estée Lauder] expects demand to remain strong.”

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