Estée Lauder is set to make a splash in Africa, according to Reuters. The NY-based cosmetics retail giant will introduce its high-end brands in the sub-Saharan continent to tap the growing middle class of the region. Estée Lauder has identified several key markets in the region and is eyeing markets with biggest growth potential. Locations like Lagos, Abuja and Port Harcourt in Nigeria, as well as the capitals of Ghana, Kenya, Tanzania, Mozambique and Angola are of great importance in Estee Lauder’s list of potential African markets.
Estée Lauder has plans to introduce Clinique brand in Nigeria by 2013 and later in Mozambique. It is set to strengthen its position in the sub-Saharan continent with several launches in the pipeline, reports Reuters. After gaining huge popularity following its launch in Lagos in 2012, Estée Lauder is set to introduce the MAC makeup brand to newer markets in the region and open additional stores in the Lagos region as well. With its broad range of fragrances, MAC will set its footprint in Cote d'Ivoire and open stores in Botswana and Zambia.
However, Estée Lauder has been witnessing soft sales in the U.S. and European markets due to the ongoing macroeconomic challenges. In its last earnings release, sales in the US and European region inched up only 1% and 3%, respectively.