06.01.16
What do you get when you give one billion consumers cellphones? A new growth strategy. In its fiscal third quarter ended March 31, 2016, Estée Lauder posted a 70% gain in e- and moble commerce sales, and 10% of the company's business in China was done online. In comparison, Estée Lauder's total retail sales in China increased 8%, a far cry from the 20% gains it posted in the past.
To get growing again, Estée Lauder will diiversify its brand portfolio in the region along with a geographically diversification by penetrating into more cities in China. It also plans to increase the number of freestanding stores, particularly in cities where there are no alternative distribution solutions such as departmental stores. The Asia Pacific region (including China) accounts for less than 20% of the company’s net sales, but it has plenty of potential—especially with the growing use of cellphones.
To get growing again, Estée Lauder will diiversify its brand portfolio in the region along with a geographically diversification by penetrating into more cities in China. It also plans to increase the number of freestanding stores, particularly in cities where there are no alternative distribution solutions such as departmental stores. The Asia Pacific region (including China) accounts for less than 20% of the company’s net sales, but it has plenty of potential—especially with the growing use of cellphones.