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Estee Lauder Companies’ Clinique brand is taking a holistic approach that drives customer engagement and customer loyalty.
During his company’s third-quarter earnings conference call on Tuesday, Estée Lauder Companies CEO Fabrizio Freda talked about Clinique’s consumer appeal.
“Its major launches earlier this fiscal year were successful higher-priced skincare products,” Freda said, according to Seeking Alpha. “And now the brand is also emphasizing its sizable makeup business in the U.S. and seeing encouraging results. For consumers, makeup provides instant gratification and fresh new looks. For Clinique, it offers more exciting opportunity for enterprise products, which attracts millennials and fits with the brand’s heritage positioning. Clinique’s spring makeup launches are the important subcategories of foundation and lipstick.”
Launched in February, Beyond Perfecting foundation and concealer is helping to drive the entire makeup category for Clinique, which grew again in the U.S. during the third quarter.
“To further strengthen its authority, Clinique is launching this fall its first cream in its best-selling Dramatically Different Moisturizing line by adding a formula geared to consumer with dry skin,” Freda explained. “The new cream should generate incremental phase in its powerful core franchise. We believe the brand is beginning to attract more millennials through this new makeup and skincare products, and at the same time, it is engaging consumers with fresh advertising, communication, in-store merchandising and new services.”
Freda said skincare sales will be integral to the company’s growth strategy.
“We have a number of key innovations from our biggest brands,” he explained. “Clinique recently launched two major products that reinforced its authority in customization and cleansing. One is its mass Smart Custom-Repair Serum that treats different concerns depending on individual skins and the other is Clinique Sonic System Purifying Cleansing Brush, which works in concert with its three steps cleansing system.”
Both products started on clinique.com with very positive results and are rolling out globally this quarter.
“We intend to increase our R&D investment this year,” Freda added. “Our innovation pipeline is robust across our brands and this year is more focused on wide spaced products that will fill intact areas for us. These kinds of product generate incremental net sales because they incur us tryout by both new and existing consumers. We also will continue innovating existing products in core franchises to keep them fresh which drives loyalty for existing consumers.”
What’s more, the company plans to expand its mobile capabilities.
“Our online business grew more than three times the rate of the total company and mobile is the fastest growing component of ecommerce with its sales having doubled last year,” Freda added.
Freda said the company’s broad base portfolio is a clear strategic advantage. Brands such as M-A-C, Jo Malone London, Smashbox, Bobbi Brown, and Tom Ford continue to be powerful engines of growth, generating double-digit sales gains.
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