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Estee Lauder’s brand and parent company is an extensive manufacturing and distribution company of cosmetics, skin care and fragrances. According to the latest survey in 2022, this company today owns 25 prestigious brands, and since the year of its establishment, the full franchise of the company and brand belongs to the wealthy Lauder family. We have dedicated this article to review everything related to the Estee Lauder brand.
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Ms. Estee Lauder’s biography; Founder of the brand
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You are a child and a teenager
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Mrs. Josephine Esther Mentzer, known as Estée Lauder, was born on July 1, 1908 in the Queens area of New York City. He was the second child of the Mentzer Jewish family; His mother, Rose, immigrated to the United States from Hungary with her five children in 1898 to join her husband, Abraham Rosenthal. Unfortunately, this relationship ended in separation some time later, and Rose married Max Mentzer in 1905, and three years later their daughter Este was born.
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Even though her name was Josephine Esther, her parents called her Estee since childhood. Estee spent her childhood and adolescence struggling to make ends meet. He worked with his siblings in their parents’ hardware store; Where he first understood the concept of business and retail and learned the rules of work. However, working together also teaches its lessons. It is interesting to know that Esty’s first childhood dream about his future job was a hairdresser. For example, he combed his mother’s hair and liked to put makeup on her face.
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Cooperation with a chemist uncle, the first spark of the production of cosmetic products
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The young Este was not very interested in his job; Therefore, he decided to work with his uncle who owned a small cosmetics retail shop. Estee’s uncle was a chemist and produced some of the products in his shop himself. It can be said that Esti’s interest in producing cosmetic products was formed during this period of her life. His uncle had started the manufacturing process from the sink of his house and was doing this work from time to time in the laboratory. When Esty joined his uncle, he had just started production in a small laboratory.
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Esty agreed with his uncle to do the marketing of the products. So that uncle produces the products and Estey does the marketing work to sell the products in person in different places. Following this decision, the first location option was beauty salons near the shop and laboratory.
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Estee’s first goal was to find permanent customers for the products. That is, those who will buy from them continuously to provide a certain amount of income for Esti and her uncle. After a short time, he learned the job of making cosmetics from his uncle; But in order to increase his sales, he decided to change his marketing style.
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Changing marketing and sales style
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Estee packaged four daily cosmetics in a new way and changed the names of the products as well. He tried these products on the faces of women who sat under the hair dryer in beauty salons and had nothing to do. In fact, he was doing hairdressing along with marketing to encourage his customers to buy. Usually Estee went to those who were planning to go to a party or a party and beauty was important to them. Finally, those who liked his work bought from him.
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Married to Joseph Luther in 1930
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Estey graduated from Newtown Queens High School in New York in 1927, and it was then that she met her future husband, Joseph Luther. Two years later, in 1930, they got married and moved to the Manhattan area. Esti continued to work in sales and marketing even after marriage. His wife also accompanied him in production and sales. With the difference that this time they were selling their products in beauty salons in Manhattan. Many customers were satisfied with the products and introduced Esti to their friends, and this increased the number of customers. It didn’t take long for the fame of their products to spread in Manhattan beauty salons and after years of hard work, Esty was able to achieve a relative success.
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Note 1: Joseph Luther changed his last name to Lauder some time after his marriage.
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Note 2: The first child of this couple named Leonard Lauder was born in 1933.
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Setting up product introduction booths in beauty salons
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After the number of requests for products from beauty salon customers increased, Estee Lauder decided to provide a number of its products to salon managers; It initially started with a limited number of products that included cosmetics and skin care; But over time, the number increased and Esty decided to set up a booth in some halls. He even sent his popular products to hair salons near Manhattan with the help of these salons.
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Divorced and remarried Joseph Lauder
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In 1939, when Estee and Joseph Lauder had been together for nine years, they separated due to lack of understanding. This separation lasted only three years; Because in 1942, after the changes that Joseph made in his lifestyle, Esty gave Joseph a second chance for the sake of his child; An opportunity that brought them the biggest chance of their lives. Estee and Joseph Lauder’s second child, named Ronald, was born in 1944, two years before the Estee Lauder brand was founded.
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Establishment of Estee Lauder brand in 1946
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In these years, the path was completely clear for Este. He wanted to launch his own product line and had been trying to achieve this goal for years. Finally, in 1946, by launching a production line including cosmetics and care products together with her husband Joseph Lauder, by changing the name of the products to Estee Lauder, they established their brand as a brand of cosmetics and care products. They immediately started selling their products in all beauty salons and hotels in New York.
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Opening of Estee Lauder brand headquarters in New York
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Estee Lauder’s second goal after establishing its eponymous brand was to open a headquarters on Saks 5th Street in New York City, which it also fulfilled. It is interesting to know that Ms. Estee Lauder had this opinion about her success:
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I never dreamed of success, I worked hard to achieve it.
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Unsuccessful order leading to success
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After Estee Lauder’s New York clientele became established, Estee decided to sign with luxury New York cosmetics stores. Also, after establishing the brand, Esti intended to make its products available to the public only in this range of stores; Therefore, after many efforts and marketing, finally in 1947, he was able to receive his first order from a store located on Saks 5th Street, with a figure equivalent to 10,000 dollars today. This order included cosmetics, skin care and perfume.
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Some sources claim that when the products are delivered, the owner of the store refuses to accept them, and Estee Lauder’s insistences have been of no use either. That’s why Esty gets angry and knocks one of the perfume bottles on the floor! The glass breaks and the smell of its perfume wafts through the shop. For several days, all the customers of the store are attracted by its smell as soon as they enter and ask the sellers to guide them to buy this perfume. In this way, the store owner is forced to order Estée Lauder perfume again.
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Estee Lauder brand events in the 1950s
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In 1951, even though Estee Lauder was no longer a stylist or marketer of cosmetic products, he still wanted to communicate directly with his customers. He would introduce his products to customers by visiting the stores with which he had a business contract, and even try them on the customer’s skin if needed. Customers were also satisfied with his treatment. We can even say that one of the reasons for Estee Lauder’s initial success was his correct customer orientation. We will examine this issue further.
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Estee Lauder brand focuses more on perfume production
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In the first two years of the 1950s, Ms. Ste focused on the production of brand name creams and lipsticks; But customer objections to the brand’s perfumes made Estee Lauder rethink the way it produces its perfumes.
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Customers protested for two reasons:
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1. The fragrance does not last long
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2. The high price of perfumes compared to their quality
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With this story, Estee Lauder realized that although women often use perfume when they are present in special situations, it is important for them to buy a good perfume. For this reason, he tried to produce diverse and durable scents to get the full satisfaction of his customers.
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With the help of its staff, Estee Lauder tried new formulas and created a perfume that was suitable for daily use and lasted 24 hours. A perfume called Shabnam Javani, which was available to customers in 1953 at a price of nearly nine dollars. Due to the creative packaging and long shelf life of these perfumes, about 5,000 of them were sold in a week, which in turn was a record and a great success for the fledgling Estee Lauder.
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Production of Re-Nutriv rejuvenation cream
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In 1956, the brand launched a skin care cream with antiaging and rejuvenating properties, combining the most beneficial and valuable ingredients in its line. Estee Lauder believed that its customers should feel light after using this product and enjoy their purchase, which happened. This product attracted the attention of customers in the shortest time and despite the high price, it was sold for 115 dollars. It should be noted that this product has been very valuable to Estee Lauder since then and is on the list of the brand’s best-selling products.
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Estee Lauder rejuvenating creams at Digikala
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The son of the family joining Estee Lauder brand
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In 1958, after learning management and leadership skills as well as completing his military service in the United States Navy, Leonard officially joined his parents at the age of 24. In fact, he started his career at Estee Lauder in his teenage years. For example, she helped her parents with her bicycle when moving products to beauty salons. Even before the age of 24, he was with his mother in many important business contracts.
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Ms. Estee Lauder believed in her child’s abilities in this field; Because Leonard’s efforts and crisis management were similar to his own performance. After starting his official activity, Leonard also managed the company based on his mother’s policies; Therefore, as her mother’s age increased, she took control of more affairs. Although the performance of his younger brother Ronald was also influential in the growth and development of the company, an important part of Estee Lauder’s achievements after Estee himself is the result of Leonard Lauder’s efforts.
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Important note: In the last years of the 1950s, Estee Lauder Company reached an income of more than 800 thousand dollars.
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Estee Lauder’s important events in the 1960s
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Introducing the Aramis brand
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In 1964, Estee Lauder introduced the Aramis brand to its global customers. The initial product of this brand was a men’s perfume whose ingredients included citrus extracts, aromatic plants and several types of spices, and the final result of this combination conveyed a scent close to the smell of wood to the audience. Estee Lauder customers welcomed this new brand product very much. The Aramis brand is still active today and is considered one of the important brands of Estee Lauder.
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The death of two big names in the cosmetics industry
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In 1965 and 1966, Estée Lauder entered a tight competition with other companies due to the deaths of Helena Rubenstein and Elizabeth Arden. For example, Revlon, which had just launched a line of men’s perfumes, produced a perfume called Braggi, and since this scent was also very popular, the competition between the two brands reached its peak.
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Introducing the brand of clinic care products
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It can be said that the most important event of Estee Lauder company in the 1960s was the introduction of the Clinique brand. Estee Lauder was able to strengthen its position in the cosmetics industry after that. The story was like this:
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In August 1967, Vogue magazine’s beauty editor, Carol Phillips, published an article that ignited the first spark of the Lauder family’s bridal mind clinic brand, Olaine Lauder. Carol Phillips’ article was actually a written interview with dermatologist, hair and beauty specialist Dr. Norman Orntreich titled: Is it possible to have perfect skin?
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In response to this question, Norman, an American physician, recommended a three-step skin care and protection routine to readers, which included the use of cleansers, exfoliators, and moisturizers. Reading these few lines for Olaine Lauder was enough to attract the attention of his mother-in-law and he succeeded; Because this idea was very practical and attractive from Estee Lauder group’s point of view. Therefore, they immediately invited Norman and Phillips for a business meeting.
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Introducing the three-step skin routine system
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Dr. Orntreich’s review of the three-step system in this meeting started a new era in the field of the company’s skin care products; Because this was the first time that skin care products were produced under the direct supervision of a doctor specializing in that field, and it was considered a historic action. After one year, in 1968, Estee Lauder and Dr. Orntreich’s team finally designed and produced a complete collection, which was to be introduced to people around the world for the first time.
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This collection with 117 products and 100% without the use of artificial fragrances, had an allergy test for all types of skin and was designed with various packages. All of them were available to customers with the opening of the brand’s first branch on Saks 5th Street in New York City. In this way, the Clinique brand was officially opened as the third brand of the Estee Lauder company, after the Aramis brand. Since its establishment until today, it has been fully owned by Estée Lauder and its headquarters is now located in New York City.
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tip: The establishment of the Clinique brand brought the Estee Lauder company into crisis; A crisis that brought many risks for the exclusive products of the Estee Lauder brand. For example, just a few years after the establishment of the clinic, the brand faced a financial loss of three million dollars. Therefore, Mrs. Lauder decided to expand the production line of the Estée Lauder brand as well as the Aramis brand. Also, Estee Lauder continued its efforts to maintain this product line and was able to increase the clinic’s profit to the highest possible level. Clinique is one of the most successful skin care brands today.
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Estee Lauder brand events in the 1970s
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Collaboration with famous model Karen Graham for advertising
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In 1971, the Estee Lauder brand finally introduced a distinctive image of itself to its customers. Since the cost of color advertising was very high at that time and the company could not afford this range of costs, the brand think tank decided to use black and white images. Also, the brand’s collaboration with Karen Graham, who introduced a relaxing and elegant image to people, was also effective in this regard. Karen’s collaboration with the brand was very successful; For this reason, Estee Lauder extended his contract and this collaboration continued for another fifteen years. It is interesting to know that for many years many people assumed that this image was of Estee Lauder himself.
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The selection of Leonard Lauder as the head of Estee Lauder brand
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In 1972, Leonard Lauder was elected as the head of the brand after twelve years of official activity. After starting his activity as the president, he focused more on maintaining good relations with the buyers of brand products; For this reason, he adopted new systematic and goal-oriented methods in this field. Estee Lauder himself, as the chairman of the board of directors of the brand, directly supervised the activity of the brand in the mornings from home and in the afternoons at the headquarters. Joseph Lauder also oversaw the production of factories in Melville, Canada and Long Island, New York.
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Failure to compete with Rolon
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In 1975, just when the Estee Lauder brand was able to reach one billion dollars in sales, the Rollon company reached sales of over $1.2 billion and surpassed Estee Lauder in this competition. Although Rollon was expected to experience a drop in sales after the death of its leader, Charles Rawson, contrary to expectations, it managed to maintain its strength and beat Estee Lauder.
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Launching a new line of skin care products
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In 1979, Estee Lauder launched a new line of care products. Although the style of its products was similar to that of Clinique brand, the technology used in this product line was more advanced than Clinique. The initial products of this line were provided to customers along with free one-hour consultations. It should be noted that this collection was not very well received.
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Also, in 1978, the total income of Estee Lauder brand reached 170 million dollars. The sales of Clinique products were estimated at 80 million dollars and the sales of Aramis products, which had more than 40 types of products, were estimated at 40 million dollars. As a result, men’s products brought less income to Estee Lauder, and since the prices of the products were expensive, the company decided to reduce the prices to some extent in order to increase the sales chart. After the success of Ralph Lauren’s first product in the last months of 1978, Estee Lauder decided to introduce a new men’s product.
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Estee Lauder brand events in the 1980s
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Selection of Leonard Lauder as CEO of the company
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In 1982, he was named CEO, and another family member, Ronald Lauder, was named president of international operations. This part of the brand accounted for more than half of the company’s sales. Of course, the aforementioned changes did not affect Estee Lauder and her husband Joseph Lauder’s activities on other important executive departments.
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Death of Joseph Lauder
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In 1983, Joseph Lauder, one of the founders of the brand, died at the age of eighty. This event greatly affected Estee Lauder; To the extent that even months after this incident, he was sad and could not work as before. For the first time in his working life, he felt powerless.
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Brand milestones in the 1990s
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The selection of Robin Burns as the executive director of the brand
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Although all members and employees of the company were waiting for the extension of Mr. Jay Barnes’ position as the executive director of the domestic department, surprisingly, this position went to Robin Burns and Jay Barnes continued to work as a consultant for the international brand department. Robin Burns started his career in 1974, when he was only 21 years old. After that, he joined the staff of the Calvin Klein brand in 1983. Burns played a key role in the introduction of two important brand fragrances.
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Estee Lauder’s first global investment
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In 1993, Estee Lauder entered the global investment market for the first time by signing a contract with famous fashion designer, Tommy Hilfiger. Also, two years later, Aramis brand launched Tommy perfume for men. After that, due to numerous requests from customers, Nair produced Tommy Girl women’s perfume brand. Young couples liked the simultaneous use of these two perfumes, and for this reason, this Estee Lauder product was also well received by customers.
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Increasing the annual income of Estee Lauder brand
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In 1996, the Estee Lauder brand increased its annual revenue by reaching a profit of 3.19 billion dollars. This figure was more than the previous year’s income.
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Expansion of the principal capital after the increase in income
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In 1997, annual revenue peaked and Estee Lauder was able to acquire ownership of Sasabi and Aveda Corporation. Until then, Estee Lauder’s regular level products were available to customers only in luxury stores; But after that, all brand products were also available in pharmacies, supermarkets and discount stores like Walmart. This event provided a new marketing path for the brand, which led to two important results: firstly, increasing the annual profit again and secondly, customer satisfaction.
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Buying Mac and Bobbi Brown brands
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Prior to the 1997 acquisitions, Estee Lauder was thought to be neglecting other aspects of the business by focusing on retailing in large malls; But by buying popular brands like Mac and Bobbi Brown, he proved that he puts his business under the microscope from all dimensions and never goes without a plan.
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Special attention to advertising
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Contrary to previous years, Estée Lauder has put advertising programs in the center of its attention since 1998. At the end of the said year, he spent 28% of his annual net profit on advertising, which was about 1.3 billion dollars! Estee Lauder also planned to increase the number of brands under its ownership every year; Therefore, in 1999, he entered into negotiations with the owner of the cosmetic brand Stila Cosmetic to buy its full shares and had a positive view on the purchase of the brand.
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Important brand events in the 2000s
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Receive the title of global leader
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At the beginning of 2000, Estée Lauder Company, with 48,000 employees and more than 1,500 independent stores around the world, took the title of global leader in beauty and health products. According to Forbes, Estee Lauder is one of the largest cosmetics companies in the world.
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Estee Lauder passed away
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Estee Lauder died in 2004 at the age of 97. Although this loss was very difficult for the Lauder family, as Estee Lauder’s brand and company meant a lot to Estee, her family did not let this grief stop them. For this reason, Leonard Lauder fully took over the mother’s duties, then handed over the responsibility of the executive chairman to his son William so that the company does not fall.
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Signing a contract with the Tom Ford brand
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In 2005, Estée Lauder and Tom Ford entered into negotiations to produce perfumes and cosmetics and signed a contract. This cooperation continues until now.
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Hiring a new operational manager
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In 2008, Fabrizio Ferda was hired as Estee Lauder’s President and Chief Operating Officer. He focused more on the financial management and annual revenue of the brand and performed well in the company.
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Focusing on the Estee Lauder brand family business
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In 2009, the brand’s think tank decided to hand over top positions to family members only. Therefore, William Lauder, the eldest son of Leonard and Olaine Lauder, became the chairman of the board of directors of the brand. Later that year, Jane Lauder, son of Ronald Lauder, also joined the board of directors.
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Important brand events in the 2010s
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Expanding the aesthetic point of view
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Beginning in 2010, Estee Lauder became known as the only beauty product company that focused exclusively on makeup and skin care. In such a way that besides cosmetic products, it also focuses on fresh and healthy skin. Estee Lauder believes that a woman, along with the concern of beauty, should also be concerned about her healthy and fresh skin. And finally, men and women should pay attention to their personal hygiene by buying deodorants, perfumes and other products.
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Buying the namebox brand
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In late 2010, Estee Lauder bought the namebox brand. This brand originally belonged to the grandchildren of Max Factor, whose full rights were transferred to Estee Lauder.
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New record annual revenue
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In 2012, Estee Lauder’s net income exceeded ten billion dollars for the first time and set a new record in this field.
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Introducing the new brand Arin
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In 2012, Arin Lauder, the son of Ronald Lauder, launched his own eponymous brand based on the description of a luxury lifestyle, luxury cosmetics, fragrances and various body lotions. The activity of the Aryan brand continues until now.
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Focus on the modern workspace
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Estee Lauder has been introducing luxury and modern style to its customers since the past. For example, starting in 2015, it designs all its stores and offices in different countries in a fashionable way. The brand think tank believes that the work space should be unique and modern so that employees are highly motivated to do work and develop creative ideas.
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Purchase of Dr. Jarrett Company
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In 2019, Estee Lauder completed its collection of skin care products by acquiring the global skin care company Dr. Jarrett. This company, which is famous for producing the highest quality care products, uses ingredients like Sikapyr and Ceramidine in its products. Also, the company’s headquarters is located in Seoul, South Korea.
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tip: Sikapyr soothes the skin and ceramide is a type of lipid that is used as a moisturizer for dry hair and makes it soft and supple.
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Estee Lauder brand events in recent years
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Attention to the cleanliness of nature
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In 2020, Estee Lauder and its subsidiaries around the world took action to produce 100% renewable electricity and reduce greenhouse gas emissions. This company claims that it will include this type of activity in its work program forever.
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A serious decision to make a change in performance
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In 2021, Estee Lauder signed a collaboration agreement with Amanda Gorman, a young American poet and activist, to move the company’s activities towards gender equality. Amanda Gorman is the first person to win the National Young Poets Award.
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Celebrating the anniversary of the establishment
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In 2021, Estée Lauder celebrated its 75th anniversary. The company still emphasizes the preservation of the legacy of Estee Lauder and Joseph Lauder and adheres to the rules established by Ms. Estee Lauder years ago.
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Investigating the success factors of Estee Lauder brand
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In this section, we introduce some of the success factors of Estee Lauder brand.
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There is a different strategy in product introduction
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When introducing cosmetic and skin care products, Esti would try the product on the customer’s face in a special way. For example, the person distributing the cream massaged the customer’s face so that in addition to proper absorption, the audience would enjoy their shopping experience.
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Psychological analysis of customers
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Estee occasionally dressed like her regular customers, and had her hair done like them, so that the customer felt close to her and the class difference was not so obvious. This work of his made all sections of the society eager to see him and buy his products in the shortest time.
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Changing the marketing method of Estee Lauder brand again
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In order for customers to understand the true quality of Estee Lauder products, Ms. Estee Lauder decided to offer her products only in department stores.
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Estee Lauder brands
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As we said, this company owns 25 brands, including Aramis, Clinique, Ariane, Aveda, Bobbi Brown, Bumble and Bumble, Darphin, Dr. Jarrett, Frederick Mill, Estee Lauder, Glam Glow, Jo Malone, Killian, Lamar. , B Series, Le Labo, Mac, Nived, Origins, Namebox, Ordinary, Tom Ford and You Faced.
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final word
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Today, Estee Lauder is one of the leaders of beauty products and is considered a legacy for this industry. It has many fans all over the world and its popularity is increasing day by day. In this article, we tried to check all aspects related to this company, if you use Estee Lauder products, share your opinions about the quality of the products with us.
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