Estée Lauder Updates its Investment in China
- Chaileedo Press
- Mar 29, 2023
- 3 min read
Updated: Mar 30, 2023
Estée Lauder said that the center will be the largest cutting-edge technology research center in the Estée Lauder Group's international markets by 2025.
Today, the Estée Lauder Companies (ELC) first Innovation Day in China officially opened its new China Innovation Labs (the Labs), with the unveiling of two important sections of the Labs, the Labs’ new Global Advanced Technology Center (GATC) and Men’s Beauty Center of Excellence (MBCoE).
According to Estée Lauder, the two centers will focus on the needs of Chinese consumers and look at the global market in order to achieve new heights in the field of innovation.
At the event, Fabrizio Freda, President and CEO, The Estée Lauder Companies said, "Through breakthrough products, superior formulations and cutting-edge technologies, the China Innovation Labs will enable faster speed to market for our products, while also continuing our company’s commitment to providing high-quality products focused on effectiveness and safety to consumers in China and around the world."
During today's event, Estée Lauder also introduced the two new research centers. GATC is an important part of the Company's global research on frontier technologies. It will be dedicated to providing breakthrough technological solutions for Chinese and Asian consumers in the areas of anti-aging, skin science, i.e. the biological, physiological and morphological characteristics of the skin. Estée Lauder said that by 2025, the center will be the largest cutting-edge technology research center in the ELC's international markets by 2025.
The company also unveiled that the Labs will serve as ELC’s Men’s Beauty Center of Excellence, focusing on scientific research, product development and packaging innovation for men's beauty products, as well as conducting clinical tests for Chinese male consumers. This will help ELC to better understand the needs of Chinese male consumers and empower the development of its men's skincare brands, such as Lab Series, to help men of all ages to rejuvenate their skin and achieve a healthy complexion. The MBCoE will also cover categories such as make-up and fragrance.
According to Estée Lauder's latest financial results, Estée Lauder reported net sales of $4.62 billion for its second quarter ended December 31, 2022, a decline of 17% from $5.54 billion in the prior- year period. Net sales in Asia Pacific, where China is located, were down 17% from $1.57 billion in the prior-year period, due to other factors including the epidemic. However, Estée Lauder expects China sales to rebound in the third quarter of 2023 due to the easing of controls in the country.
It is worth mentioning that ELC visited Hainan Free Trade Port on 23 March, which was the first time in three years that the company visited China. It is reported that Estée Lauder has exhibited at China International Consume Products Expo (CICP) in Hainan for two consecutive years. At the second edition of the CICO, the ELC exhibited for the first time as a group with its 13 high-end brands.
“Creativity and innovation are at the heart of what we do at The Estée Lauder Companies, and we have an incredible 30-year history providing Chinese consumers with prestige beauty products and services that uphold our company’s commitment to quality, consumer need, sustainability, and innovation,” said Joy Fan, President and CEO, The Estée Lauder Companies China. “With more local innovation investment, we remain firmly committed to China’s consumers, whose expectations we aim to exceed–and whose lives we aim to enhance and touch.”
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