Today, in response to the issue of the Estee Lauder China duty-free channel management rights changing hands, a relevant Estee Lauder representative told the media: “This news is not true.”
Recently, there have been reports that Estee Lauder will undergo channel reforms in July, with Estee Lauder China taking over the duty-free channel management rights from Estee Lauder Group.
It is understood that all products in Estee Lauder’s duty-free channels in China are supplied by the Group’s headquarters and are not related to the China subsidiary. The associated performance is also directly attributed to the Group.
It is noteworthy that in the fiscal year 2021 financial report, duty-free channels led by Estee Lauder’s travel retail sales accounted for up to 28%. In the past two years, travel retail has been continuously declining, becoming one of the factors affecting Estee Lauder’s performance decline. In the fiscal year 2023, Estee Lauder Group’s global travel retail business natural sales decreased by 34%, with the current sales proportion being about 20%.
