Sold out in China, Estee Lauder Remained Popular Among Chinese Consumers

The inventory of Estee Lauder's eye creams in China were sold out by Chinese consumers so that Estee Lauder has to transfer stock globally to ship from stock around the world to China.

In 1946, Mrs. Estee Lauder founded the brand same as her name with the desire to bring beauty to every woman. For more than half a century, it has earned a global reputation for leading-edge technology and efficacy. Today, its line of skincare, makeup and fragrance products are sold in more than 130 countries and territories around the world.

Mrs. Estee Lauder has always believed that “every woman can always be beautiful and fashionable”. In doing so, she brought her taste of life and her sensitivity of fashion to the Estee Lauder, which not only reshaped the American cosmetics industry, but also influenced the global cosmetics market.

The Chinese market has been a blessing for the Estee Lauder.On first day of the pre-sale during the Double 11 – Chinese Online Shopping Carnival on November 11st in 2019, Chinese consumers bought out the 410,000 bottles of eye cream that Estee Lauder had in stock in its Chinese warehouse. Estee Lauder had to transfer the goods globally and shipped the hot sale essence in stock around the world to China in an emergency to meet the consumption enthusiasm of Chinese consumers.

Data show that: the first day of Tmall Double 11 pre-sale, sales of Estee Lauder exceeded the whole day of Double 11 last year in the 25 minutes. 410,000 bottles of its essence in China’s inventory of eye cream were sold out, the equivalent of selling a bottle of eye cream every 15 seconds. At this rate, Chinese consumers bought nearly 20% of the global sales of the eye cream on this day. Tmall “Double 11” in 2019, orders from pre-sale of Estee Lauder amounted to more than $ 155 million, which was the first brand to enter the “$ 155 Million Club”.

The speed was so amazing that Estee Lauder held an internal meeting to do their best to address more supply and demand from Chinese consumers. “We have anticipated that Tmall Double 11 would be hot so that we have specially prepared sufficient goods. But the result of pre-sale is still unexpected.” An Estee Lauder management said.

According to industry practice, nine months before the Double 11 every year, international cosmetic brands will prepare inventory for the Tmall Double 11. These goods have been prepared in place six months in advance. Even most of them will deliver by sea into the Chinese warehouse. Preparation of goods is often expected to temporarily break because of the sales. But in the shopping festival this time, the sales were out of expectation and preparation even the inventory by air cargo in advance is not enough.

On November 8, 2019, Estee Lauder joined hands with Taobao Live, a consuming live-streaming platform, to conduct a brand live-streaming campaign with the theme of “Tonight – Frozen Youth”. Estee Lauder Advanced Night Repair Series, Double Wear Stay-in-Place Makeup Foundation and other selected products were snapped up by fans right after they launched. The hot products in its live streaming were also popularized by the sale of more than 500,000 bottles of Night Repair Eye Cream, more than 160,000 bottles of Night Repair Serum and 65,000 pieces of Skincare Set. During the Double 11 – Chinese shopping festival in 2020, Estee Lauder once again overwhelmed the other brand and became the first flagship store of Tmall to enter the $155 million club in just 2 hours on the opening day of the sale on November 1.

China is one of the most important strategic markets for Estee Lauder Group globally and the brand will be the focus on its future development in the emerging markets of Asia Pacific, including China. In 2021, the list of “China’s Outstanding Employers in 2021” by the distinguished employer research agency was announced, Estée Lauder Group China was once again honored as one of the “Top Employers in China” with the employer brand building. This is the sixth consecutive year that the company has received this award.

On May 13, 2021, the construction of the Estée Lauder Group Global R&D Center China project officially started in Shanghai. The construction was announced by Estée Lauder Group to the public during the pandemic in February 2020, which reflected a strong belief in the opportunities in China and a positive attitude towards its development. In the future, the center will be the largest innovation R&D center in the international markets of Estee Lauder Group.



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